For centuries, all across the globe gift giving between friends and family has been a common expression of love and gratitude. However, gift-giving between professionals and clients, such as real estate agents, buyers, and sellers, is less common but it's considered one of the best practices in the industry for relationship building. Not all real estate agencies and agents invest in corporate gifts but here are 5 reasons they should:
Preparing real estate closing gifts for buyers and sellers can be a time-consuming task. It goes beyond being a thoughtful gesture, it's a representation of genuine appreciation for entrusting you with their business. Additionally, it's an act of gratitude that can yield significant benefits for your real estate business in the years to come. Both the recipient and the gift giver benefit.
Here are the top five benefits of preparing real estate closing gifts for buyers and sellers:
- Remaining Top of Mind After the Transaction: The end of a transaction can significantly impact your relationship with your clients. Giving closing gifts to your sellers and buyers helps create a lasting impression, often leading to word-of-mouth referrals.
- Building Better Long-Term Client Relationships: Building great long-term client relationships involves providing excellent service. Giving closing gifts is an above-and-beyond act that clients will remember whenever they see your gift. Ensure you put thought into each gift to make it personal for each client. Luxurious and personal gifts, such as luxury linens and dried bouquets of their favorite flowers, can leave a lasting impression.
- Marketing and Advertising Impact/Increased Brand Visibility: Preparing closing gifts can enhance your brand's visibility. Gifting clients items like a photo frame of their business with you, prominently displayed in their home, increases brand visibility when family and friends visit.
- Memorable Competitive Advantage: Excellent service leads to repeat business. Leaving a lasting impression increases the likelihood of clients returning to you when they sell their home or buy another property. People tend to favor their favorite brands, and the same applies to service-based transactions. Ending your service on a high note ensures clients will remember you and do business with you again.
- Tax Deduction: Another positive aspect of preparing gifts is that they may be eligible for tax deductions. The IRS allows businesses including real estate agencies and agents to write off closing gifts as a business expense, with a maximum deduction of up to $25 per client. Marketing and advertising expenses are wholly deductible. Consult your lawyer or accountant to know the difference.
All these benefits are invaluable to your real estate business. Therefore, we strongly advise you to carefully choose and put genuine thought into picking closing gifts for your buyers and sellers. Additionally, be sure to check the current regulations and guidelines in place within your area, as some areas require real estate professionals to adhere to specific rules when preparing closing gifts for their real estate buyers and sellers.
Always remember that each buyer and seller has a unique personality, so it's essential to prepare well. Thoughtful gifts are often more appreciated than generic, inexpensive ones, as they reflect the relationship you've built with your clients.