Buying or selling a home is a major milestone in anyone's life, and as a real estate agent, it's important to celebrate that accomplishment. A thoughtful and practical closing gift can be a great idea to ensure you are showing gratitude to your clients.
A closing gift shows your appreciation for them, and also helps strengthening your relationship and encouraging future referrals.
But what makes a great closing gift, and how much should you spend? In this blog post, we'll explore the benefits of giving a closing gift, provide guidelines on how much to spend, and share 14 of the best real estate closing gift ideas to inspire you.
Why Give Your Client a Closing Gift?
There have been several debates on whether to give your real estate clients a closing gift; after all, when was the last time you ever received a gift after visiting a doctor? But many argue that buying a closing gift for your clients can benefit your business. Here's why:
- Forms a Long-term Relationship :Buying a dream home is not a small purchase. It's one of the most significant purchases in your client's life. Providing a real estate closing gift to your clients helps in making them feel recognized. They will find it comforting how you recognize the big emotional moment in their life. This will help form a long-term relationship with the client.
- Reminds Your Clients About Your Business : If you give your clients a real estate closing gift that's personalized and practical, they'll remember you every time they use it. They will likely call you again whenever they need you or recommend you to anyone who'll need a real estate agent.
- Attracts Client Testimonials: Real estate client gifts that grab their attention can also be a great way to earn yourself a nice testimonial from them. They'll be encouraged to talk good about you and leave you a great review on your social media or website which can be a magnet for inbound leads.
The main reason why giving closing gifts for your real estate clients matter is that it makes them feel valued, and it can act as a connection between you and the client. It sends them a message that you are committed to making their life-changing decision as best as possible.
This will encourage them to leave nice reviews for you and act as word-of-mouth marketing for your business.
How Much Should You Spend on a Real Estate Closing Gift?
There are no hard and fast rules about how much you can spend on gifts for your real estate clients because it depends on your commission. For example, if the house has been sold for $500,000 and your commission is around 3%, you'll receive $15,000. Ideally, the budget for a real estate closing gift should be between 1% to 5% of your commission. So, in a commission of $15,000, you can get a closing gift between $150 to $750.
Always remember that the gift doesn’t have to be anything too expensive for it to be meaningful. Sometimes, a costly gift can make the client feel too awkward to take it. So, be mindful of what you're giving and make the gift as personal as possible.
14 Practical Real Estate Closing Gift Ideas for Your Next Deal
As mentioned earlier, being thoughtful while gifting your real estate clients is important. This means there's no point in gifting them a chopping board with your branded logo because they might not use that. Instead, here are 15 brilliant real estate closing gift ideas:
- Fancy Meal: Gifting your clients a gift card or coupon for their favorite restaurant or a new local restaurant can be a warm gesture of connection. Further, they can even gift the restaurant gift card to their friends or family who are more interested in exploring. This will further make your clients talk about you by mentioning your name in a conversation. You don't even need to cover the full cost of the meal; a $100 meal gift card would do the job.
A fancy meal as a real estate closing gift idea is also thoughtful, as many people don’t resonate with the materialistic stuff gifted to them. For example, your client is already stressed about moving their existing items, while shifting and gifting them something will only add to their burden. In this case, prioritizing a local experience is better.
- One-Year Home Warranty: Extra protection on home items like electrical systems, appliances, and HVACs is important to curb future accidents. But many first-time buyers are too cash-strapped to be able to afford the additional security. Adding a one-year extended home warranty can be the best practical real estate closing gift for a more practical approach. It also prevents home buyers from falling into buyer's remorse.
- Personalized Noodle Board: A noodle board, originally used to hold pasta while it dries, is a crafty wooden board used to cover the top of your stove and hide unattractive burners to add an elegant touch to the kitchen. This handicraft item can be made in various shapes, styles, and materials and make one of the best real estate closing gifts with a touch of personalization to make everything more special.
- Gourmet Cheese and Wine Tray: Yet another useful and practical real estate gifting idea, this item is a versatile present that can suit the taste of almost anyone. It can be customized to fit the recipient's taste. Whether they prefer red or white wine or soft or hard cheeses, you can create a unique combination of food items to please any palate.
