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The Hidden Costs Of NOT Using a Real Estate Transaction Coordinator
Posted by JasonDaleyTransaction Coordinator services are growing fast in the real estate world. There is high appeal of only paying an assistant when you have a transaction and freeing up your time so you can concentrate on money making activities. The proper transaction coordinator / Virtual Assistant services can not only save you money and time but can create more opportunities for you to capture more business.
Most Transaction Coordinators simply manage the transaction, and then spend the rest of their day trying to convince you to use their services. They manage the real estate transaction for the Agent, but most don’t directly help the Agent cultivate Repeat and Referral business. A wise Transaction Coordinator will put their energy into assisting in the Agents’ success as a primary goal. The Transaction Coordinator realizes by creating opportunities for the Agent to do more repeat and referral business, they are also creating opportunities for themselves to do more business as Transaction Coordinators / Virtual Assistants? Unfortunately most Transaction Coordinators / Virtual Assistants don’t get that parallel.
Misconceptions!
One study says the average agent spends 19 hours managing the transaction themselves.** So it is true that just by using traditional Transaction Coordinator Services you could have more time that could be used to prospect for more clients.
In some agent’s eyes there was no real benefit to paying for Transaction Coordinator services because they wasted the extra time. The sad truth is time management mastery is difficult for most of us and that life always seems to get in the way with the phone ringing with people trying to sell you on their services instead of providing opportunities for your success
Utilizing the extra time created is key to accelerating your business, if you save 19 hours, then make the commitment and time block 19 hours for lead generation elsewhere. If your goal is to have 19 more hours at home with your family then time block those activities. That way you are getting the maximum benefit out of the services you are paying for.
Additional Included Services?
What if the Transaction Coordinator / Virtual Assistants Service you use is also sending out Touchpoints during and after the transaction on your behalf? What if those Touchpoints are designed to cultivate repeat and referral business for you? Then the Transaction Coordinator has not only freed up 19 hours** of your time, the Transaction Coordinator has also helped you to foster a relationship with that client that can lead to future business. The best part for you, the agent, is that it was all part of the Transaction Coordinator services anyways.
Shift Your Thinking
If, for example, you take an average sales price of $250,000 at 3% commission that is $7,500 for the Agent, now if you took the cost of typical Transactor Coordination Services at $325, then you could use our services 23 times to equal the cost of that transaction.
$7500 / $325 = 23.076
If Touchpoints were being sent to your clients at every one of those 23 transactions, don’t you believe that you could get repeat and referral business out of those efforts?
Now picture your business if you used that 19 hours** wisely and fostered more referral moments, or prospected for more new clients?
23 transactions x 19 hours = 437 hours
19 hours over 23 transactions equals 437 hours of pure prospecting time that you can use to create more business. How many transactions do you think you could get with 437 hours of targeted prospecting? That $325 should be looking like quite a bargain to you right now!
The point is that we are still providing the same or better Transaction Coordinator Services, but helping to make you a success in the process. Our hope and goal is that you will increase your business so much using our services, that it will increase ours in the process.
We believe and understand the true power of Repeat and Referral Business. If we invest our time into our clients, we no longer need to spend our time looking for more business. We know the more time and effort we invest making Agents (our clients) more successful, we will receive repeat and referral business from our happy Agents.
There are many questions to ask before hiring a Transaction Coordinator or Virtual Assistant like “What can your services do to increase my business?” And in any wise change in your business plan you need to seek out the pros and cons of the return on your investment. But you should NOT just be asking yourself “How much do Transaction Coordination Services cost?” Instead you should be asking “How much is it costing me not to be using Transaction Coordinating Services?”
Go to our website www.web-tcs.com and see how we offer more than our competition for less money.
** Time Savings and Opportunity Costs
**“While the TC spends an average of 12.5 hours on a typical transaction, the average agents spend approximately 19 hours managing a transaction. The time spent managing the transaction has significant financial implications on the agent. Assuming the average full-time, experienced Real Estate agent earns $75,000 a year (equal to $37.50 an hour); the agent will spend in excess of $700 in his/her time managing a transaction.
**Reference: “The Transaction Coordinator An Underutilized Asset to Residential Real Estate” Clareity, Consulting & Communications, June 2003
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