The Importance Of Closing Gifts In Maintaining Better Relationships 

Every Real Estate Agent has a story about hustling to help a buyer purchase their first home just to have them refer their friends and family elsewhere and use a different Agent when they sell. So why do some of us put so little effort into the things that can help us earn more referrals and repeat business?

Referrals are the easiest leads to work with because:

• You don't have to go out and find them.
• You already have rapport built from the kind words their friend or family member shared.
• You can validate your initial client's decision to refer you by doing great work for their friend. This leads to more referrals from them.

Where do these leads come from? You can't control the way your past clients talk about you, but you can help yourself out through better client follow-up and by giving more intentional closing gifts.

How Much Money Should You Spend?

When you ask a Real Estate Agent what they get for their clients after closing, you'll get responses anywhere from swearing by the service they provided being enough to spending up to 5% of their hard-earned commission on the closing gift. It's a difficult thing to do because everybody does it differently.

Getting the right combination of gifts, and making them personal to your client, is the key. It's going to take more effort than you think, but the referrals you receive will be worth it. You already worked your tail off to help them purchase a home, so create a lasting impression that will turn that satisfied client into a billboard for your business.

Know Your RESPA Rules

Make sure you comply with the RESPA when getting a closing gift. In a nutshell, the act ensures that Real Estate Settlement services are not inflated by kickbacks and referral fees.

With regards to closing gifts, make sure any gift you give and any wording you use cannot be misconstrued as promising monetary (or non-monetary) gain for any referrals the client sends your way. Avoid using the words "preferred provider" and make sure you disclaim that any service gift (home warranty, cleaning service, ETC.) isn't an endorsement for that specific company. 

If you want more information on this, CREInsurance.com has a great article that goes deep into it.

General Tips

As you're searching for the best gift to get your client, you'll find a lot of different options. Any gift is better than no gift at all, but the best gifts will be:

• Custom Made - A gift that can spark joy in your client is something that includes a photo of their new home. It makes the gift feel more personal and special to them specifically.
• A Physical Item - Physical items promote the feeling of reciprocity, and your client will want to find ways to help you out.
• High Visibility - A gift that your client sees every day will remind them of the great work you did and will prompt organic conversation with anybody who asks about it. This turns your closing gift into a billboard for your business.

 

Ask Questions:

You spend a lot of time with each buyer as you walk them through properties, write up offers, and go over next steps. Any great gift starts with understanding what the other person would enjoy receiving. You spend enough time with them to know what they like, and if they don't offer up the information, ask questions to see what they enjoy. 

Branded Gifts:

Putting your branding all over the closing gift is a bad idea. It's supposed to celebrate their accomplishment in buying the home. Agents do this often, and it's required at some brokerages, but if you can avoid it, avoid it. It cheapens the sentiment and makes it clear that you're just trying to promote your business.

Closing Gift Ideas

Gift Cards: Gift cards are a common, easy-closing gift for Real Estate Agents. Giving a Home Depot gift card to a new homeowner to give them a jump start on their project is very nice and thoughtful. But it's impersonal; six months to a year down the line, will they remember you? How about in 7 years when they go to sell their home?

Alcohol: If your clients mentioned something about a specific brand of wine, it could be a thoughtful gesture to get them to show that you were listening. You should pair this with a different high-visibility gift that stands out a bit more. If you don't know if they drink or not, do not get them alcohol!

Practical Gifts: A knife set, cutting board, or hand tool isn't a bad gift for the right client. It should be memorable if they use it often, but please don't put your branding all over it.

Gift Baskets: The right gift basket is a wonderful gesture. Just make sure you're intentional with the items you put in there and include something that will stay in front of them for a long time.

Subscription Services: There are companies out there that do subscription boxes to send out every couple of months. It keeps you top of mind but can get pricy if you send them to too many clients every month.

Custom Home Decor: Home decor is the best gift after closing; it stays in front of your client for a long time and prompts organic conversation about you for anyone who asks about it. We have a closing gift store dedicated to great closing gifts. They're affordable, and you can pair it up with something else on this list. Our closing gift store  OutlineMyHome.com does custom decorations for your client's new home. 

