The term Transaction Management is so confusing for most people that I thought it appropriate to add a little clarity. It seems simple to me (only because it’s part of my DNA), but many people mistakenly consider brokerage and transaction management one and the same. Some have described transaction management as brokerage on steroids, others call it managed brokerage, but each of these descriptions lacks certain foundational truths. So, what is transaction management?

First, the overarching textbook definition: transaction management is a consistent, repeatable, reportable, measurable process to coordinate multiple transactions in multiple markets and oversee the field execution of real estate deals. Let’s look at the three dimensions of transaction management.

First Dimension: Consistency. Managing brokerage resources from various real estate firms alone can be difficult. Now imagine taking all the input from these disparate resources and trying to make them look uniform. It is next to impossible. However, it is the job of a transaction manager to provide the client with a consistent process. This requires two things. First, it requires frequent interaction between the transaction manager and the client to define what’s needed. More important, providing a consistent process requires the use of standardized management tools. These tools can include formal broker-engagement letters, standard listing agreements and scope-of-services templates, uniform market report formats and financial analyses. With these tools, the transaction manager can ensure that the field broker hits the ground running. Moreover, the TM can then continuously improve the process in place, making sure it remains viable for the client.

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