Real Estate Agents Lose Thousands Of Dollars By Not Thanking Clients With A Gift

July 1, 2012 - PRLog -- Six in 10 people aren’t thanked with a gift from their real estate agent when they buy a home, but two-thirds would recommend and rehire them if they did.

The 2nd Biannual Real Estate Agents Gifts Survey of 205 respondents found that only 39% of homeowners had received a thank-you gift from their real estate agent.

“Most clients buy several homes before they receive a thank you gift,” said Elizabeth Ball, of online gift company It’s In The Stars at http://www.itsinthestarsonline.com, which conducted the survey.

Of the 61% who had bought two properties, 38% received a gift for their second home. Of the 38% had bought three, 46% received a gift for their third property and of the 7% who had bought four or more properties, 67% received a gift for their fourth home.

“But while clients who buy multiple homes are more likely to receive gifts, it is not necessarily because they buy more expensive homes,” Elizabeth Ball said.

Of those buying their second home who receive a gift, 40% paid over $1 million while 51% paid only $500,000-$1 million. Of gift recipients who bought a third home, 50% spent $1 million or more, while 56% paid $500,000-$1 million.

A third (32%) buy homes because they’ve had babies or the kids need more space, while 18% each buy homes as investment properties or to be closer to work, school or family. Fourteen per cent are single people buying their first home, couples buying their first marital home (11%), those who have down-sized (4%) or they’ve sought a sea-change or an escape to the country (3%).

“Give gifts which relate to your client's life stage,” Elizabeth Ball said. “You shouldn’t give the same types of gifts to everyone.”

Of the homebuyers who did receive gifts, 31% received wine or champagne, food hampers (17%), promotional items featuring the real estate agency logo (12%), flowers and plants (9%), homewares (8%), personalised gifts for the homeowner and/or family (6%), restaurant meals and gift certificates (5% each) and entertainment tickets (4%).

“You should take great care not to give clients poorly chosen, boring, cheap or self-promotional gifts,” Elizabeth Ball said.

Of those who received gifts they thought cost $50 or less, 72% had received promotional merchandise, while 63% received flowers and plants, homewares (56%) and wine/champagne (55%).

However, restaurant meals (89%), personalised gifts (83%), food hampers (77%), gift vouchers (67%) and entertainment tickets (57%) were thought to cost over $50, with 67% perceiving personalised gifts as costing more than $100.

The top five gifts which would encourage clients to give recommendations (81%) and repeat custom (81%) are homewares, entertainment tickets (72% each), personalised gifts (75% and 67% respectively), food hampers (69%, 66%), and gift vouchers (67% each).

“You throw thousands of dollars away by not giving thank you gifts,” Elizabeth Ball said. “Of those clients who received nothing, an astonishing 94% would tell friends, family and colleagues if they had received a gift from their real estate agent, 72% would recommend them and 73% would rehire them.”

Overall, 82% would tell their family and friends what gifts they received, 66% would recommend the agent to others and 64% would buy another house through them.

“But don’t give your clients promotional merchandise with your logo: it costs you literally in valuable word-of-mouth,” Elizabeth Ball said.

Only 64% would tell family and friends if they received promotional merchandise as a gift, only 40% would recommend the agent and only 36% would become a repeat customer.

“You should select your client’s gift wisely to ensure it has special relevance. One special gift could ‘earn’ you tens of thousands of dollars in referrals,” Elizabeth Ball said.

Elizabeth Ball writes the daily gift-giving news blog, Gifts By The Stars http://www.itsinthestarsonline.com/ and runs Australia’s luxury astrology report company, It’s In The Stars at http://www.itsinthestarsonline.com whose personalised hardcover astrology reports have been delighting couples and parents as unique gifts since 2005.