One of the most fervently debated topics in the real estate industry is whether or not you should give closing gifts at the end of a transaction with your buyers and sellers. Just like any situation, there are plenty of pros and cons to weigh up and both sides of the argument have plenty of valid points. Let’s take a look at some of the advantages and disadvantages associated with handing out closing gifts.
Will a Closing Gift Make You More Memorable?
Those in support of closing gifts for buyers and sellers often argue that the main reason to hand out these gifts is to make them more memorable to clients and keep their brand top of mind. This is an excellent point because a large number of people say that while they liked working with their realtor, they used someone else next time – because they couldn’t remember the realtor’s name! Keeping that in mind, giving a gift to the buyer or seller will surely help them to remember your name – especially if it is branded.
Of course, not everybody thinks this way and those who do not believe in closing gifts have argued that unless the gift is something truly spectacular – aka expensive – then clients won’t remember it 10 years down the line when it is time to move house again! At 360 Business Growth, we do not agree with that at all! Some of our best-sellers are branded Cutco knives and kitchen products. This is an item that will be used for many years to come, likely multiple times per day. That means your buyer or seller is handling your gift multiple times per day and seeing your name each time! That is going to keep you top of mind, even if some kitchen knives are not the most exciting closing gifts you could choose!
It’s Not a Gift, It’s a Marketing Ploy
Those who feel closing gifts are not necessary often dismiss them as being not true gifts because the item is branded and is there for a marketing ploy. Many believe that buyers and sellers will not keep a branded gift. However, if the item is useful and of high quality, they probably will and who says closing gifts cannot pull double duty as a gift and a marketing tool? Isn’t that the whole point of them? If you are wary of coming across as too promotional, it can be a good idea to pair branded items with consumables. There is a big difference in extravagant branding and subtle, tasteful branding. For example, you could offer a branded pizza cutter paired with a gift card to a local pizza place or a personalized corkscrew with a bottle of wine!