Why Should Real Estate Agents Give Their Clients a Closing Gift?
Real estate agents know that purchasing a new house is often one of the largest financial decisions a client will make in their life. Both real estate agents and real estate clients work tirelessly to find the right property, win the bidding wars, and get everything across the finish line. Homeownership is a significant life event for many, and it should be celebrated as such. That's why a great closing gift should be top of mind once you start rounding the last corner of a deal.
Research suggests that homeowners remain in their homes for an average of 10.5 years, so it's important not to view individual sales as a one-and-done transaction. Real estate agents are in the relationship-building business, meaning lead generation is largely fostered through referrals and repeat business. Throughout the homebuying process, you've spent a considerable amount of time with your clients, getting to know what matters to them along with their preferences, hobbies, favorite pastimes, and future goals.
Making the effort to show genuine appreciation for the confidence they've placed in your real estate knowledge by providing a personalized closing gift is both a stepping stone to building a lasting impression and a pivotal part of your real estate marketing efforts. A client who's just sold or purchased a home may not need your services again for a long while. However, their positive reviews on social media and their recommendations of your services to their circle can help you score that invaluable word-of-mouth real estate lead.
15 Closing Gift Ideas for Real Estate Agents
While Amazon gift cards are certainly an acceptable closing gift option, adding a personal touch to your home gift shows you listened to what your clients and truly got to know them. Whether you spend $20 or $200, clients will remember your effort and attention to detail.
1. Bottle of Wine
With all the packing and moving, the last thing your clients may want is more stuff. Instead, give the new homeowners the experience of savoring a fine bottle of wine or champagne. Ask your local wine merchant about the vintage's origin and suggested food pairings, then include that information in a note with your selection. You could also add specialized wine glasses or a food basket of items that complement the varietal tasting notes to the wine gift. At a minimum, you should expect to spend $25 per bottle.
2. Gift Certificate to a Local Restaurant
Whether your clients were the buyers or sellers, they've achieved a goal, and that's cause for celebration. A gift certificate to a new restaurant or a respected establishment offering their favorite cuisine could make for the perfect closing gift, particularly for foodies. Restaurant pricing can run the gamut between modest and exclusive. Just make sure your gift card covers the entire meal and tip!
3. Personalized Cutting Board
Every home should have a good quality cutting board. Acacia, cherry, and maple are standard wood selections that hold up well to constant use. Slate is another alternative for cheese trays. Personalize your gift with the family's name or initials, graphics, or a simple line like “Home Sweet Home.” Cutting boards typically range from $40-$100.
4. Coffee Mugs
A coffee drinker's one special mug is like finding a soft, old sweater tucked away, waiting for the season's first chill. There's comfort in its perfect fit. Whether you choose to personalize a standard mug or select a handmade artisan option, a nice coffee mug makes for a thoughtful thank you gift commemorating the journey you've taken together. The general price range for a mug is $5 to $40. You may want to enhance the gift with a pound of the variety or brand of coffee your client prefers. Quality coffee starts at about $13 per pound.
5. Coasters
A coaster set is another client gift that offers a range of design options. A personalized set with the client's name or initials might also include your name and contact info as a gentle reminder. Another possibility is a handmade artisan set from Etsy chosen to match your client's specific decorating style or interest. Sets of four or six are typically priced between $15-$40.
6. Flowers
Nothing says welcome home like a beautiful bouquet of fresh flowers. Talk with a florist to ensure they create an arrangement that matches the client's personality and style. Men and women alike can appreciate an out-of-the-ordinary display customized specifically for them. Flower arrangement costs vary, so check in with your local florist to find an option that works with your budget.
7. Pet Collar Tags Featuring the New Address
With their focus on house hunting, finances, and moving, pet owners may not remember to update their pets' tags for months after the move. Getting pet collar tags engraved with the new address is a unique gift that helps all members of your client's family transition to their new space. Pet collar tags are available for less than $10.
Pro Tip:
While giving your client a housewarming or closing gift is an accepted but optional gesture, a personal handwritten thank-you note is a must. Don't overlook the importance of this aspect of social etiquette.
8. Gardening Supplies
Presenting a gardening gift basket filled with the essentials is an especially thoughtful gift for the first-time homebuyer. If you want to go the extra mile, consider adding a personalized garden stone. Plan to spend at least $40 each on the gift basket and garden stone.
9. Hardware Store Gift Certificate
Welcome your clients to the world of homeownership with a gift certificate to the local hardware store. Supplying the recipient with options that range from picture hanging kits to power tools, this is one gift card that will definitely come in handy.
10. Personalized Keychains
Help your clients commemorate the purchase of their new home with an engraved keyring. Space permitting, this could also provide an opportunity for you to add your contact information. Be careful with self-promotion, however. You want to choose client-centered gifts with no strings attached. Blatantly branded gifts are a turn-off for clients, and they usually end up in a forgotten drawer or the trash bin. Personalized keychains range in price from a few dollars to well over $100.
11. Return Address Stamp
Help your clients settle into their new address with a custom return address stamp. Providing them with a kit that allows the recipient to create their own stamp plate is a bonus. A stamp kit averages $40.
12. Home Essentials Gift Basket
Moving day is the great equalizer; even the most organized may be hard-pressed to find the elusive screwdriver or hammer when needed. A home survival kit or gift box puts the basics at your clients' fingertips from the very first day in their new home. The tote bag alone is $37. Completing the kit with a tape measure and basic tools could push the price to the $100 range.
13. Spa Gift Basket
Help alleviate the tightness of stress-weary muscles with a spa gift basket. Anyone can relax and enjoy the benefits of a rejuvenating honey almond bath, regardless of their gender. Well-stocked baskets begin at approximately $30.
14. Game Night Gift Basket
Help your clients settle into their new home with a game night gift basket. You may opt for a ready-made version complete with game and snack varieties or put one together yourself with hand-picked selections. Entry basket pricing typically begins at about $40.
15. Local Sport Tickets
This is a splurge gift, but it’d be a welcome surprise for a sports fan who's arrived home after a long journey. Depending on the sport, league, and seating, tickets can range from $10 each to hundreds of dollars.
While there's no hard and fast rule dictating spending limits for closing gifts, the industry standard for gift-giving is between 1%-5% of the agent's gross commission.
A 3% commission on a $300,000 home, for example, is $9,000. In this scenario, 1% of $9,000 is $90 and 5% equals $450. Choosing a thoughtful gift between $90-$450 would be acceptable in this instance.
At the lower end of the spectrum, real estate agents personalizing a gardener's gift bag with the family name etched in stone could spend around $90. Purchasing a couple of artisan coffee mugs with a pound or two of coffee prices out similarly. On the more opulent hand, selecting a gift for each member of the family or scoring coveted seats at a local sporting event places the gift in the upper echelon of the $450 spending category.
Are Real Estate Gifts Tax Deductible?
Keep a daily log of your expenses, including the cost of any closing gifts you purchase for clients. Although you're only permitted to deduct a maximum of $25 for each gift, according to the IRS, maintaining a receipt file and accurate records of all expenses helps streamline the end-of-year tax filing process.
Maintaining an organized accounting system provides you with easy access to the required documentation should you ever receive the dreaded notification of a tax audit. It also aids you as a business owner with making future decisions based on your expenditures and credits.
No matter what you decide to give your clients, providing a closing gift will help you and your customer service skills stay top of mind. With a little bit of thought, some planning, and plenty of insight, your closing gift could become one of the best gifts your clients have ever received.
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