Chris Heller, Licensed Agent6/2/2023
If you’ve been spending time with a client for a while, you’ve likely gotten to know them fairly well. They’ve already let you know what their lifestyle is like, and what they are looking for in a home. They’ve probably also inadvertently hinted at other things that they may enjoy. For example, maybe they always show up to open houses with a hot tea or a freshly blended smoothie. These are things a good real estate agent will pick up on, and those small clues can become great closing gift ideas.
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Real estate closing gifts are an important gesture, and you want your gift to say the right thing. After all, if done right, these gifts will help you build a long-lasting relationship with all your clients. It can even help you get referrals in the future, which in turn will build up your sphere of influence. It’s also a great way to note the end of a chapter, while celebrating your client’s new chapter that is just beginning.
We sat down with some of the nation’s top producers to see what approach they use when a deal is coming to a close. Read on to hear how much most real estate agents like to spend on a closing gift, and get ideas for items that make a lasting impression.
Why give your client a closing gift?
1) Real estate closing gifts can help form a long-term relationship
1) Real estate closing gifts can help form a long-term relationshipBuying or finding the perfect gift isn’t just about making them feel special, it can also go a long way for you as a real estate agent. The closing gift is likely the first housewarming gift your client will receive, so you have a great opportunity to make it memorable. It’s usually best to get them a personalized gift that way you’ll make a lasting impression that they’ll be reminded of for years to come.
2) Closing gifts remind clients about your real estate business
If they think of you every time they use it or see it, then they’ll be reminded of the services you provided. That will keep you in the forefront of their mind the next time they need a real estate agent, or know someone who does. If you master the art of gift giving, you’re more likely to receive referrals from previous clients.
3) Real estate closing gifts attract testimonials
A unique closing gift that catches your client’s eye will also encourage them to leave a nice review or testimonial on your brokerage page, personal website, or social media page. That will also increase the number of inbound calls you get.
The main purpose of finding the perfect realtor closing gift is to connect with your client. Leaving the transaction with a personal touch lets them know that you care, and that you were listening the whole time to their wants and needs. This unique closing gift should send the message that you are rooting for them in this next chapter of their lives, but it also reminds them that you were able to complete the job and bring them to a successful closing day.
When you make this connection with your client, the real estate referrals and reviews will flow in naturally. No need to push for it, if your main focus is your clients happiness.
How much do most real estate agents spend on closing gifts?
This is one of the biggest questions realtors have. While many agents want to make a lasting impression, they don’t necessarily want to break the bank. They also don’t want to appear cheap, so they are left wondering how much they should spend on a personalized closing gift.
Naturally, the answer varies depending on the market. Some housing markets are extremely competitive, and agents may end up working with clients for months at a time before finding the right home. Other times, things seem to work out and closing happens with little stress on the buyer’s end. That’s why there is no right answer here. However, some experts say there should be a set budget based on the gross commission of the sale.
A good rule of thumb is to spend anywhere between 1-5% of the gross commission income for that deal on real estate closing gifts (Source).
If we break it down, a $500,000 home at 3% commission, equals $15,000 in commission. In this case, 1% would be around $150, and 5% would be around $750. While price doesn’t necessarily dictate how memorable a real estate closing gift is, many agents say they spend about 2-3% of the commission income on their clients.