An Experience: This is a great gift for the right people. Make sure it's an event they can attend before buying the tickets, and make sure it's something they'd enjoy. If you can, pair this one with a smaller physical gift.

Home Warranty Or Cleaning Services: This gift can be very beneficial to homeowners. Before going this route, make sure the company you're working with is reputable because any troubles they have with this company will reflect on you. Make sure you follow your RESPA rules on preferred vendors.

Home Gadgets: A ring doorbell or another type of gadget can be a conversational topic for a guest. It is useful to them and could make for a good gift for the right person. Just make sure it's something they will use and can brag about to their friends.

Hand Written Note: You should write a note thanking your client for their business and letting them know that you're there for them after closing. Something short and sweet works well. Similar to the example below:

Dear ________,

I wanted to take a minute to say thank you for your business. I truly appreciate your support. I am here for any of your real estate related needs moving forward. I have a network of contractors, lenders, and other service providers. Let me know if you ever need anything.

Congratulations Again,

(Your name)

David Wachs created a great article on LinkedIn all about handwritten notes.

Pro Closing Gift Tips:

Following Up After Closing: Your clients appreciate everything you do for them. You need to show them that you're still there for them after closing. Create a process for reaching out to your previous clients. Send them a Christmas card, reach out on their birthdays, and on their closing anniversary. If you do this, you will stand out from anybody else they've worked with, and anybody who talks about buying a house within earshot of them will be told about your great service during and after closing. We wrote an article with additional tips on following up after closing. Check that out here!

Track Your Closing Gifts and Referrals: Now that you have your process for reaching out to your previous clients, take it one step further by tracking what closing gift you got them and how many referrals you've received. As soon as you find out a past client sent someone to you, add them to the tracker, call, and thank them. Once you get some data in this spreadsheet, you can look back and see trends with gifts that did better and reflect on your follow up with each client. Not many agents do this, but if you take pride in your referral network, you won't have to work so hard to find new clients.

Give Your Clients a Link To Share: Some people, no matter how much they enjoyed working with you, feel conflicted about telling their friends about you. If you're reading this, I'm assuming you're a great agent who creates content about your local area. If you don't create content, you should.  Luxury Presence has a great article on that here.  (https://www.luxurypresence.com/blogs/real-estate-content-writing/). Make sure you're adding value to your audience with any post you make.

Make a guide video or blog post about purchasing or selling a home in your area, then give your client a fridge magnet or business card with a QR code to this content. Your client is adding value for their friend who's thinking about buying or selling; you'll get video engagement, and they're immediately going to see you as an expert in the industry.

Offer Your Services After Closing: You know contractors, plumbers, electricians, and other service providers in the area. Let your client know that, when the time comes, your contractors will appreciate you for hooking them up with that work. If you build a consistent enough relationship with them, maybe you can hook your clients up with a better rate. Make sure the contractors you recommend are solid before referring them, and make sure to follow up with your clients and make sure the job was done well. Make sure to follow RESPA guidelines when referring service work.

Show Up To The Closing Table: In my research, I was surprised to find how many clients were upset that their agent didn't show up to help them at the closing table. Most of the time, buyers are working with a lender they trust, and they're just signing some documents. However, buyers sometimes feel like they don't have their representation and that they are paying their buyers agent at this point; you're not there for support if they have any questions. Make it a point to be there in person, give them their gift, and let them know that you are still there for them if they ever need anything. You'll leave that lasting impression, and you can plant that referral seed.

Key Takeaways:

High visibility and custom-made closing gifts are the best way to spark joy in your client. Making it easy for them to remember you and provide value to their friends through your pre-made video or blog all about the steps to buying a home in your area. Listen during the home-buying process; your client will talk about the things they enjoy, and those are the things you should consider when looking for that great closing gift. Make sure your clients know you're there for them during and after closing but don't violate the RESPA Act. Create a lasting connection, and you'll turn every satisfied client into a billboard for your business!

 

Real Estate Agents are the backbones of communities. You are integral in helping your clients navigate their biggest investment. Thank you for everything you do! Our goal is to help as many of you as possible to keep your client connections long after closing through better closing gifts and follow-up.

Thank you for taking the time to read this article. If you gained any value from this ultimate guide, please share it with other Agents at your brokerage so we can help more of you.