There is a long-standing discussion about whether agents should give their clients real estate closing gifts. Of course, we won’t settle the matter here. Although it would be ideal to come to a single conclusion that would apply to all agents in all circumstances, this is not the main goal.
The question that should be asked is how can agents build a strong relationship with clients after a closing, and is gift-giving a part of that?
You are the only one who can decide what is best for your business and your clients. Let’s start with the objections.
Closing gifts
When a real estate agent has successfully helped their client buy or sell a home, the agent will give them a closing gift as a gesture of appreciation. High-end renters who are leasing luxury units can also be given them.
Saying “thank you” is a simple way to show appreciation for someone’s business. It also has many benefits for the person giving it. Saying “thank you” after closing a business deal is a small way to show appreciation, but it can have a big impact over time.
The 2 main arguments against giving real estate closing gifts
The point of giving
A real estate closing gift serves no purpose. Or so the argument goes.
What are the benefits of giving your clients a gift after closing? Is it to keep up with expectations? To give just because every other agent gives? To keep you at the forefront of your clients’ minds?
Those are valid reasons to give. However, this first objection makes us question all of those reasons and whether gift-giving is really effective. If not, what’s the point?
It isn’t necessary
The whole concept of a service provider giving a gift to the beneficiary after a job well done is unique to real estate. In other industries, it is not common for the service provider to give a gift to the client after the job is completed. It’s not a common practice in any other industry.
For example, doctors, hairdressers, accountants, plumbers, lawyers do not give gifts to their clients after they provide their services. Perhaps because the service is the gift.
Besides, aren’t real estate closings simply another business transaction? You made the sale. In return for your services, you were paid a percentage of the sales price of the home. All parties are satisfied with the outcome. The end.
If we follow this logic, we see a closing gift as just a gift. This means that it is not necessary, it is a good thing that is not expected, and it is an additional thing. You don’t have to do it, but it might be a kind gesture or helpful for keeping people.
The best reason to give real estate closing gifts
Yes, gifts show appreciation. When you’re considering gifting a client, aren’t you really mostly thinking about what’s in it for you? Although it may seem like the right thing to do, gifting a client is mainly done with the intention of receiving something in return. It may not always be purely altruistic. Some people may have hidden intentions when they give closing gifts to Realtors.
There’s nothing bad or wrong with that. You can openly admit that you are hoping to stay in the client’s mind or that you are hoping for future referrals.
It’s important to be aware of the reason you’re giving a closing gift so you can be thoughtful about what you select.
Maintaining strong relationships with your clients is essential for success in the real estate industry. It’s how you capture and convert leads. It’s why you get the most robust CRM. This is the best reason to give real estate closing gifts.
Why give closing gifts?
It’s a good question. Not every agent does it.
1. Show your appreciation
Customers today want to feel valued and appreciated more than anything else. They’re tired of being just another anonymous person for a large company to exploit.
There are a million realtors to choose from. Technology has made it possible for businesses and entrepreneurs to quickly connect with potential customers online. Lack of personal service and appreciation can quickly lead to customers feeling unimportant and create a negative opinion.
If you make your customers feel like they’re just another meal ticket, they’ll take their business elsewhere—even if you offer the best price.
You’ve been busy in the mechanics of the transaction. Do you make an effort to show your clients how much you appreciate their business? A closing gift is a great way to show your appreciation and make a good impression.
2. Stay top-of-mind
The best closing gifts help realtors stay top of mind with their clients for many years.
Email and social media can save on marketing costs for realtors, but it can still be expensive. If a business can get repeat customers, it will be cheaper, more sustainable, and easier to close deals with those customers, leading to more profits. It’s hard to win clients. Once you do, never let them go.
Unless you’re easy to contact, there’s a good chance the person who liked you will forget about you. Don’t let that happen. Your gift should be something that they can enjoy every day, like a subscription to a website or a magazine.
3. Referrals
A gift that’s always available and in plain sight in their new home means they can easily give you referrals and hand over your contact information. It also helps you to stay visible and continually brands you with their family, friends, and other visitors.
