Common Problems Brokers Face (And How Real Estate Broker Management Software Can Help)

According to the National Association of REALTORS®, there are over 1.5 million Realtors in the U.S. This means you’re up against some tough competition as a real estate broker.

Real estate brokers face endless challenges when it comes to running and managing a brokerage. Without the right tools and software, your real estate business can quickly fall behind.

However, real estate software can be expensive and difficult to use. It can also be hard to scale your brokerage with a system that provides growth limitations.

In this article, we’ll unpack some of the biggest problems real estate brokers face and how the right transaction management software can help you overcome them.

14 Challenges Brokers Face That Real Estate Software Can Help With

Let’s unpack some of the most significant challenges that real estate brokers may face when running a business:

❌ Compliance and document management

One of the biggest challenges you face, which can impact your entire brokerage, is ensuring all real estate transactions comply with local, state, and federal regulations.

As you know, real estate transactions involve endless documents, such as contracts, disclosures, addendums, and financial records.

If any required document is missing, incomplete, or outdated, brokers can face legal consequences, fines, or delays in closing deals.

Additionally, manually tracking compliance across multiple transactions and real estate agents is time-consuming and error-prone.

Many brokers rely on paper files, email attachments, or outdated spreadsheets, which increases the risk of misplacing critical documents or failing to meet compliance deadlines. 

When regulators or auditors request records, you may struggle to retrieve them quickly.

✅ The solution

Transaction management software like Paperless Pipeline addresses this issue by providing a centralized, cloud-based document storage system. 

It allows brokers to create custom checklists to ensure that every required document is collected before a deal is closed.

The software can also flag missing documents, and provide instant access to files when needed.

This reduces the risk of compliance violations, saves time, and ensures a smoother audit process.

❌ Lack of transaction visibility and oversight

You manage multiple transactions simultaneously, often involving different agents, real estate teams, and external parties such as lenders, title companies, and attorneys.

Without a centralized system, tracking the progress of each transaction in real-time can become difficult. You may rely on agents providing updates via email or phone calls, leading to inefficiencies and communication gaps.

✅ The solution

Our software provides a dashboard where brokers can see the status of each transaction at a glance. 

You can check whether contracts have been signed, if inspections have been scheduled, or if any pending tasks could delay closing.

By offering complete transaction transparency, our software enables brokers to proactively address issues before they become more significant problems.

❌ Inefficient communication and collaboration

Effective communication among agents, brokers, and your transaction coordinator or admin team is crucial in the fast-paced real estate industry.

However, many brokers still rely on scattered email threads, phone calls, and text messages to coordinate deals.

This fragmented communication increases the risk of misunderstandings, delays, and missed deadlines—which could all result in deals falling through.

✅ The solution

With transaction management software, all communication related to a deal is stored in one place. 

Team members can leave notes, tag others for follow-ups, and track all communication in real-time.

This ensures that everyone involved in the deal stays updated without having to search through multiple email threads. 

Our platform also provides automated notifications and reminders to keep deals running smoothly and on schedule.

❌ Difficulty managing agent commission and payments

Calculating agent commissions, tracking payments, and ensuring that commissions are distributed accurately can be complex if you’re not using the right real estate tools. 

This is especially true for brokerages with multiple commission structures or splits.

Errors in commission calculations can lead to disputes, delayed payments, and even loss of agent trust.

✅ The solution

With our robust Commission Module, we help brokers automate commission tracking and calculations.

The software can be customized to reflect different commission structures, ensuring that payments are calculated accurately based on the agreed-upon terms. 

You can also generate commission reports, and streamline the entire commission disbursement process.

❌ A slow and cumbersome transaction process

Traditional transaction processes involving paper files, manual signatures, and back-and-forth emails can be slow and cumbersome.

These inefficiencies not only delay deal closures but can also frustrate clients and the real estate professionals you work with.