So to get a better idea of the dollar amount agents are spending, we asked agents around the nation what they typically give as a real estate closing gift. Here’s what they had to say:
“I generally spend $100 to $150 on real estate closing gifts. It is best to make the gift personal. If something comes up during conversation that sparks a great idea for a gift I know they will love, I go with that, even if it means spending a bit more. In the past I have commissioned watercolors and pencil drawings of buyer’s new home. Recently, I have been exploring very high quality cutting boards with a commemorative message burned into the wood.” – Tom Hume, Windermere Professional Partners in Washington
“When I get a unique gift, I usually spend around $100-$200 on real estate closing gifts. However, I have found that it is more about the connection it makes with my client than the dollar amount. I try to make it something that they will really enjoy. For example, sports tickets if they are a fan of a local team, gift card to a local restaurant they said they frequent, or something else along those lines. If I am unsure, I will get something they can use at home such as a smart speaker or similar.” – Will Rodgers, Keller Williams in Virginia
“I usually spend around $30-$50 per client on closing gifts, and I either have them mailed or give them by hand. My go-to gifts are gift baskets from Costplus World Market, Amazon, or Wine & Country. I usually put a thank you card with the gift, whether I give it to them in person or have it mailed. I want them to know I am grateful for the opportunity to help them and tell them that if they or anyone they know needs help in the future, let me know.” – Khari Washington, 1st United Realty & Mortgage, Inc. in California
“I do not have a set amount that I spend on a client. This is something that is determined on a client by client basis with many different factors considered — how long have I known the client and how many transactions have we done together, the value of the property, was it a single transaction or a purchase and sale, etc.” – Karen S. Paris, Strategic Real Estate Advisor at Real Estate Bees in Virginia
“I budget $100 or less for closing gifts and try to give something personal and memorable. For example, many of my clients purchase vacation homes so I might give them a hand carved wooden sign from Etsy with their names on it or a customized clock of the lake they just bought a home on. Last month, I gave two clients birch bark reindeer made by my retired neighbor. They’ll make a great winter decoration and are something different than a bottle of wine or fruit basket!” – Link Moser, Experience Homes Group
A closing gift is not required
Just remember that a estate closing gifts are not necessary, it’s simply a bonus if you choose to give one. Some agents like to leave a parting gift in hopes of generating more leads in the future, but others believe that bringing a client to closing day successfully is the perfect gift in itself.
“Eliminate closing gifts! Why do we bring clients a gift for a job that we did? It is so bizarre to me to show up to a title company and see a new or tenured realtor standing there with a huge fruit basket or bottle of Dom Perignon. I think the best closing gift is a deal that you actually helped put together, and it closed! A Thank You note thanking the client for the opportunity should be sufficient. Let’s disrupt the industry moving forward.” – Rogers Healy, Rogers Healy and Associates in Texas
Real Estate Closing Gift Ideas
1. A fancy meal
A gift certificate to a client’s favorite restaurant, or a new local restaurant in town is a great way to form a connection. Even if the gift certificate doesn’t cover the full cost of the meal, it’s a simple gesture that goes a long way. It is also likely that your name will come up during the meal and for some time afterwards. For example, if you give a client a $100 gift certificate to the newest steakhouse in town, all your clients are likely going to tell their friends and family members how the food/experience was. In that same conversation, they will bring up the fact that their real estate agent gifted them the opportunity to check it out.
“I’ve learned that ‘stuff’ doesn’t resonate with clients over the long term. Clients are dealing with moving their personal items and can actually be burdened with additional gift objects. As a result, I’ve been prioritizing a local experience. My go-to gift is a fancy meal. Sometimes I’ll just provide a DoorDash gift card (or another meal kit delivery services card), but other times a gift certificate to a particular restaurant that I know will resonate with my clients. I historically used a scaled gift budget based on the size of the transaction that would be anywhere from $250 – $1,500, but I’ve found that most clients don’t appreciate gift certificates as much as a local experience and that spending more money does not necessarily result in higher levels of client satisfaction.
The emotional feeling that stays with a client at the conclusion of a transaction is the most important part of any deal. I want the client to feel understood, safe, and fulfilled by the outcome of the transaction both financially and emotionally. By providing memorable, heartfelt experiences for my clients, I hope they think of me fondly, and remember me when they or their friends have a future real estate need.” – Megan Micco, CEO of Megan Micco, Inc. in California
2. A personalized gift basket
This is a perfect closing gift for many real estate agents because you can include a bunch of different items in the gift basket that vary in cost. It’s easy to include a couple of high dollar items, and stuff the gift basket full of other less expensive items that still serve a purpose. This is also a great way to include everything that you picked up on while spending time with your client. For example, if they have a particular tea or coffee they like, drop that in the basket. If they love a particular sports team, drop in a team magnet or yard sign. A gift basket is super customizable, and can be done at any price point.
