The Best Ideas for Closing Gifts from Realtors

The Best Ideas for Closing Gifts from REALTORS®

9/23/2021

Both housewarming and closing gifts are a great way to not only celebrate a new beginning for your clients, but to also build those relationships. By giving a thoughtful, personalized gift to homebuyers when they close on a home, your help to strengthen your influence and obtain referrals down the road for your real estate business.

Keep reading to discover the best closing gifts from REALTORS®. Plus get advice on how much to spend on a real estate closing gifts with tips for choosing the perfect items.

Do REALTORS® Give Closing Gifts?

While buyers may not expect to receive a closing gift from their real estate agent, it’s normal for REALTORS® to give clients a token of their appreciation. Closing gifts from agents are considered a common courtesy within the industry.

You can relay your appreciation with a real estate closing gift or housewarming gift. A solid way to thank loyal customers for their business, these simple gestures also help to end the buying or selling process on a bright note.

Can REALTORS® Give Gifts to Clients?

There is a common real estate rumor that agents aren’t allowed to legally give gifts to clients. Variations of this state that gifts over a $25 are prohibited. This is mostly inaccurate, although it does depend on the circumstance.

Section 8 of the Real Estate Settlement Procedures Act (RESPA) states that “no person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or a part of a real estate settlement service involving a federally related mortgage loan shall be referred to any person.”

In short, this means that you can’t give a gift in return for a favor. Nor can you promise a gift as a result of a finalized service. However, if you are giving a gift as a thank you without any strings attached, this is okay. (You can read a more in-depth explanation of this and similar rules here.)

Further, the $25 rule seems to originate from a basic IRS rule that clients cannot deduct more than $25 for gifts on their taxes. That’s not to say you can’t give a gift exceeding this amount. Simply put, if you give a gift that exceeds $25 you can only take the allowed tax deduction for that gift. Again, there are several exceptions to the $25 rule. These pertain to entertainment gifts as well as branded gifts that are considered promotional or advertising materials. (You can find more on this below.)

Why You Should Give Clients a REALTOR® Closing Gift

There are a lot of great reasons to give a real estate closing gift to clients. Here’s why many agents engage in this practice:

Housewarming gifts from REALTORS® finalize the buying process. They are a wonderful way to thank clients for their trust in you to get the job done.
It’s not just a great business strategy, but also a highly recommended one.
When you pass on the opportunity to thank clients with a gift, you also miss out the chance to secure future referrals. This small touch helps to ensure that customers remember you and recommend you in the future.
Housewarming gifts are a great way to encourage positive online reviews on Zillow, a Google business page, and social media.
Not only does this thoughtful gesture leave a long-lasting impression with both buyers and sellers, but they also help your clients view you as more than a business acquaintance. So, it’s a great steppingstone for building lifetime relationships.

It’s an easy way to provide exceptional customer service and keep you top-of-mind.
Giving gifts falls in line with the old business principle that it costs five times as much to attract a new customer as it does to retain an existing one. According to research, increasing customer retention rates by 5% increases profits by 25% to 95%. Therefore, maintaining a quality relationship with homebuyers can result in significantly more referrals than if you allow your services to be forgotten.
Companies (and agents!) that establish a strong emotional connection with customers receive three times as many referrals than those who don’t nurture those relationships. While word-of-mouth marketing can improve the effective of your marketing campaigns by as much as 54%.

How Much Should a REALTOR® Spend on a Closing Gift?

As a rule of thumb, you should spend somewhere between 1-5% of your gross commission from a closing on a housewarming gift. When working with high-end clients, you may need to consider a higher quality gift rather than a run of the mill real estate closing gift basket to get the results you want.

According to feedback from real estate professionals on Alignable, most agents give gifts in the $25-$100 price range. Ultimately however, how much you should spend on a closing gift depends on your budget. When things are tight financially, I like to refer back to the old adage that you have to spend money to make money.

That said, giving a meaningful gift doesn’t have to cost a lot. It simply needs to represent your gratitude to the client. We find that giving personalized gifts is the best way to accomplish this.

Tips for Choosing Real Estate Closing Gifts That Stand Out

Here are some tips to help you choose the best client gifts.

Check out the social media profile of clients to get a gauge for their interests when choosing a gift.
Not sure what to give? Ask carefully crafted questions to get hints as to whether they’d like the gift you have in mind for them.
Connect with their coworkers on LinkedIn to see if a gift would be suitable.
Avoid giving branded gifts that don’t have purpose. You want your closing gifts to be beneficial to clients, so they are reminded of you when they use them.
Don’t be afraid to get creative. Choose custom gifts that are both personal and memorable.
Personalize the gift for the homebuyer. Any branding or advertising, if included, should be minimal. After all, this gift is about them, not you. Customizing your gift with a message personal to them will have a lasting impact. (You can always include your contact information on a business card or personalized greeting card.)

Give gifts that are both practical and thoughtful. Quality keepsake gifts are a wonderful choice. While gifts from a local company can have additional impact.
Rather than giving a real estate closing gift the day when things are hectic, gift it shortly thereafter as a thoughtful housewarming gift.
Present you housewarming or closing gift in person for a positive contact experience and to further build your relationship. You can also use this opportunity to inquire about their new home and ask for referrals.
If you are selling commercial real estate, give a gift to the entire company rather than one specific individual.

