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Outsource a “TC” or Hire One “In-House”
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Outsource a “TC” or Hire One “In-House”Daniel Dobbs2025-04-22T13:41:32-07:00
All three times went sooo easily,…
For the third time in four months, I directly interacted with a buyer’s agent, “TC,” as a primary source of contact when an agent’s medical issue arose.
Having a single point of contact ensured the deals flowed smoothly and set the stage for many future referrals and repeat business, for lenders and agents alike.
Your Buyer Can Choose Any TC – I’ll Rebate Part of My Commission to the Buyer’s TC Fee
With prices rising and the stock market swinging wildly, sellers will be scrutinizing fees, now more than ever. I’m willing to rebate a portion of my commission directly to the buyer at COE (in compliance with RESPA).
The more smoothly a deal goes, the more likely we both get referrals, repeat buisness, and the sooner I can get off my Xanax drip LOL!
Which is Better:
“Outsource a Transaction Coordinator or Hire In-House”?
It’s no secret that a transaction coordinator can help agents get more done.
A skilled coordinator can save buyers and their agents up to 16 hours per deal, while also supporting the agent in closing twice as many sales per year.
The real question is whether it is better to outsource a transaction coordinator or bring one on as an employee.
We will evaluate these two options on three critical factors.
1. Overall investment cost
2. Skill level assessment
3. Redundancy risks
Overall Investment Cost of a Transaction Coordinator
Hiring any new employee can be costly.
It starts with the expense of the ads to find the employee and the administrative time spent interviewing and selecting the right candidate.
When you find the right transaction coordinator, you have probably spent between $300 and $500. That’s before you’ve brought them on board.
Then, you need to invest the time and effort to train them and handle everything that goes into an employee’s cost, i.e., salary, benefits, and taxes.
After 12 months, you may have invested $35,000 – $60,000 for one ‘good’ transaction coordinator.
Outsourcing the transaction coordinator role results in significantly lower up-front investment costs. The only upfront expense is the time you spend researching transaction coordinator services.
When you vette a service, you’ve invested just a few hours. With the exemplary “TC” service, your time investment ends there. The actual services become a “scalable”, transactional expense, making it more manageable to demonstrate a return on your investment.
The service company spends time and money hiring and training the most skilled coordinators and preparing them to do things your agency’s way.
You typically pay per transaction for a service.
You can expect to spend approximately $500 per side per transaction with the right provider. That means you could use your outsourced coordinator for 100 deals before you even approached what you would spend to bring one in-house.
Skill Level Assessment
A good transaction coordinator service provider ensures their coordinators have appropriate experience and are vetted by multiple administrative employees to guarantee their quality and professionalism.
The best providers offer coordinators who have passed a rigorous training program, including “test clients” before working with real clients.
For example, fewer than 10% of the coordinators who apply are cut out to efficiently service agents.
Hiring an in-house transaction coordinator can result in the same quality level that a service company can offer. Still, you must carefully oversee training and coach them to achieve that level.
Meanwhile, with a service company, you will receive the desired level of excellence from the start, thanks to your dedicated coordinator.
Redundancy Risks
If you hire an in-house transaction coordinator, you will have a single point of contact to process your transactions. What if they get sick, go on vacation, or have to care for a family member?
You may be out of a salary while they are away and have no one to handle the tasks associated with your deals; you are doing all the work again, and still paying someone.
With the exemplary transaction coordinator service, redundancies are built into the structure. The best service companies have an extensive network of coordinators ready to support your dedicated coordinator and take on your work in their absence, resulting in minimal downtime.
For example, the TC keeps notes regarding exact needs & processes that can be shared with backup coordinators if yours is away.
Hiring a TC service is a smaller investment of time and money. You’ll get a more qualified person with guaranteed uptime for all your deals.
t, 2018 Daniel Dobbs MHM Mortgage /// All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Daniel Dobbs, Author- VP-Broker Mutual Home Mortgage 265 S. Randolph #120 Brea, Ca. 92821 Cell: 949 250-3981 Dandobbs6@gmail.com NMLS #307631 BRE #00986886
