referrals

The Pros and Cons of Real Estate Closing Gifts

Feb 28, 2024

“I think I’ll send my new patient a $50 Macy’s gift certificate to thank her for allowing me to perform her annual physical,” said no doctor, ever. Come to think of it, my hairdresser, accountant, and lawyer have never gifted me either.

Yet real estate agents, somewhere along the line, came up with this notion that they absolutely must provide a closing gift to their clients.

Obviously, the agent who first gifted a client must’ve found the practice successful because it was quickly copied and has now become standard practice.

Does giving a gift to a client make you memorable? If that were the case, more service industries would take up the practice, don’t you think? I don’t know about you, but I return to my hair stylist every month because I love the way she cuts my hair.

My accountant saves me money on my taxes. So, is it the gift that makes them remember you, or was it your performance?

Let’s take a look at some of the pros and cons of giving closing gifts, to real estate clients.

Pros

I’m not a tax expert or an accountant, but the IRS says agents can deduct up to $25 for each person they gift during the year. No, that’s not a whole lot of money and if you make the big bucks, you’ll need to buy a whole lot of gifts throughout the year to even put a dent in your tax bill.

If you feel you must give a gift, consider handing your clients the keys to their new home on a quality (meaning, not plastic) keychain. With your branding on it, you’ll be able to deduct it as a marketing expense and possibly get a larger deduction. Talk to your tax professional.

A swanky annual client appreciation event, on the other hand, will give you a bigger tax deduction as well as put you right back there at the top of their mind.

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Cons

Since referrals are the lifeblood of a successful real estate practice, and keeping them coming in requires remaining top-of-mind with former clients, it would have to be a major gift to make you memorable throughout the years.

What will make you memorable is frequent contact throughout the year — the birthday cards, the client appreciation events, and the ongoing direct mail campaigns.

Here’s something else to consider: you are a buyer’s agent. You have been at your client’s beck and call, spending weeks or even months driving your clients to house after house before they finally found one they wanted.

You submitted the offer, you coordinated your client’s end of the transaction, and you smoothly paved the way to a successful close. All parties are satisfied with the outcome. In return, you are paid a percentage of the sales price of the home.

You did your job and you got paid. Shake hands, as business people do, thank them for their business, and move on to your next client.

The subject of closing gifts, as you know, is a point of contention among agents. How about you? Do you gift?

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct, response-driven articles written by real estate industry experts and engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 6-Month Done-For-You Strategic Marketing Plan

The Real Estate Marketing Planner is a powerful 6-Month Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

3. The Free Interactive 6-Month Real Estate Business Review

The Free Interactive 6-Month Real Estate Business Review allows you to enter your business goals for the remainder of the year and get a breakdown of how many prospects, listings, closings, and so on are needed to reach your goals. – Click Here

4. The Become a Listing Legend Free eBook

This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

Generate More Listings Through Community Involvement

Feb 15, 2023

Some real estate agents enter the business with a huge sphere of influence to tap for their first deals. A lot of these agents are members of civic organizations, churches, or philanthropic groups. Even parents active in the local PTA come to the business with a list of potential clients.

Sound a bit mercenary?

On the contrary, using your community, social and familial contacts to help you cultivate potential clients makes sense.

“Involvement” is the operative word

One would assume that the busier the real estate agent – the more successful his practice – the less likely he is to volunteer within the community. That assumption is wrong.

Successful agents that understand the power of delegation and hire a staff, even if it’s one assistant, typically have a little time to devote to a community cause or to a personal passion.

When asked how they give back, those who claim they don’t have time to get into the community say they donate money.

While giving to non-profits, charities, churches, and other organizations is commendable, it is not really “community involvement.”

So, don’t let us stop you from writing those checks. We just hope you’ll consider giving some of your time as well.

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Mingling online doesn’t count either

The internet has changed many things about the way agents run their businesses, including how they stay in touch with past clients and their spheres. Much of it revolves around the use of social media.

But is social networking comparable to meeting face-to-face within the community?

Don’t get me wrong, being social via tech is valuable to your business. So, mingle online all you want, but it should be in addition to in-person involvement.

Meet and greet

This is where the meat of your community involvement campaign is – those organizations where you can contribute your time and talent and meet lots of folks from the community you serve.

Activities are more relaxed than the typical real estate transaction, so people get to know you as a person, not as a real estate agent.

Let’s face it – there isn’t much that distinguishes one agent from another, but on a personal level, it’s easy to set yourself apart.

Network with a passion

It’s important to pick a cause for which you feel some affinity – preferably a passion. This way, you can focus your efforts on the cause, not the leads. The leads will come – just give it some time.

Of course, if you have a passion – say for helping veterans or tutoring children – half the battle is won right there. If you have lots of interests, do some online research to help pare down the choices. Here are several places to start:

VolunteerMatch

AmericaCorps (ideal for Baby Boomers or those specializing in that niche)

Engage

There are numerous civic clubs to consider as well, such as

Finally, ask your local church or school what kind of help they may need, and if you’re athletic, become a volunteer soccer, baseball, football, or tennis coach.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan

The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

3. The BusinessBase, SOI building system

The most effective thing you can do to build a real estate business is to become more visible, more likable, and remembered more often. The BusinessBASE™ not only checks these boxes but is also a business-building machine. In two easy steps, you can begin to build a robust sphere of influence that will provide you a lifetime of repeat business and referrals. – Click Here

4. The Free Interactive Real Estate Business Plan

The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals. – Click Here

5. The Become a Listing Legend Free eBook

Mastering Rapport: Your Path to Real Estate Client Loyalty and Referrals

Jan 18, 2023

As a real estate agent, establishing a strong rapport with clients and potential clients is key to building a successful career. Rapport is all about creating a sense of trust, understanding, and connection, which can ultimately lead to successful, long-term relationships.

