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Transaction Management Solutions: Get Smoother Transactions
The latest transaction management systems make going from contract to closing easier than ever.
Transaction management is back on track, inviting real estate professionals and their brokers to take another look at a concept that debuted a decade ago then faded away. Back then, there was more promise than practical benefits in systems for organizing all the details, documents, and correspondence that drive a successful closing.
What’s driving the renewed interest? Mostly the comfort level that many now feel about working online. Although transaction management software is available, most solutions are Web-based services, creating a central spot where all parties to the deal can collaborate, contribute, and monitor progress.
How You Can Use It
For sales associates and managers, there are many benefits. With a transaction management system, you can:
- Create an organized, efficient workflow, minimizing chances anyone neglects their responsibility.
- Set up a centralized digital library and archive of relevant documents.
- Alert and allow clients to check in on completed tasks and on what needs to be done.
- Log and stamp all activity and correspondence for an audit trail of the entire process.
- Relieve the sales associate of labor-intensive chores while promoting them and their company as market innovators.
As such, real estate companies are taking notice, and many have — or are in the process of — adopting or considering a transaction management system for their offices.
For example, this spring, the estimated 5,000 brokerages and 50,000 associate members of the Arizona Association of REALTORS® will be encouraged to embrace the SureClose system developed by Stewart Transaction Solutions. The offer follows a three-year evaluation.
“Transaction management is the way of the future,” says Craig Sanford, CRI, with Realty Executives in Phoenix. As 2006 past president of AAR, he spearheaded the group’s investigation.
“For brokers, these systems reduce the manpower required for file management and the likelihood of errors,” he says. “Agents appear more professional because of the way they can get data to their clients. Eventually buyers and sellers will see the benefits of working with a company with one of these systems in place.”
The ‘Interactive Solution’
Kathy Lambert, contract administration manager with the Atlanta-based real estate investment company Novare Realty, has run more than 2,300 transactions representing 12 accounts through the company’s Settlement Room system.
“It allows me to oversee the entire process and has become our ‘go to’ place to find any document on any transaction,” she says.
She describes it as an “interactive solution for communication among agents, buyers, lenders, closing attorneys, title companies, and our internal staff. ... Since all of our data is imported daily, we are able to keep our contacts in each transaction up to date and give the best service possible,” she adds.
However, it’s not just larger companies with multisite operations that can benefit from the technology. In Middletown, Del., broker/owner Jim Young invested in Settlement Room, on a smaller scale, when he launched Colonial Real Estate as a virtual office last year. The company’s 14 agents work from home, entrusting transactions to the firm’s processing manager once a contract is signed.
They scan their documents into the system. From there, the processing manager takes care of everything to guide the transaction through closing.
“Clients have always complained about a lack of communication,” Young says. “So here’s an organizing tool which also gives them feedback, and allows them to check on the status of their deal, whenever they want. But for me, one of the biggest benefits is that there are no more file cabinets. Everything about the transaction, it’s all in the system.”
Transaction management can be a turnkey solution to increased efficiency. But here are some questions to ask before jumping in:
1. Are you ready for the change? Present practices will temper the pace and scope of the transition to transaction management, at least initially: Are you already working with electronic forms and contracts? Collaborating and communicating online? Have a well defined workflow for managing transactions?
2. Which vendor should you use? The company behind it is as critical as the solution. Start-ups, with limited staff, may not be able to provide adequate support when it’s needed most. Ask about number of users, years in business, and check references.
3. Should you use software or a Web-based service? Software is best for the individual or small office seeking a system for organizing and tracking details and documents. The larger the staff, the more offices, and the more people you’ll want to invite into your system. Then, you're likely better off with a Web-based solution.
4. What training will be involved? If sales associates aren’t already technologically inclined, you’ll have trouble forcing them to embrace transaction management. Vendors, and those who have made a successful transition, say training and assigning dedicated specialists — whether you call them transaction coordinators or process managers — make all the difference.
5. Should you do a phased rollout? Don’t overwhelm all parties to a deal with new responsibility all at once. Make sure one group is comfortable with transaction management before adding the next. Start in-house, then invite the outside providers who help move deals along. Finally, encourage client participation, when all the kinks are out of the system.
6. Can you use it as a recruiting tool? A transaction management system, once up and running, can be a marketing tool that sets the company apart from competitors, attracts new staff, and invites repeat business and referrals from all who have experienced the convenience of this approach.
One Company Moves to Paperless Transactions
Five years ago, Prudential Locations, based in Honolulu, began its transition to Web-based transaction management with the purchase of Fidelity Real Estate Solutions’ TransactionPoint. Last year, 750 sales, generated by the firm’s 75 associates working in seven branch offices, moved through the system, without a hitch.
“We wanted to provide our sales associates the tools they need to operate more efficiently,” says Dan Tabori, executive vice president for business development. Fidelity’s presence in Hawaii, and the system’s flexibility, sold the company on its approach.
Steve Tam, vice president for sales directly responsible for transaction management, oversees a staff of five transaction coordinators, all licensed real estate professionals, and two assistants in the company’s main office.
“As soon as a contract is signed and enters escrow, the agent hands it off to us,” he says. “The system gives us a road map, a standardized business model for handling every transaction. We take care of 99 percent of what an agent would normally do to move from signing to closing.” They are charged for that convenience, a fee they willingly pay.
Buyers, sellers, and vendors are also pleased with the experience. “Clients today are used to working and banking online, and they expect this kind of environment,” Tabori says. “Everyone involved is able to keep up with the transaction, and know exactly where we are. What we need to do is defined and tracked by the system, so we’re able to reduce our risks.”
