“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.
The Content Card Series is shown above. To learn more, Click Here.
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
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