Today we dive into some practical tips on how to build rapport with real estate clients.

Active Listening

“Active listening is a communication skill that involves going beyond simply hearing the words that another person speaks but also seeking to understand the meaning and intent behind them,” according to Arlin Cuncic, MA at verywellmind.com.

In other words, avoid thinking about your next appointment during the current one. Cuncic goes on to give some additional tips to help you listen actively:

“Being fully present in the conversation.” Give every bit of your attention to the person speaking.
Maintain eye contact
Show the speaker you were listening by paraphrasing what was said.

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Show Empathy

Empathy goes a long way in establishing rapport with clients. Put yourself in their shoes and try to understand their perspective.

Buying or selling a home can be a significant emotional experience, and acknowledging and validating their feelings can help create a bond.

Offer support, reassurance, and a compassionate ear when needed. By showing empathy, you build trust and let clients know that you genuinely care about their well-being.

Tailor Communication Styles

Everyone has a unique communication style. Adapt to your client’s preferences and mirror their communication styles to establish a comfortable rapport.

Some clients may prefer a more formal approach, while others might appreciate a more casual and friendly conversation. Pay attention to their tone, pace, and word choice, and adjust your communication accordingly.

Be the Agent they can Count On

Timeliness and reliability are critical factors in building rapport. Few things in the business world are more frustrating than someone who doesn’t promptly respond to phone calls, emails, and messages.

Keep your clients informed throughout the buying or selling process, providing regular updates and addressing any concerns promptly.

By being responsive and reliable, you instill confidence in your clients, reassuring them that their needs are a top priority.

Building rapport with clients and potential clients is an essential skill for real estate agents. Thankfully, it’s one that can be developed over time.

When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazin

2. The Free 6-Month Done-For-You Real Estate Marketing Planner

3. The Free Online Real Estate Business Plan

The Real Estate Business Plan allows you to enter your business goals for the year and get a breakdown of how many prospects, listings, closings, and so on are needed to reach your financial goals. – Click Here

4. The Become a Listing Legend Free eBook

Conversations you Must Have with your Buying Clients

Feb 10, 2022

To Become That Stand-Out Agent

Crazy business, isn’t it? You studied, got your license, paid all those fees, found a broker, and GOT TO WORK.

If you were lucky, once onboard, your broker had some sort of training program for new agents. Most, however, teach a few rudimentary tasks and send agents on their way.

What is universally lacking is training on how to work with clients – especially buyers. In many cases, this leads to a less than stellar experience for home buyers.

Want to become a stand-out with your buyer clients? Here are three things you absolutely must share, that many agents won’t.

Rent By Numbers Campaign, see more **HERE**

Closing costs

Have you ever wondered why there is so much focus on educating buyers about the down payment while details about closing costs are rarely mentioned? I have a theory about that.

Buying a home is expensive. That’s a given. Telling a client who is on a budget that they’ll need thousands of dollars in cash to put down on a home almost feels like we’re scaring them off.

Once past the down payment hurdle, who wants to say “Oh, yeah, by the way, you’ll need about that much more in cash for closing costs?” It’s much easier to let the lender take the hit for that one, right?

But we owe our clients much more than this. There is nothing worse than meeting with the lender and learning you’ll need twice as much cash as your agent told you that you’d need.

So, vague references to closing costs don’t cut it. Be the agent that helps change the perception of the industry by being upfront and honest about all aspects of the transaction – especially financial aspects.

Give them more information about the loan process

First-time buyers have a tendency to think that loan preapproval is an iron-clad guarantee that they’ll get the loan. It’s the lender’s job to tell them otherwise but how many do so?

Since you, as the agent, have a vested interest in the buyer’s successful closing, don’t assume the buyer’s lender is going to do this.

What is especially important for your buyers to understand is that their loan can fall apart right up until the moment the loan is funded.

Quitting a job, moving money, buying anything on credit, applying for new credit can doom the entire purchase.

First Time Buyer Campaign, see more **HERE**

Treat the final walkthrough seriously

I once had a friend who bought a house and used a well-known local agent. It was her first home so she relied heavily on the agent’s experience.

During the final walkthrough, my friend allowed her agent to take the lead and, it’s a good thing because all of the appliances which were to remain with the home were gone. Refrigerator, washer, dryer – all missing.

Since the walk-through was scheduled the day before closing, the closing had to be postponed while the seller replaced the appliances.

After my friend moved in she found that the garbage disposer was also missing, plants were removed from the landscaping and several other fixtures were gone. At that point, it was too late to remedy the situation and she was forced to replace everything out of her own pocket.

The agent fell down on her duty to her client.

Make a walk-through checklist of every aspect of a home and use it during the final walkthrough. Counsel your client to move slowly and inspect everything.

PLUS: When you have time…below are some additional tools to support your success.

1. The Free 12 Month Done-For-You Strategic Marketing Plan

The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

2. The BusinessBase, SOI building system

The most effective thing you can do to build a real estate business is to become more visible, more likable, and remembered more often. The BusinessBASE™ not only checks all of these boxes, but it is a business building machine. In two easy steps, you can begin to build a robust sphere of influence that will provide you a lifetime of repeat business and referrals. – Click Here

3. The Free Interactive Real Estate Business Plan