Stay in touch after the sale. While a housewarming present is a delightful way to show clients you care, periodically reaching out helps to extend the value of the relationship and further encourage referrals. Therefore, don’t forget to follow up in a year with a home anniversary card! Or send out a referral thank you card for new prospects. Consistency is key for staying in the forefront of clients’ minds.
Remember to deduct up to the legal amount for your closing gift on taxes. Save your receipts so you don’t miss out on potential savings when you file your end-of-year taxes.

Ideas for Real Estate Agent Closing Gifts

Now that you know that housewarming gifts are a great way to nurture your client relationships and gain referrals, you may need help figuring out what REALTORS® give as closing gifts. Here are some great real estate closing gift ideas you can give to new homeowners to make sure you aren’t forgotten.

Framed map of the town or city where they moved. A framed map makes a unique gift in addition to personalized home décor. You can personalize the map with a custom message and the family name of your client in addition to starring their location.
Welcome mat personalized with their name. A custom door mat is an easy way to welcome someone to their new home. And, in turn, perfect for the new homeowners to welcome first time guests.

First day home survival tool kit. I don’t know about you, but whenever I move, I find that I’m missing things or am lacking the tools I need to get my house in order. A home essentials tool tote contains all the basics you need to tackle small household projects. So, whether a client needs to hang a picture or make minor repairs, this thoughtful and intuitive gift covers all the bases.
Personalized cutting boards. Everyone can use a good, sturdy cutting board in their home. A house-shaped cutting board is perfect for a housewarming gift when a buyer closes on a new home. Or gift a beautiful, custom cherry cutting board with your client’s monogram or a warm message to remind them that “home is where the heart is.”
Spice rack. Spice racks and other home goods are another popular choice for housewarming gifts from REALTORS®. Useful tools such as serving ware, magnetic bottle openers or kitchen scrapers are also a nice gesture and can be included in a real estate closing gift basket.

Home sweet home sign. Returning home after being away is a great reminder that home is your happy place. Therefore, a sign of this nature is well suited for a real estate closing gift. In addition to a sign, you can also purchase personalized wood cutting boards, heritage chests, and custom coaster sets that feature this verbiage as part of the design.
Small plant or tree. This type of gift is especially valuable if your customer has a green thumb. Obviously, you don’t want to buy a tree for someone who just bought a condo. However, when my parents bought their first home in 1975, they planted a maple tree in the front yard.

Real estate closing gift basket. It’s easy to put together a gift basket that caters to your client’s tastes. Choose food provisions that you know your customers will like, then pair them with personalized housewares. Kitchen serving ware goes well with cheese and crackers, while this 3-piece entertainment set is perfect paired with basics such as tea towels and potholders.
Artisan coffee and custom mug. Coffee drinkers will ALWAYS appreciate the gift of coffee. Give buyers a personalized mug with their monogram or a photo of their pet along with a bag of two of their favorite artisan coffee. Or pair it with a bag from their favorite local coffee shop.

Custom cutlery. We’ve found that a lot of real estate agents give custom cutlery as housewarming gifts. Not only can these be personalized for the recipient, but they’re also available with a gorgeous acacia wood box for a beautiful presentation.
A free rekey of their new home. Homebuyers want to feel safe and secure in their new space. Part of this means rekeying the locks when they move in. You can save clients both the hassle and expense of doing this themselves by paying a professional to handle the task for them.

Personalized wine gift set. Giving a bottle of wine is a common gift for a housewarming. However, you can make this gift memorable by creating a gift set. Simply pair the bottle of wine with a personalized wine box or heritage box for a beautiful presentation. The boxes remain as a wonderful keepsake long after the wine is gone.
Personalized coaster sets. These custom coasters come in a set of six and can be personalized with a warm message and a subtle reminder of your business. Professionally printed to resist condensation, this product is available in a wide range of designs and shapes with a number of personalization options.

Knife block set. Everyone can use a set of quality knives in the kitchen! Both the block and each of the knives in these gorgeous, rosewood knife block sets can be engraved with your personalization or message for a truly remarkable gift for your luxury real estate clients.
Gourmet grilling set. If you know your customers love outdoor barbecues, then this personalized grilling set is a fantastic way to score points with your clients. The spatula in this set features a built-in bottle opener, so it’s perfect for parties and beer connoisseurs.

Happy closing day cards. In addition to, or in lieu of a closing gift, you can also give buyers a handwritten happy closing day card or personalized note card. These are inexpensive, but necessary gestures to foster your business relationships.

Are Real Estate Agent Closing Gifts Tax Deductible?

The IRS has strict limits on the amount you can deduct for client gifts. In general, you can only $25 for gifts per recipient each calendar year. The exception to this is entertainment themed gifts, such as tickets. For this type of gift, you may deduct $50 per year for each client.

There are some exceptions to this, however. Branded gifts with your business information can potentially be written off at 100%. This is because they are considered a promotional or advertising expense. However, we recommend that you check with a tax professional in your area or state for clarification before making any purchasing decisions.

We hope our ideas for closing gifts from REALTORS® helps you pick the best products to say thank you. For more housewarming gift ideas, also be sure to check out information on our best closing gift, the Ulu Elite®, as well as our client holiday gift guide.

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