How To Determine Your Transaction Coordinator Fee: Everything TCs Need To Know
If you’ve decided to offer independent transaction coordinator (TC) services to real estate businesses, one of the first things you need to determine is your fees.
When a broker or real estate agent hires a transaction coordinator, they can expect to pay an average of $300 to $500 per month, and onboarding fees are generally around $125.
However, your pricing will depend on the level of transaction coordination services you provide, the hours you put in, and the number of transactions you manage.
In this quick guide, we’ll unpack some common TC pricing models, factors to consider when setting your TC fees, and how to adjust your pricing as your business grows. We’ve also included some real-world examples of real estate transaction coordinator pricing.
Common Transaction Coordinator Pricing Models
When setting your transaction coordinator fee, you can use one of several pricing models. The right approach will depend on your experience, services offered, and client experience. Below are the most widely used pricing structures:
Per transaction fee
Many TCs charge a set fee per real estate transaction, making this one of the most straightforward pricing models. This fee typically covers coordinating a single real estate deal from contract to closing.
The per transaction model is appealing to brokers and real estate agents because they only pay when they have a deal in progress, and it allows TCs to predict income based on their transaction volume.
Flat monthly fee
Some transaction coordinators opt for a flat monthly fee, providing unlimited services for a fixed price.
This model works best for a real estate agent or broker with a high transaction volume and who needs ongoing support.
It provides stable, recurring revenue for the TC and can encourage long-term client relationships.
Tiered pricing
A tiered pricing model offers different service levels and varying price points. For example, a basic package might include contract management only, while a premium package could include additional support, such as compliance reviews, client communication, or marketing assistance.
This approach allows brokers and agents to choose the level of service that fits their needs and budget.
A la carte pricing
For those who want maximum flexibility, an a la carte model allows clients to pay only for the specific services they need.
This could include document review, scheduling inspections, or drafting disclosures.
TCs who use this model can tailor their services to each transaction, but transparent pricing and communication are required to avoid confusion.
Hybrid pricing
Some transaction coordinators blend multiple pricing models to create a customized structure.
For instance, they may charge a per-transaction fee for standard services but offer add-ons for an additional cost.
Others might provide discounts on the TC fee charged based on transaction rates for brokers or agents who commit to a monthly retainer.
Factors to Consider When Setting Your Rates
When determining your rates, you should consider several factors to ensure your pricing is competitive, sustainable, and reflects the value you provide. Below are the most important factors to keep in mind:
1. Experience and expertise
TCs with more experience, specialized knowledge, or certifications can justify charging higher rates. If you have expertise in handling complex transactions, you can position yourself as a premium service provider.
2. Scope of services
A basic contract-to-close service will typically have a lower fee than a package that includes reviews, communication, and support.
TCs who offer add-on services, like listing coordination or admin, may want to opt for tiered or a la carte pricing.
3. Real estate market
Pricing varies by region due to differences in real estate market conditions, transaction complexity, and agent commission structures.
TCs in high-cost or high-volume markets can charge more than those in smaller or rural areas with lower transaction volumes.
4. Competition and industry standards
Researching what other TCs in the area charge helps you set competitive rates. Charging too little can undervalue services, while pricing too high may deter potential clients.
Networking with other TCs or licensed real estate professionals can provide insight into standard pricing.
5. Agent and brokerage clientele
Understanding your target clients is crucial. Solo agents, teams, and brokerages all have different budgets and expectations.
Some brokerages may prefer flat fees for consistency, while individual agents may favor per-transaction pricing, so consider the needs of who you’re aiming to target with your services.
6. Transaction complexity and volume
The complexity of the real estate transactions handled should also influence your pricing. A standard residential sale requires less effort than a luxury or investment transaction with multiple contingencies.
7. Business expenses and profitability
To ensure profitability, you need to factor in your operating costs, such as software, insurance, training, and marketing. Your rate should cover your expenses while allowing room for growth.
Real-World Examples of TC Fees
Below, let’s explore what some real-world transaction coordinators are charging for their services.
First off, in-person hourly rates typically fall between $40 and $55. Virtual TCs charge rates of anything between $7 to $15 per hour. Additionally, TCs might charge from $300 to $800 per transaction.
AgentUp
AgentUp is an on-demand virtual real estate transaction coordination service. They have some of the most qualified TCs in the industry, with expertise in the U.S. real estate landscape.
Their per-transaction coordination fee is $299 per file, and listing coordination starts at $199 per listing.
Transactly
Transactly offers comprehensive TC services to streamline the transaction process. Their services are priced at $49 monthly for one to three transactions per year.
Empower Transactions
Empower Transactions provides TC solutions for agents, teams, and brokers. They position themselves as a provider of highly trained and skilled transaction coordinators.
Their contract-to-close fee is $400 per file, and their concierge plan starts at $3,250 per month for up to 10 transactions.
How to Adjust Your Pricing As Your TC Business Grows
As you grow your business, you should periodically adjust your pricing to reflect your experience, demand, and operating costs. Here’s how you can strategically update your rates:
Increase rates gradually: Raise your prices incrementally to avoid surprising existing clients. Ensure you notify clients before any rate adjustments, and justify increases by highlighting added value.
Adjust for experience and expertise: Charge higher rates as your skills improve and your efficiency increases. Consider premium pricing for specialized transactions—such as luxury or commercial real estate–-and obtain certifications or additional training to justify rate increases.
Review market trends and competitor pricing: Regularly research industry pricing to stay competitive. You can adjust your rates based on local market conditions and the demand for TC services.
Introduce new pricing models: Shift from a per-transaction model to a tiered or retainer-based pricing as your client base grows. You can also offer bundled service packages to provide more value while increasing revenue.
Factor in increased business costs: If you’re hiring assistants or expanding, you need to ensure your fees will cover additional costs. You should also include inflation adjustments in your annual pricing reviews.
The Ultimate Tool for Transaction Coordinators
The right software is one of the most important things you’ll need as a transaction coordinator.
Transaction management software allows you to run a successful and profitable TC business while impressing your clients and allowing you to charge premium rates.
Paperless Pipeline is purpose-built real estate transaction management software designed to help TCs manage the entire process, from listing to closing.
Attract more clients, build your business, and close deals smoothly with the help of our software. Visit our website for a free 14-day full-feature trial to see if our platform is the right solution for your TC business.