How Much Should A Realtor Spend On A Closing Gift?

Being a real estate personnel, you need to maintain a positive relationship with your client during a deal. A closing gift can be a friendly gesture towards your client. Does the general question arise that how much should a realtor spend on a closing gift?

A decent expenditure on a closing gift should be around 1-5% of the commission you get from a deal. Besides, the quality and price of a gift from a real estate agent also depend upon the value of the deal.

Presenting a good and subtle closing gift to your client would do two betterments. Firstly, it will create a positive impression and enhance your relationship with your client. Secondly, it will increase the chance of expanding your referral to other clients.

How Much Should A Realtor Spend On A Closing Gift? 

Relation with the client

First of all, an estate agent should inspect the quality of relations he/she is having with the client. If the client is friendly and knowledgeable, then the realtor should be careful deciding on picking the gift.

A friendly and professional; relation with the client would help you get better deals and referrals in the future. By judging the future outcome, you can decide the worth of the gift you would be giving to the client.

Quantitative quality of the deal.

The amount you should be expending on a closing gift also depends upon the dealing amount. This phenomenon can be explained using a real-time example.

Let us consider if land or home is sold at 500000 USD with a 4% commission. Then the commission amount stands at 20000 USD. 

Now, judging by the client’s personality and intention you can set between 1-3% of expenditure of your commission. This means, for a 500000 USD deal you should spend around 200-500 USD on a closing gift.

Unique Real Estate Closing Gift Ideas 

No matter how much your budget is, you must pick some unique and creative gifts for your client. Here are some atypical and unique ideas for you to choose the closing gifts for your client.

Ceramic Coffee/Tea Cup with Gift box

This Ceramic made Mug for tea and coffee can be a classic gift for a new homeowner. It will create a positive impression about you to the client. The mugs are available in single and double packs.

If your client moves in with his/her better half then you should be presenting the double pack. Besides, the mugs are not just a showpiece. Your client can use these to spend quality time with his/her life partner sitting on the balcony.

BrandTuobsm
Weight 1.86 pounds 
Dimension10.71 x 5.67 x 4.61 inches 
Key FeaturesSubtle and sweet imprinted greetings on the mugs would refreshen the mood. 10.98 ounces of internal capacity is standard for any tea or coffee meet-up. The ceramic-made body makes it look premium.

HouseWarming Wedding New Home Gift Basket 

The set of standard and quality home appliances can be a good choice as a closing gift from a realtor.  The gift set comes with a dotted pattern gift box. Besides, you will get a usable solid and premium cutting board, a working spatula with greetings message, and a scented candle.

Now, if your client is a woman, then this gift box would be quite useful and unique for her. The inner items can be used in real-time which enhances the usability of the products.

BrandHEY, IT’S YOUR DAY! GIFT BOX CO.
Weight 2.86 pounds 
Dimension15 x 10 x 4.02 inches 
Key FeatureThe receiver can use the engraved cutting board as a showpiece or simply for cutting vegetables. Its included scented candle would ensure a quality romantic environment. Stainless steel spoons are made for multipurpose uses such as adding sugar to tea and coffee.

Whiskey Cubes & Glasses Closing Gift Set

This luxurious whiskey set would put a smile on your client’s face. The whiskey set gift box will surely add a unique display to the mini home bar. It can be used as both a showpiece and serving wine or whiskey.

The included gift box is made of premium quality wooden texture with an inner cushion supporting the delicate glasses. This whiskey set includes two twisted whiskey glasses, two XL cubes, a standard whiskey tong, a velvet pouch, and two slate coasters.

BrandFrolk
Weight4.91 pounds 
Dimension15.28 x 7.36 x 5.24 inches 
Key FeatureThe stainless steel cubes will chill your whiskey in no time without causing any dilution. Non-slip slates are used for keeping the glasses stable. Unique twisted glass shapes add more uniqueness to the environment. The premium velvet pouch is used to keep the cubes safe.

Mind Reader Coffee Pod Drawer and Holder

The mini single-serve coffee holder can be a unique addition to the kitchen or dining table. It will help the client to express his/her gratitude and standard towards a guest. Therefore, this coffee server can be a good pick for a realtor to present to his/her client.

It can hold a large-sized coffee mug or coffee machine conveniently.  The tray is designed to hold 30 different coffee additives. It allows the guest to place the coffee pot safely on the holder and mix the additives quite easily.

BrandEMS Mind Reader LLC 
Weight2.29 pounds 
Dimension13.07 x 9.5 x 2.52 inches 
Key FeatureThe tray has a spacious drawer to hold 30 different coffee servings. Its lightweight design makes it easily movable without spilling or accidents.

Picnic at Ascot Patented Bamboo Board with Knife Set

It’s a bamboo-made retractable kitchen set for cooking enthusiasts. It can be a great choice for presenting to clients who love cooking and kitchen appliances.

The four-level cheese board can hold variable food and cheese items. Besides the included drawer comes 3 different usable stainless steel knives for different purposes.

BrandPicnic at Ascot 
Weight4.5 pounds 
Dimension18 x 18 x 3.2 inches 
Key FeatureThis board is spacious, having an 18” diameter. It can be used as a stable cutting board. The hidden drawer contains stainless steel knives for cutting purposes. It is made of high-quality bamboo material for increased durability.

FAQs

These are the most common questions asked by genuine users for determining the expenditure for closing gifts. 

Can realtors accept gifts from clients?

Realtors can also accept gifts from clients. Estate agents build a bridge between the selling company and the client. That’s why clients can also present a subtle gift to the realtor as a token of gratitude. 

Do realtors give closing gifts to buyers?

Realtors can give closing gifts to the buyers as a small token of appreciation. Realtors do a lot to convince and help the client to buy the best home or land. After a successful deal, an estate agent receives a handsome amount of commission. A small percentage from the commission is used to buy a closing gift for the client. 

Are realtors closing gifts tax-deductible?

Closing gifts given by a realtor are tax-deductible. A realtor can spend not more than $25 for presenting gifts to his client showing the exchange as a business purpose. 

Do you give REALTOR a gift at closing?

While closing a deal with an estate agent, you can give a small and useful gift of gratitude to the realtor. This gesture helps to maintain professionalism and builds a positive relationship between client and agent.

Conclusion

The estate agents work hard to help the buyers to pick the best-suited land or home. They spend a lot of quality business time with each other and travel to the project sites. It results in building a bridge between them.

At the closing, a realtor can present a small but unique gift to the gift celebrating the success of the deal. How much should a realtor spend on a closing gift? 

The realtor’s budget is included in such cases. He/she should think twice about the deal value and future outcome before buying a gift for his client. Because the budget for a closing gift comes from the commission he/she is earning by completing the deal.

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