How to Set Your Rates in your TC Business
May 4, 2023
The demand for real estate transaction coordinators is higher than ever. More and more agents are seeing how useful it can be to have a professional on their side to take the load off.
Of course, this brings the challenge of knowing how to set your rates. It can be difficult to know where to start the process of making pricing decisions. You might be overly cautious not to gouge your clients but you also deserve fair compensation for your knowledge and time.
Remind yourself why agents need you.
Give yourself this exercise: outline the benefits you offer your clients. While this probably sounds like a lot, the bottom line is that you are selling a way to save an agent’s time. Agents can spend an average of 40 hours on a single transaction. Your job is to save them time which will in turn allow them time to pursue more clients of their own. But you offer more than that: peace of mind, a job well done and better relationships with clients.
Now that you have considered your value and what the agent needs from you, it’s important to discuss the factors that you can put a price on. You are charging for the price of the technology you use, your knowledge of using the technology and your time.
Factors to consider when setting prices:
- The Types of Clients You Work With. Setting your rates can depend on the type of client you wish to work with. It’s important to consider if you are going to take on clients only in your state, or both in and out of state. You can also decide to work with only commercial or residential property clients and adjust your rates depending on the magnitude of the transaction.
- Your Experience. It’s important to remember that there is no perfect rate and you are always free to change them at any point in the year. Take a look at what other transaction coordinators are charging in your area. Research and compare rates and services to give you a good starting point. It is also a good note to check out LinkedIn and Facebook for additional ideas to consider. Of course, you should reevaluate your rate periodically — like when you gain experience, business or knowledge from online classes.
- Offering different service packages. What are you prepared to give your clients? It is a good idea to put together a basic list of services you are offering. What’s even more eye-catching is also offering a “deluxe package.” Make your business stand out by offering extra perks for paying the higher price. Here’s an example.
One last thing to think about when setting your rates is determining how and when you are going to charge your clients. Make it clear and make it consistent. There are many options that come with making this decision. Some TC’s charge a lump sum at the beginning, others charge at project completion. Some charge on the basis of rolling contracts monthly and others hourly. Find what works best for you and keep it consistent!
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