Introduction to Real Estate Closing Gifts
Many times, we give people stuff to show our appreciation of their work, association, or companionship. The same principle applies in real estate as well. If you are in real estate, closing gifts are the best way to close out a deal. So what are real estate closing gifts? These are basically gifts that you, as a real estate agent, would present to a buyer of a property as a goodwill gesture. They are also referred to as client/resident retention gifts.
The goodwill gesture is a mark of appreciation of the fact that the buyer chose to do business with you. While a real estate closing gift may not have too high monetary value, its value as an instrument to foster loyalty and induce the buyer to refer friends to you is undeniable. Everyone loves appreciation and a good gesture, and your effort of presenting the customer with a real estate closing gift remains in the mind of the customer.
Such a gesture is what makes a customer come back to you, and also refer friends to you for their real estate needs.
Are Real Estate Closing Gifts Mandatory?
It is not compulsory for you, as a real estate agent, to present a customer who has become a buyer with a closing gift. While there are some that offer housewarming gift baskets, there are others who offer mere housewarming best wishes. In fact, there are many agents who do not buy closing gifts for their buyers. The logic behind this is simple - they are from that school of thought that believes that the quality of their work is proof enough of their commitment to the buyer and the premium value they place on their customers. Some give housewarming gift baskets, while others offer just housewarming wishes.
However, a survey has shown that most real agents prefer a closing gift option to close out a real estate deal. A survey done by the REALTOR® magazine places the number of real estate agents who opt for closing gifts at a huge 80 percent of the total number of agents surveyed.
Keys to Presenting Good Closing Gifts
There are a few things you must keep in mind while thinking about real estate closing gifts. The first thing is the cost factor, obviously. You have to ensure that your gift is not too low-priced, as it might end up offending the customer and backfire on you.
On the other hand, the gift should not be so generous as to leave a big hole in your pocket. Also, it should not make the customer feel awkward; there should be no feeling of inappropriateness, especially since it is the time when you are closing out on the deal.
The same survey by REALTOR® showed that only a minority (3%) of real estate agents spend over $200 on closing gifts. A little over 20% (23%, to be precise) spend less than $25 on a closing gift. The number of people in the next range, i.e. people who spend between $25 and $49 is close to 50% (44%, to be precise), while the number of people who spend over $50 stands at approximately 33%.
Good Real Estate Closing Gifts
So what would make a good real estate closing gift? There is no such thing as a universally accepted good closing gift. The ideal closing gift for a customer usually depends on quite a few things; like how much the agent is willing to spend - remember the legal issues involved with realtors giving gifts. You'll also take into account how useful you think the gift will be to the customer, or its decorative value, etc. You have to be able to select the right gift, the one that is just right in terms of not just pricing, but also style and appropriateness based on your relationship.
Different real estate agents opt for different gifts, mostly depending on what they feel would work best for the customer. So while you might give flowers to one customer, you could give champagne to another, though it might also be a good idea to give both together. If your customer loves interiors, you could present them with wall hangings or other such decorative material.
There are a number of things you could present your customers with, from housewarming gifts like a 'Welcome Home' plaque to unique items like hand-crafted photo albums, depending on your assessment of the client. But always remember, there's always a good reason to give a gift.