“When I first started almost 7 years ago, I made sure that gifts were customized (puzzles of the town, or neighborhood for buyers, water color paintings of the home for sellers and other creative items). Over the years, I’ve swapped my gift ideas and landed on gift baskets- usually a laundry basket, or large wicker basket with a variety of items but some staples include bath towels, kitchen towels, a candle, some cleaning supplies, microfiber cloths, a magnetic notepad, coasters, chip clips, a small cutting board, a box of crackers, a nice block of cheese, glassware, or yeti sleeves, and either a bottle of wine, beer, coffee, or something else that might be appreciated.
The thought process is, they may not be moving in that day, but that a gift basket will have an assortment of items that can be used right away if they don’t want to unpack a dozen boxes to find what they need. I like the gifts I give to be purposeful and something that people will truly use, and not just keep on display, or put away and forget about. There’s also something special about visiting clients years later and seeing something like the gift basket I gave them that is still being used for blankets or towels or something.” – Stacy Mafera, Coldwell Banker Realty in Massachusetts
3. Serving bowls and dishes
Kitchen utensils and dishes for entertaining are a great housewarming gift for many clients. This thoughtful gift is especially memorable for first-time home owners who likely don’t have a ton of long-lasting, quality items just yet. A set of serving dishes will remind them that they now have the space to entertain guests in their own home. They are also a great, unique gift for a housewarming party, which can turn into a prime opportunity for your client’s to gush to friends and family about the closing gift they received.
“I love sending Tiffany glass serving bowls. There are so many uses and it looks very nice wherever you put the bow. It is a simple but nice gift for the client.
I always make the message in the card personal and add experiences we had throughout the process. But I always say in the card, ‘thank you for the opportunity to help you through the process. I am very fortunate to be able to help you find your new home and all the memories you will make. Always reach out if you need anything.'”- Brett Ringelheim, Compass in New York
4. An expensive pen
Some real estate agents want to avoid getting large items like gift baskets for fear of adding more stress to a client’s moving day. Sometimes having more to unpack can feel like a burden, so agents will opt to gift something small and useful like a nice fountain pen. This is a unique gift that can be used over and over again, and will be kept in a convenient place for every day use. If you get them a memorable pen, then it increases your client’s chances of thinking about you and your services every time they use it.
“Closing day should be a feel-good experience for everyone involved and I don’t hesitate to spend several hundred dollars on a generous gift to hand my clients at closing to show them how grateful I am that they trusted me to guide their transaction. My favorite go-to gift is a fine writing instrument such as a the Visconti Van Gogh Fountain Pen, which is something they can use regularly.” – Mercedes Smith, Equity Real Estate in Utah
5. Continuous gift cards
Instead of leaving one large gift at closing, some agents prefer the gift that keeps on giving. They may continue to listen to what a client likes and dislikes, and take note of future small gifts to give throughout the homeowner’s first year in their new home. This is a more cost effective way of giving a closing gift, and continuously reminds your clients that you successfully helped them find their dream home. If you opt to do this, you can spend $5-$25 a month as opposed to spending a higher amount all at once on closing day.
“Instead of the traditional one-time closing gift for my clients, I prefer to leave a small gifts of appreciation throughout the year. For example: a coffee gift card, gift box of chocolates, flowers, gardening basket, bottle of wine, suntan lotion etc,. The items can be endless. This method leaves an on-going impression and if done consistently assures the agent can find themselves top-of-mind. They are fun not only for the recipient, but the giver as well!” – Tanya Gordon, NLP Master Coach
6. A spa day
A gift certificate to a local spa is a great gift for clients who have recently relocated. Moving across the country can be extremely stressful, especially during COVID times, so gifting your clients with a relaxing day to themselves is the perfect way to let them know that you’ve been listening. It also allows clients to pick what spa services they prefer. For example, they can choose to get a massage, or if that makes them uncomfortable they can get a facial and buy a lotion with the leftover gift card money.