✅ The solution

Real estate brokerage software streamlines the entire transaction process, enabling brokers to manage everything digitally.

Documents can be uploaded, reviewed, and approved online, reducing the reliance on paper files.

Our e-signature integrations allow contracts to be signed quickly and easily from any device, eliminating the need for in-person meetings or printing and scanning paperwork.

This speeds up transactions, improves client satisfaction, and enables agents to focus on closing more deals.

❌ Lack of performance insights and reporting

Real estate brokers need access to data-driven insights to make informed business decisions but may struggle to gather and analyze key performance metrics.

Without clear reporting, tracking agent performance, identifying bottlenecks, or evaluating transaction trends becomes difficult.

✅ The solution

Our software provides robust reporting and analytics tools that give brokers real-time insights into their business operations.

You can generate reports based on transaction volume, agent performance, commission payouts, and compliance issues.

This data helps you optimize your processes, identify top-performing agents, and make strategic decisions to grow your real estate brokerage.

❌ Security and data protection risks

Real estate transactions involve a lot of sensitive information, including personal client data, financial records, and legal documents.

If this information isn’t stored securely, brokers risk data breaches, identity theft, or compliance violations. If you’re not compliant or your brokerage experiences a data breach, you may be heavily penalized or have to pay a hefty fine.

✅ The solution

Transaction management software offers secure, cloud-based storage with encryption and controlled access. 

Brokers can set permissions to ensure only authorized staff can access certain documents. 

Additionally, the software maintains an audit trail so brokers can track who accessed or modified documents, providing an added layer of security and accountability.

❌ Poor client experience due to disorganized transactions

Clients expect a smooth, efficient, and transparent home-buying or selling process. 

When brokers and agents rely on outdated methods, such as paper-based document handling, slow email communication, and disorganized transaction tracking, clients become frustrated.

Missing paperwork, unclear timelines, and last-minute scrambling to meet deadlines can impact client trust and lead to negative reviews for your business.

✅ The solution

Paperless Pipeline improves the client experience by ensuring that transactions are managed efficiently. 

With digital document storage, e-signature integrations, and automated notifications, clients can receive updates and complete necessary paperwork faster.

Brokers and agents can provide clear timelines and respond to client inquiries quickly, creating a seamless experience that increases client satisfaction and potential referral opportunities.

❌ Lack of remote access to critical transaction data

Many brokers and agents work remotely or on the go, meeting clients, showing properties, and handling negotiations outside the office. 

Traditional transaction management methods, which require physical paperwork or an office solution, make accessing important documents and updates difficult when working in the field.

For example, if an agent forgets a key document at the office or needs to retrieve information while in a client meeting, delays and inefficiencies can occur.

✅ The solution

Paperless Pipeline’s cloud-based software means brokers and agents can access their transactions from any device, anywhere.

Whether in a client’s home, at a coffee shop, or while traveling, they can log in to view documents, update transaction statuses, and communicate with team members in real-time. 

This level of accessibility ensures that transactions continue moving forward, regardless of your location.

❌ Difficulty standardizing transaction processes across teams

Maintaining consistency in transaction handling can be challenging in brokerages with multiple agents, teams, or locations.

Different agents may follow varying processes without standardized workflows, leading to inconsistencies, inefficiencies, and compliance risks.

Some agents may forget to include required documents, while others might use outdated forms or fail to follow established best practices.

✅ The solution

The right all-in-one solution for transaction management allows brokers to create standardized workflows that ensure every transaction follows the same steps.

Automated checklists and custom templates guide agents through each stage of a transaction, ensuring all required documents are collected and compliance requirements are met.

This consistency improves efficiency, reduces errors, and creates a more professional and organized brokerage operation.

❌ Missed deadlines and poor task management

Real estate transactions involve numerous deadlines, including contract contingencies, financing approvals, inspections, and closing dates. 

