Do You Need It: Closing Gifts: Buyer's Guide: REALTOR® Magazine

Closing Gifts Guide

Buyer's Guide: Do You Even Need a Closing Gift?

It's become the norm that a real estate professional often gives a buyer a gift after a closing. But is it really necessary?

By Erica Christoffer October 2009

Shad Dennis, a real estate professional with Weidel, REALTORS^®, in New Hope, Pa./Lambertville, N.J., says the importance of giving a closing gift depends on several factors, such as local customs, the relationship with the client, and individual state restrictions on gifts.

Laws regarding closing gifts vary by state, with several limiting the gift amount to $25. Check with your local association to be sure you are staying within your state's guidelines.

"To me, it's always about a specific client's needs," Dennis says. "Some need a more 'practical' gift, such as a gift card to a local retail hardware store, or to a local restaurant. If I'm representing the buyer, I try to make the gift more about the area they are moving to, such as a gift certificate to a really good local restaurant. If I'm representing the seller, it depends on the reason for the move."

In many cases, real estate practitioners say service trumps the need for a gift. Ron Tiller, e-PRO^®, a sales associate at Five Star Real Estate Inc. in Grand Rapids, Mich., says he doesn't give closing gifts.

"My attorney, doctor, mechanic, plumber, electrician, and many more do not give me a gift when I pay them for a job well done," Tiller says.

Tiller finds it wiser to use his money for staying in touch with his past clients. He writes a monthly newsletter that includes home improvement tips, columns about the season's holidays, and fun facts—but he hardly ever mentions real estate. He also throws customer appreciation parties and personally delivers pizza to his clients' home on moving day.

"There is so much attention on the closing that the gift is kind of lost in the shuffle," says Tiller.

Broker Jeanean Pollock of Edinburg, Texas, says that some clients seem embarrassed about receiving a gift. Now the only way she markets to past clients is by sending holiday cards.

"I am a small company, work by myself out of my home," Pollock says. "I don't think clients expect a gift, and I think a thank-you card would probably be appreciated as much as a gift."

But Jim Fizzano, a 36-year industry veteran, believes in the referral power of closing gifts. He once bought a swing set as a closing gift for a higher-end client's family, which ended up generating six referrals.

"No one expects it, but everyone appreciates the thoughtfulness. Clients feel very close to their agent, and the gift validates the relationship," says Fizzano, president of Fizzano Family of Associates, REALTORS^®, in Media, Pa.

One real estate professional's quest for the perfect closing gift ended with her starting her own business. Tonya Stuart, founder of Gotcha Gifts in La Crosse, Wis., used to give her clients gift certificates because she found herself short on time or couldn't find something appropriate that would stand out in a home.

Nowadays, her company provides real estate closing gifts that are eco-friendly and handmade artisan pieces for decorating a home.

"That unique quality in a gift is so important because you just spent all this time and effort and emotion with a client," says Stuart.

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