7. An art piece
Many real estate agents like to tap into the local art scene to show clients what the city has to offer. A simple drawing, painting, or craft project made by a local artist is a great closing gift for clients. It’s easy to personalize, and can be inexpensive while still showing a client that you care.
“A real estate closing gift is not only a way to show gratitude for their business, it also leaves a lasting impression for years to come. Typically I budget for $100 – $150 and prefer timeless gifts from local artisans or businesses. Recently I have been giving hand sketched, framed drawings of the home. I present the closing gift in person. It’s an opportunity to thank them for their trust and business, to ask for reviews and referrals, and to remind them that you’re a helpful resource for all things ‘home’.” – Patricia “Patti” Green, Century 21 Thomson & Co in New Jersey
8. A new home photoshoot
A front porch photo session is becoming an increasingly popular closing gift. Many clients want to send out their new address to family and friends, and what better way to do that than showcasing the front of the home? This can also be cost effective if you work with a local photographer regularly. If you are able to bring them consistent business, they are typically willing to give you a discount when you help new clients to close.
This is also a thoughtful gift because it doesn’t have to be unpacked or even used right away. Clients can wait until they’ve had a chance to decorate or landscape, and then they can take advantage of the photoshoot, reminding them of how far they’ve come thanks to your services.
9. A bottle of wine or other alcohol
A bottle of wine or a client’s favorite liquor is also a generous gift. Often times clients want to celebrate their first night in their new home with a toast and a bottle of fine booze. Or they will invite friends and family over for a housewarming party where they can open up your bottle and enjoy with loved ones. Either way, alcohol is a great gift that client’s can use immediately or hold to celebrate a successful closing.
“I typically have a standard gift for any client: a bottle of alcohol. But I do like to purchase new homeowners items for their property. I have sent house plants, wine glasses with wine, art work, and kitchen items. When working with the client I try to better understand what they like and dislike so when I send them a gift it’ll be meaningful. Typically $25 – $200 depending on the price point.” – Spencer Harvle, RE/MAX in Colorado
“My go-to gift is a basket of fruit or a nice bottle of wine. I think that it’s a nice gesture, and the client can enjoy it after they move into their new home.
The message that I want to leave with my clients is that I appreciate them and their business. I want them to know that I am thankful for the opportunity to help them purchase their home. I also want them to know that I will continue to be available to them after they close on the house if they have any questions or need help with anything.” – Paul Corazza, Principalat Independent Property Group Gungahlin
10. Backyard game set
A fun yard game, like cornhole, makes a great real estate closing gift for clients that have kids or like to entertain. Gifting a fun backyard game will have your client’s on their way to being the go-to home for those summer days and neighborhood parties. This is also a customizable gift if you want to spend more money. You can order a bocce ball set with a team logo, or buy cornhole boards with your client’s favorite team mascot on them. Either way, a fun outdoor gift will get you one step closer to being invited to the next big backyard BBQ.
11. Flowers
Fresh flowers are a simple, and inexpensive gift that you can give on closing day. They make a home smell nice and can accentuate a beautiful room in the real estate client’s new home. It’s also a great idea to get them when they are still budding so that they will last several days for your client’s friends and family to enjoy when they come to see the house.
“A gift that I recommend would be a beautiful flower which will definitely symbolize happiness. Every gift is meant to signify the good intentions that accompany it and the amount spent should always be appropriate from the commission they get from the property. It is always thoughtful for gifts to be presented by hand; it signifies how thoughtful they are towards an individual.” – Olivia Tan, Co-founderCocoFax
12. Customized charcuterie boards or cutting boards
Treat your real estate client to a tasty treat that they’ll be able to enjoy while they unpack and unwind. Charcuterie boards go great with a bottle of wine, but they can also stand alone for any clients that don’t drink. A customized cutting board is also a great closing gift that comes in handy. They can choose to leave it on display, or put it away if they want to declutter. Either way, a great wooden board is becoming a household staple just about everywhere.