Transaction Management Product Guide
Software
Transaction management can be a standalone software application or one component of an integrated suite. In either case it sets you up with a system for scheduling, organizing, and tracking all activity required for a successful closing. Reports and updates can be shared with others, but you must take that initiative.
Telluride Software
209-966-7731
$375.95 for single-user version; multi-user discounts available.
For Windows PCs, a real estate software solution for managing contacts and listings, with a transaction management function. You can assign documents, tasks, or disclosures required for each property. It provides daily prompts reminding you what needs to be done for each transaction and handles commission disbursements, splits, and fee reporting after closing. More than 60 reports can be shared via e-mail as PDFs.
EZ Coordinator
888-351-9500
$495 for single user; multi-user discounts available.
For Windows, this transaction management system contains contact management functions and maintains user-defined “master checklists” of tasks, documents, and schedules for closing. Color-coded status indicators alert users of completed tasks and what needs to be done. Transaction reports can be e-mailed, printed, or faxed, and you can import and export contact information and schedules with Microsoft Outlook.
Web-based Solutions
The handful of online transaction management solutions combines the functionality of software with the advantages of Web-based services. All parties to the transaction have instant access to the latest information, as allowed by the user. These systems also create a centralized database of all documents and contracts, which easily can be viewed, shared, or retrieved, using a Web browser, and then digitally archived.
AgniTEK, LLC
979-260-8324
$19.99 per month for individuals; $9.99 per transaction for brokerages
A scalable transaction and document management solution with integrated modules for managing contacts, vendors, tasks, documents, properties, advertising, and transactions. User-defined rules for scheduling, tasks correspondence, and commission calculations. It includes daily updates on the status of transactions with task reminders, and it also allows broker control over agents' access to features and content. It synchronizes tasks, calendar, and contacts with Outlook and creates digital archive of documents.
PropertyInfo Corp.
866-608-6657
$129.99 annual subscription.
A single-user version of this scalable transaction management platform that offers a flexible solution for online document management and sharing, task scheduling and monitoring, and collaboration among parties, as restricted by the user. It can be branded with the subscriber’s company name, logo, photo, and contact information. It integrates with the eClose system for virtual closings. A brokerage version creates a collaborative Web space for a paperless transaction that increases productivity while streamlining management and communications.
RELAY Transaction Management System
REBT LLC
866-766-7328
$149 annual subscription per agent, up to four; volume discounts available.
*REALTOR Benefits® Partner: special pricing available
It creates a branded Web site for transactions where all parties can collaborate as the transaction progresses toward closing, as allowed by user. It includes easy import of WINFormsOnline and ZIPFormsOnline digital documents and forms, automated e-mail notification of completed tasks, and a transaction history with a log of all communications and activity for archiving. The program also has a CD creation module for distributing transaction history to interested parties. A scalable version for brokerages allows the monitoring of transactions of individual agents.
Fidelity Real Estate Solutions
800-996-6547
$249 annual subscription for a single user.
This solution is offered in a standard version for individuals, a professional version for brokers, and SoftPro for title companies. It provides a system for automating transaction management from listing through closing and integrates with the company’s AgentOffice suite and popular electronic forms and contracts software. You can import transaction information from the MLS or other software programs and then schedule and track activity required for each. It includes automatic logging of correspondence and completed tasks to create an audit trail and provides a digital library and archive of documents scanned and uploaded to system. Parties to a transaction can be assigned a password for restricted access to monitor the status and fulfill tasks.
SettlementRoom, LC
888-661-6600
$299 bronze package for 20 transactions; larger volume bundles available.
It creates a secure Web site for each transaction for tracking progress, uploading documents, completing tasks, as allowed by user. The program has customizable action plans and scheduling with a group calendar, e-mail reminders as each task is completed, and you’re able to upload or distribute documents, and content to/from Web site. One click orders by fax or e-mail can be distributed to authorized vendors. It shows feedback for tracking and showing reports and logs all activity to create a time/date/identity stamped transaction archive.
planetRE
Base price $350 per month for offices with up to 20 agents
A transaction management module of the planetRE suite of Web 2.0 broker applications for transaction management, broker compliance, and risk management. A scalable collaborative platform for customized workflow management. It can handle scheduling, delegating, monitoring, and logging tasks, documents, and communications. It includes a built-in planetRE Vault that provides secure long-term storage of transaction data and documents.
Johnson Controls
203-327-7272
Base price approximately $25,000, based on number of users, projects, and transactions.
A hosted integrated suite of Web-based commercial real estate projects and portfolio management solutions for large companies, with a transaction management module. Scalable and customizable tools for handling multiple transactions and comparing results. It creates an automated workflow management and monitoring system to ensure schedules are maintained and activities are completed. It contains user-defined access rights for Web-based collaboration and information sharing, as well as user-defined reports for any aspect of transaction or other activity.
Transaction Document Archiving
PowerDox Media Branding and Archiving Solution
SourcingPoint Solutions
702-388-9940
$49.95
A service for scanning and archiving all documents related to a transaction on a CD for distribution to clients and other interested parties. It creates a customized branded interface on a disc. Recipients can retrieve and view documents in a window, which displays provider’s company logo, photo, and contact information.
Prices are the vendors’ suggested retail prices and are subject to change. This list isn’t comprehensive; NAR doesn’t evaluate or endorse these products and isn’t responsible for changes in product info.
Michael Antoniak is a journalist and technology expert with a focus on real estate applications. Antoniak also writes about real estate technology at his blog, RealTechTools. He can be contacted at antoniak@dtccom.net.