When agents rely on manual tracking methods such as handwritten notes or calendar reminders, important deadlines may be overlooked, leading to delays, penalties, or even deals falling through.

This could frustrate your clients, and you could lose out on significant revenue if your deals don’t close.

✅ The solution

Paperless Pipeline helps brokers and real estate agents stay on top of deadlines with automated task management and reminders.

Brokers can set up task lists and assign deadlines for each stage of the transaction, and our system will send alerts when critical due dates and milestones are approaching.

This proactive approach ensures all necessary steps are completed on time, reducing stress and minimizing the risk of costly delays.

❌ Struggles with agent accountability and performance monitoring

Brokers need to track agent productivity to ensure that all transactions are handled efficiently and that they’re meeting their goals.

However, without a structured system, it can be difficult to monitor which agents are closing more deals, which are struggling, and who may need additional training or support.

✅ The solution

As mentioned earlier, our solution provides built-in reporting and performance-tracking features that allow brokers to monitor agent activity in real-time.

Brokers can see how many transactions each agent has completed, review their compliance history, and identify areas for improvement.

These insights allow brokers to make data-driven decisions to support agent growth and enhance overall brokerage performance.

❌ Difficulty retaining top agents due to inefficient processes

You’ve put a lot of resources into how you recruit agents, so you want to keep them on board. 

High-performing agents want to work in a brokerage that supports their productivity and efficiency.

Top agents may seek opportunities elsewhere if your brokerage relies on outdated systems, slow transaction processing, or excessive paperwork. 

Losing skilled agents to competitors can hurt your brokerage’s reputation and revenue stream.

✅ The solution

By implementing a solid system, brokers can create a seamless, efficient work environment that top agents feel comfortable in and appreciate.

Faster transactions, automated workflows, and streamlined commission tracking and payouts reduce frustration, enabling agents to focus on closing their deals.

When agents feel supported and see that your brokerage is investing in robust technology that supports them and their work, they’re more likely to stay and contribute to your company’s success.

❌ Problems with scaling your business

As your brokerage grows, managing a higher volume of transactions, agents, and paperwork becomes increasingly challenging. 

Traditional transaction management methods don’t scale efficiently and can lead to operational bottlenecks.

✅ The solution

Paperless Pipeline is designed to scale with real estate brokerages of any size. Our platform supports unlimited users, provides cloud access from anywhere, and automates repetitive tasks to improve operational efficiency.

By reducing manual workload and streamlining workflows, brokers can expand their businesses without being overwhelmed by administrative tasks.

The Ultimate Software Solution for Real Estate Brokers

Real estate brokers face countless challenges, from managing compliance and transaction oversight to ensuring seamless communication and scaling their businesses efficiently.

Without the right tools, these obstacles can lead to missed deadlines, frustrated clients, and increased operational costs.

Paperless Pipeline is your all-in-one platform for eliminating inefficiencies, streamlining transactions, and helping you stay organized with these top features:

• Centralized document management: Organize, retrieve, and store documents related to transactions in a secure, cloud-based system, ensuring nothing gets lost.
• Automated compliance tracking: Set up required document checklists and receive alerts for missing or incomplete files to avoid compliance issues.
• Real-time transaction oversight: View the status of every transaction at a glance and track progress from anywhere.
• Seamless communication and collaboration: Keep all transaction-related discussions in one place with notes, mentions, and notifications.
• Automated commission tracking: Easily calculate commissions and generate reports to ensure timely and accurate agent payments.
• Task management and deadline alerts: Assign tasks, set deadlines, and receive reminders to keep transactions on schedule.
• Scalability and remote access: Manage a growing brokerage from anywhere with a platform that scales as your business expands.
• Secure and compliant record-keeping: Protect sensitive transaction data with robust security features and maintain an audit trail for easy access during audits.

Don’t let outdated processes slow down your brokerage. Try Paperless Pipeline for free for 14 days to see how our software can transform how you manage transactions and drive efficiency across your team.