Real Estate and Mortgage

How Much Should A Realtor Spend On A Closing Gift?

realtor closing gift

Closing Gift Ideas For Realtors and Clients To Win Loyalty

Buying your client a realtor closing gift is a nice gesture to say thank you for allowing them to assist in the buying or selling of a home.

Before we even get into anything to do with a closing gift it’s important to note that it’s not a referral fee gesture.

By that I mean a realtor shouldn’t give the client a closing gift as a push for referrals.

There are six areas that I want to address with-in the real estate industry between a realtor and client.

  1. Do I get my realtor a gift at closing?
  2. How much do I spend on a realtor closing gift?
  3. What is a good gift to get your realtor?
  4. Should a realtor buy a client a closing gift?
  5. How much should a realtor spend on a closing gift?
  6. What are the best closing gifts from a Realtor?

Real estate is a cut-throat business and to get the next client, sale, or purchase a realtor must go the distance.

Some realtors have gone as far as to cut their commission to secure their next client.

That could be the difference of thousands of dollars however always consider the agent before the money.

A crappy agent may offer to take a lower commission but be the worst at trying to help you buy a house or sell your house.

Closing Gift Etiquette- Is there such a thing?

Closing gift etiquette

There are many misconceptions when it comes to a closing gift and whether it is proper etiquette.

  • The more expensive the gift that a realtor gives the better
  • Less is better
  • Don’t buy a closing gift, it’s not worth it
  • Clients will send referrals when you give a closing gift
  • Your realtor will do more for you the next time around if you give them a closing gift

I believe to win a client’s loyalty a realtor will offer a closing gift and in return, the client may do the same.

Why would the client buy a closing gift for their realtor?

Well, there’s more to it than meets the eye and a gift doesn’t necessarily always mean spending money.

Importance Of A Realtor Closing Gift For A Client

Did your realtor give you a closing gift?

When I bought my first two houses in the UK I did not get a closing gift from my realtor.

I suppose I never gave much thought to it as it wasn’t something that I was aware of.

We both continued through the process of buying and selling and went on our way.

Of course, my realtor like any other asked me to pass along any referrals that I might have and provided me with business cards.

I was thankful for the dedication of my realtor especially since I had used him for all my transactions over the years.

When Mrs. CBB bought her first house in Ontario her realtor gave her a ceramic jar filled with Biscotti as a closing gift.

It wasn’t something she had expected however she said it was nice to get a note from her realtor thanking her for the business.

The cookies for her meant that he went the extra mile in hopes that she continues to use him for future transactions.

That makes sense is a smart marketing idea for the realtor but from a personal aspect, it’s building relationships.

Home Decor As A Realtor Closing Gift

When Mrs. CBB and I bought our current home our realtor gave us two framed art pieces.

The only problem with decor giving is that it might not fit the interior design idea of the client.

Continuing The Relationship Between Realtor and Client

As well, without missing a year in 11 years of homeownership our realtor has done the following:

  • Christmas Cards
  • Christmas Gift for both our son and us
  • Refrigerator Calendar
  • Invitation to Christmas Gathering
  • Taken us out for dinner
  • Home visit to see how we were doing
  • Monthly Real Estate Update Newsletter
  • Any time we have a question she answers it

Like, wow!

That’s what I call a realtor who cares about her clients and will go the extra mile to keep them.

The financial realization of the client relationship may take years before a client buys and sells again but it’s that bridge the realtor holds onto.

Often you might find realtors who make it big-time pass the process to their associates and they miss that personalization.

With our realtor, we enjoy all of the above more so than that closing gift because building that relationship is critical.

Realtors R Us

House for sale

The real estate agent industry is crowded and there are lots of fierce competitors when it comes to picking the right realtor.

Every city, town, or village in Canada has loads of real estate agents to choose from.

This is all the reason for a realtor to shine bright so they stand out among the rest.

As a realtor, it’s important to shine in all aspects of the buying and selling process of your client’s home.

Although some people believe that realtors don’t work hard enough for the money they earn it’s not an easy process.

For Sale By Owner With No Closing Gift

Sure, you can sell your house without a realtor and save the costs but not everyone has the time or willingness to learn the process.

Related: How to successfully host an open house for sale in the winter

This is why realtors are in demand but for those who want to skip the realtor costs going it alone is worth the hassle.