4. Gaining good online reviews
Businesses live and die by their online reviews today. To get great reviews from your clients, you need to do more than meet their expectations.
The people you did the work for might not understand all the effort you put in. You don’t have to spend a lot of money to make someone feel special. A simple, affordable gift can go a long way.
5. Creating positive positioning, mental anchors and memories
Even a small gift can be powerful. Your name and brand will be constantly associated with the moment they got their own home. That’s a powerful emotion.
A gift that helps create great new memories is even better. While your clients may not remember all the financial details of your work together or how you saved the closing, they will remember how they felt about you.
How to give real estate closing gifts
If you have decided that giving closing gifts is a good idea for your business and your clients, you should keep in mind that the way you give the gift is as important as the gift itself. Here are some helpful tips.
Choose the best time
Shortly after closing you’re already top-of-mind with the client. Your name will come up in conversations with anyone who asks about your clients’ experience buying or selling their homes.
If you provide excellent customer service, then your clients will most likely praise you to others. If you haven’t left a good impression on the client, no expensive gift will make them think better of you.
If you want to offer a closing gift, you may want to wait six months to a year. The best way to make sure your gift is well-received is to send it after you’ve already left their life.
You could give the couple an “anniversary gift” of a note wishing them a happy anniversary on the sale or purchase of their home.
Make sure to thank your client for their business, and let them know that you appreciate their trust. Ask them to spread the word to anyone they know who might be interested in buying or selling property.
This present is not only for them, it is also for you. By doing this, you have just given yourself a couple more months in that client’s memory.
Don’t use marketing collateral as your gift
It is more likely that your client will be able to tell if a gift is genuine or if it is a cheap item that was given for marketing purposes. A gift like that could make them remember you negatively the next time someone asks if they know any good real estate agents.
Real estate agents sometimes give their clients a branded gift that can be used as a marketing tool. These gifts are not subject to the IRS gift restrictions clause. That’s fine.
Don’t give gifts that are promotional in nature. You don’t want to damage the feeling of altruism and personal connection that you’re trying to create.
Most people use the gifts from real estate agents as a way to thank them for their help. This means that if you don’t throw them away, they will end up in the attic. There is a hope that the item will be seen by someone at a thrift store.
Make it personal
Think about what each of your clients would like as a gift. If you want to develop a great relationship with someone, it’s better to avoid giving them thoughtless gifts.
For example, consider the following:
What are their likes and dislikes?
A gift that is personalized to their hobbies and interests is a great way to make a good impression. A gift that is not personalized could make it seem like you do not care about the person.
What kinds of food and drink ideas would work?
Be cognizant of food allergies. A box of chocolates is not the best gift for diabetics or dieters.
The same holds true for alcohol. If your client is carrying a sobriety coin, don’t give them alcohol.
What is home life like for them?
The best closing gift for an elderly retiree might be something to make their life easier, while the best closing gift for a young married couple with a newborn might be something to help them with their new baby. The type of gifts you give to a large family with three dogs and a cat may need to be different from what you give to a single college-aged first-time homebuyer. The former may need items like pet food and toys for the animals, while the latter may need things for their home, like cleaning supplies or kitchenware.
What will they actually use?
Thinking practically can give you some great ideas. The main benefit of giving them something they can use repeatedly is that you’re more likely to stay in their minds for a long time.
You get the idea. Choose a gift that will show them they are not just another customer.
A successful closing gift should be:
- Memorable.
- Be Long Lasting.
- Be Used Around Others.
- Be Relevant.
- Be Remarkable & Unique.
- Be Enjoyable.
Don’t give a toilet plunger, stress ball, or Home Depot gift card as a present unless you are sure the person will appreciate it. Don’t you want your employees to keep their stressful moments to themselves?
Conclusion
You have a big responsibility to your clients as a realtor. You are an expert in many different areas, but you also excel in providing excellent, individualized service to each of your clients. Repeat business and referrals are always a better option than finding new customers because they are cheaper, more sustainable, and easier to close.