“I work in the suburbs West of Boston in fairly affluent communities. Many homes sell over $1m. I spend an average of $100 on closing gifts which I hand select. I write handwritten notes and deliver myself. Whether seller closing gifts or buyer closing gifts, I thank my clients for their trust in me and celebrate their move.
I have beautiful branded cutting boards (logo on the bottom so they can use without seeing my name), I’ve provided a custom tool box for a new, first time homeowner, wine, etc.” – Jamie Grossman, Gibson Sotheby’s International Realty in Massachusetts
13. A gift for their pet
With the pandemic, we’ve seen more people adopting animals. With more jobs becoming remote, couples and families have more time to spend with their pets. That’s why there has been an increase in the number of people placing importance on a fenced in backyard. So why not impress your clients by showing them that you care about their furry friend as much as they do? Help them welcome their beloved pet into the new home with a gift box filled with their pet’s favorite toys or treats.
14. Gift a class
Instead of gifting your clients an item, instead give them the gift of local experience. This is a fun way that they can make a new memory, all thanks to you. Look into local cooking, painting, or even pottery classes where your clients can go out and make new friends. This is a great gift for clients that are new to the area and haven’t had a lot of time to explore the city. This type of closing gift is also a great way to partner with and support local businesses in your market. Plus, if you regularly gift a particular class you can see if that business would be interested in giving you a discount for X number of clients you send their way.
15. Local coffee beans or sample pack
Does your client have a fresh cup of coffee every time you see them? Gift them a few bags of local coffee grounds or beans, depending on what they like. This is a reminder of the fresh, energized start they can wake up to in their new home. If you aren’t sure what flavors they prefer, go with a variety pack or a sampler so that they can try them all to discover a new favorite. This closing gift can also be elevated with a set of personalized coffee mugs, or coasters that match the interior of the home.
16. Stationary
There’s no better, branded gift to help your client celebrate their new home than personalized stationary. Clients often want to send out cards to friends and family with their new home address on them, and a beautiful, new stationary set is the perfect, branded gift to encourage them to do so. It’s also a great way to celebrate your client’s new home, by giving them a gift where they can write their loved ones explaining their most recent life update and change of address.
“I try to make the gift as personal as possible. If I know the buyer will need something specific in their home, I get it for them. If I know the seller will appreciate something as a memento, I make it or buy it. I prefer gifts that ARE NOT “used” and done, like champagne, sweets or restaurant gift certificates. I prefer personalized gifts that last: for any client, personalized stationery with their new home address, for example. Depending on the situation, it can be fancy engraved stationery, or something less expensive.” – Michael Shapot, Keller Williams NYC
17. A smart doorbell
Smart doorbells make the perfect gift for a new home. They help your clients feel safe and protected, and they also love to play with the new technology. There are a number of options on the market now that are affordable, so you don’t have to over spend. Smart doorbells are a compact and affordable doorbell that will give your client peace of mind. The smart doorbell connects to an app on your phone or other device that lets you see who is at your door. It even lets you talk to them from your current location, no matter where you’re at. If nothing else, it’s a closing gift that will get your clients talking.
“My go-to gift is the Ring PRO Doorbell, it’s the more expensive version and it’s the wired one. It’s a significant enough gift that they will tell people about it. They might tell someone, “Oh my gosh – my Realtor® got us a ring doorbell” and even though the doorbell might cost between $200-300, in my opinion, it’s money well spent. It’s almost like lead generation for me.. Not only will they refer me and talk about me to their friends, but it’s also something they use on a daily basis and every time they use it, it is a refresh in their mind that their Realtor® gave them a gift.” – Amanda Little, Living Houston in Texas
18. A robot vacuum
Give the gift of convenience. Once your clients have spent time packing, moving, and unpacking again, the last thing they want to worry about is vacuuming and cleaning up. Save them the stress of cleaning with a robot vacuum. While this is a pricier gift, your clients will be thankful for a useful product that will help them keep the floors of their new dream home clean and shiny while they worry about getting settled in.