Having to deal with all the front-line action from other agents, potential buyers and legal matters are time-consuming.

Real Estate is a time-sensitive process where your realtor has to be on their toes to buy or sell a house for their clients.

Sometimes this means working through the night or showing homes and hosting open houses for days on end.

Related: Are real estate open houses worth it?

You don’t work a 9 to 5 job and have 40 hours a week in the real estate business.

On the odd occasion, you will have that fast sale or purchase but for the most part, you’re mud wrestling to the end.

However, realtors love the challenge and are typically people who are always on the go.

Money Hungry or Lazy Realtors

Like every industry, some realtors are lazy and hope that the buying and selling process falls nicely into place.

Related: How to protect your open house for sale from theft

I’m sure many of you can relate to knowing or hiring an agent who was not the right fit for you.

There are even realtors who can attest to knowing other realtors who don’t put near as much effort into their career to get ahead.

As the saying goes, “You get out as much as you put in” and that goes for your career no matter which industry you are in.

5 Closing Gift Ideas From Realtor To Clients

Stand Mixer

As a realtor, you are running a business that relies on building relationships, return clients, and referrals.

Building your client base will take time and how you present yourself along with work ethic will show.

Whether you decide to give your clients a closing gift depends on your personality and desire to grow your business.

Not all realtors give a closing gift however you can bet that your client will always remember the gesture.

Cost of A Closing Gift

Front door mat

How much should a realtor spend on a closing gift?

Some people may say it depends on the client but you don’t have to spend a fortune to say thanks.

I don’t think clients will ditch you because you didn’t buy them a new flat screen tv to put in your new home.

However, it has been done and for high-end clients, some realtors stop at nothing to make them happy.

Everything from new appliances, expensive bottles of wine, club memberships, art, decor, and more have been given as a closing gift.

Realtor referrals are everything after all which means keeping the client happy.

Putting a value or number on what a realtor should spend on a closing gift is difficult.

A realtor might consider how long they’ve been in the business, clientele, and the price of the home.

I don’t think you can go wrong with a hand-written letter and a gift between $100-$300 for most clients.

Let’s have a look at 5 closing gift ideas for realtors to give their clients.

Whether you decide to spend $2000 or $100 on a closing gift for a client depends upon the relationship you’ve built.

  1. Fancy Mikasa wine glasses and a bottle of champagne or wine
  2. New microwave or other kitchen appliances
  3. Smart Technology (Alexa, Ring Doorbell, Arlo Pro Indoor or outdoor camera system
  4. Gift Card or Gift Certificate to a fancy restaurant
  5. Welcome mat “Our Happy Home”

5 Realtor Closing Gift Ideas From Client To Realtor

Scookies Recipe

Should you give your realtor a closing gift?

Realtors enter into the profession of buying and selling homes for their clients because they enjoy the process and are passionate about real estate.

You can give your realtor a closing gift if that’s what you’d like to do however remember you’re the paying client.

They are doing their job and you’re paying them to do it so essentially you’ve given them a closing gift, a purchase, or sale.

If you want to send a thank you to realtor then simply write him/her a hand-written thank-you letter.

In the letter, share your appreciation for their hard work by listing areas they excelled at during the buying or selling process of your home.

Alternatively, you can offer your realtor baked cookies, a cake, or use your skills to build or create something for them.

Most of all, real estate agents would love if you referred them to your friends and family because you believe in them.

Any time we see social media requests looking for a local real estate agent we always shout out to our realtor.

  1. A hand-written letter on fancy stationery paper
  2. Homemade Chocolate Chip Cookies
  3. A snip of your favourite indoor or outdoor plant in a pot
  4. Bottle of homemade wine or preserves such as jam, jelly, sauerkraut, kimchi,
  5. An invitation to visit for a home-cooked meal in the new house.

Fancy Paper

At The End Of The Day

The idea of a closing gift is to build a relationship so you hold on to your clients for life.

Like our realtor, she is always making sure to pop into our lives even if to say hello and see how things are going.

This is what building a relationship is all about even if it for business transactions.

Discussion: Did your realtor give you a closing gift? What was it? Did you give your realtor a closing gift? What was it?

Leave me your comments below as I’d love to read your experiences.

Mr.CBB

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