- Appreciate with Gift Cards Throughout the Year: Instead of carrying the tradition of gifting a one-time gift card, you can send small gifts to your clients throughout the first year. This can be more cost-effective as you'll be spending around $5 to $25 a month instead of the traditional one-time gift card cost. Further, it also keeps you on your client's top of mind.
- Simple Fresh Flowers: Simple, refreshing, and inexpensive, fresh flowers make one of the best home-closing gift ideas. Not only do flowers smell good, but they also accentuate the look of any room or corner of the home.
- Smart Doorbell: A smart doorbell typically connects with your client's phone app and allows them to see whoever rings the doorbell. It can be a great real estate closing gift as it brings a sense of security, peace of mind, and protection in the new neighborhood your client just moved to.
- Potted Plants: Nature is great, no doubt, and the idea of gifting your client potted plants after closing a deal with them is even better! Apart from being a fantastic décor item, potted plants are great for the environment in the home. You can gift one to the new buyer as a symbol of good luck in starting a new future.
Before you consider this real estate closing gift idea, it's better to research your client's existing allergies and their ability to take care of them. Some of the best options are bonsai trees, money plants, and succulents.
- Gifts for Their Pets: The pandemic has seen a rise in animal adoption. If your client has a pet, gifting something for them is a unique real estate closing gift idea. Your client is more likely to remember you if you show them you care for them and their pets. And it wouldn't take much to please these furry friends as you can get a treat box filled with their favorite toys and treats.
- Custom House Portrait: A custom house portrait is the safest closing gift idea for your real estate clients! To make it more personalized and special, give a portrait of the couple or family with their pets. This makes the picture more memorable for your clients, and they won't be able to resist talking about you whenever someone asks.
- Robot Vacuum: Most of the time, cleaning is a huge hassle and a point of worry for several new clients who have just moved into a new home. Amid the packing, shifting, and unpacking, the last thing one wants to do is clean their home. By gifting a robot vacuum, you are gifting your client convenience as it will save them from the worries of cleaning afterwards.
- Contacts of Other Professional Services: As a real estate agent, you must have grown contacts with various interior designers, painters, landscapers, handymen, plumbers, electricians, and more. You can push their business further by recommending them to your newly moved-in client. Your client will thank you, especially if they are new to the locality.
Further, the people you have recommended will appreciate your efforts and would also think about promoting your business whenever they need to. Isn’t this the best real estate closing gift for your clients?
- Mailbox Sign: You can never go wrong with a good, personalized mailbox as a home-closing gift for a client. Customize the mailbox with the homeowner's last name and a fresh coat of paint in their favorite color.
- Stationery: A personalized set of stationery items like a pen, notepad, diary, and other items is another thoughtful real estate closing gift idea for your client. Your client will most likely be eager to conduct a housewarming party and send everyone invitations, or some would love to send cards to their close family and friends about shifting to a new home. While this can be done digitally, some still prefer old school method. And even if they don't, there has never been an occurrence where a good stationery item has gone to waste!
- Should You Deliver the Closing Gifts in Person or by Mail?: Ideally, the best way to deliver a real estate closing gift to your client is by giving it to them in person. Your client will find the closing day one of the most exciting days of their life, and being there physically will make them warm up emotionally and act as a cherry on top.
- Are Real Estate Closing Gifts Tax Deductible?: Yes, the real estate closing gifts are indeed eligible for tax deductions, but there are some rules to follow. You can only write off $25 for every gift. But, if you want to write off more or the entire gift, you need to put personal branding on it. Doing this allows you to pass off the closing gift as a promotional expense and write off the entire gift.
But putting your branding on your gifts isn't always ideal as that may turn out to be more salesy and sometimes comes off as cheap. So, you need to take calculated steps to add your personal branding to the closing gifts.
At the end of the day, the best real estate closing gifts are the ones that are given with gratitude and genuineness by considering your client's interests. If you keep them on top of your mind, you will more likely stay on top of their mind whenever any real estate needs pop up for them or anyone they know.