A lot of hard work goes into real estate sales, and when you close a deal, you may want to take some time to pat yourself on the back and maybe celebrate. However, you might want to consider one more thing before the celebration begins. Deal closing is the perfect time to enhance your business with a gift to the seller or buyer. One inexpensive gift can pay big dividends, and here are some excellent reasons why you should consider closing gifts.
Why a Closing Gift?
A thoughtful real estate agent provides gifts to the sellers or buyers after closing. Gift giving is the perfect way to express your appreciation to the buyer or seller. Your gift tells them that you value their business and that your clients are not soon to forget. You do not have to spend a lot of money, but it is essential to give your client something meaningful.
Realtor Magazine reports that almost 77% of their subscribers have given thank you and closing gifts to their clients.
Make Them Feel Special
On special occasions, you give those close to you a gift. When a client receives your token of appreciation, he or she feels important. The reason for this feeling of importance is apparent. Only those people you care about receive gifts from you.
Crunching the Numbers
It is in your best financial interest to offer sales gifts. For example:
- The median price of a home in the US is about $200,000.00.
- A five percent commission would average $10,000.00.
- Listing and selling brokers split commissions.
- The selling agent may earn about $3500.00 sales commission (70/30 split) on a typical sale.
- A closing gift of $70 is just 2% of your commission. If you are spending the recommended 10% of your earnings on marketing, 2% is a small expenditure. Providing impressive closing gifts is a very affordable marketing strategy.
Appreciation is something most people desire. No matter what you do, your actions are enhanced if you know the recipient of your actions appreciates what you are doing for him or her. When you provide a thank you gift, you tell the gift recipient that they are more than just a sales commission.
Freebies are Important
Do you know why BOGO or "buy one get one free" sales are so popular? People love bargains, but even more importantly, they love to receive something free. For example, when you look through your billfold and see a one-dollar bill, you may not be impressed. Yet, this same dollar bill becomes something special when you find it lying on the ground, and the owner can’t be found.
Top of Mind
Unexpected pleasant surprises (like a closing gift) can leave a lasting impression in the minds of your clients. Every time they use the BBQ set, cutting board, or cookie jar you gave them, your face, name, and services come to mind. They think about you subconsciously, so you stay at the top of their minds for many years. Gifts help to keep clients from forgetting you.
When you stay "top of mind" with past clients, which real estate agent are they likely to recommend to others? If they need someone to list their home or find another property, who will they call? Your gifts can help you earn repeat business, and it is a cheap strategy for earning more income. Reap the benefits of repeat business.
Your gifts are likely to make a good impression on your clients. When they write a review about you, their customer testimonials will be more positive when they are impressed with you and your services. Good online reviews help direct prospects and are the deciding factor when people choose real estate services.
Closing gifts are one of the most valuable marketing tools today's real estate agent needs to take advantage of. After the sale, include an impressive thank you gift, and your customers will not only appreciate you, they will feel appreciated. This critical marketing gem may cost you as little as 2% of your commission, which may be one of the best investments you can make. People love freebies, and your gifts can put you on the road to more referrals and better customer testimonials.