“Roomba is a very efficient device that is making waves in floor cleaning. These robotic vacuum cleaners do not take up any space and you can leave them on before leaving for work. Considering my business as a real estate agent, I believe Roomba is the best choice for a closing gift.
Considering the competition in the market, it is hard to build intricate relationships with customers. But that is the desired message I want to leave my clients with, the promise of immaculate services and a person they can trust in the time of need.” – Keith Sant, Owner of Kind House Buyers in Washington
19. Professional services
As an agent, you’ve likely grown some personal relationships with local painters, handymen, interior designers, or landscapers. Give these connections some business by gifting a free consultation, or a discount on a project your clients have mentioned wanting to do in their new home. Your business friends will appreciate the new work, and your clients will be grateful that they don’t have to call around for quotes.
“If you’re in a pinch, we always go for something useful that involves our vendors, like a free consultation from our general contractor for standard home maintenance at the one year mark.
We try to hand deliver as much as possible so we center the gifts around meetings that are important in the transaction. Of course that doesn’t always happen so when we can’t, we opt for handwritten cards and we even have some gifting automation baked into our process for the post transaction gifting to keep our name top of mind.” – Jennifer Wehner, team leader of the Wehner Group in Scottsdale, Arizona
Should you deliver the gift by hand or mail it with a card?
Gifts are typically best received when they are given in person. Closing day is already a very exciting day for most clients, and a gift is like the cherry on top. However, some agents prefer to leave a gift as a surprise, or like to drop by frequently to check in on the progress of the home. Here’s what some real estate experts have to say:
“The situation varies. Since we are involved in the relocation industry, we typically receive the keys to the property prior to the buyer’s arrival. That being said, if we are there, we deliver it in person, or we have it in the house waiting for them, with a nice note as a surprise – always with a bottle of champagne or celebratory equivalent. Oftentimes, people give generic gifts which can be good, there is a time and place, but ultimately, it is the thought that counts.” – Meghan Maloof Berdellans, Broker Associate at eXp Realty in Florida
“What gift I give depends on the price point of the transaction, but I do always give a gift. For deals up to $1 million, I put together a basket with a bottle of Veuve Clicquot, and two Champagne flutes, along with $300-500 in gift cards (again, the amount depends on the sale price) to my favorite spots in the town where they are buying, branded coasters, and some other little items for the home. If they have a dog/cat, I’ll get a few little pet toys.
For deals over $1 million, I change the Champagne to Dom or Cristal, and add a set of branded Cutco Knives (one chopping and one cheese knife) along with two bottles of wine and some cheese from one of the local cheese shops.
I ALWAYS hand deliver these either at the walk through or the week after the closing.” – Glen Pizzolorusso, Licensed Associate Real Estate Broker with Compass
Are Real Estate Closing Gifts Tax Deductible?
Yes, closing gifts are eligible to written off as tax deductions when tax season rolls around. However, there are some rules you must follow to take advantage of the deduction.
If you are buying a gift for a client, you can only write off $25 per gift. But there is a little trick around this if you want to write off more. In order to write off the entire gift, you need to put your personal branding on it.
If you place your branding onto the personal gift, typically you can deduct the entire purchase as a promotional expense. This is a huge plus come tax time!
Putting your personal branding on a gift isn’t always that easy though. Sometimes it can come off as cheap or salesy, as opposed to showing a client how much you listen and care.
Branded or personalized gifts aren’t for everyone, so if you choose not to go this route be sure to save receipts for all the closing gifts you’ve purchased to have the best chance at deducting those from your taxes at the start of the year.
“The rule is to spend $25 because that is the allowed taxable deduction. I try to stay in that range with meaningful gifts that will last for a long time—for example, doormats and plants. However, I have purchased doorbell cameras because they are very practical. I want to avoid offering a gift that is obnoxious or flashy. For instance, I will not buy a gift with my name or my brokerage. On the other hand, who wants to cut meat with knives that have the Real Estate Agent’s name, picture, and company name on it. I don’t.” – Deborah Spence, Fierce Realty Corp in Pennsylvania
