Ron, now you're talking.  I don't provide closing gifts to my clients - my level of service is my gift to them.  However, I do provide a small gift to my "raving fan" referrals.  In most cases I will provide a piece of a crystal collection - the more the referrals they provide the more complete their crystal collection becomes.

How about a plain, simple "Thank You".

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I refer people to my SOI; and a "Thank You" is perfect. I get referrals from my SOI; and they like to hear another human being say "Thank You".

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Not everyone's palm needs to be greased for doing something that is nice.  Why don't you try it some time!?!

Hmmm... not legal to give anything for a referral to an unlicensed person in Florida.  Might want to check your state laws regarding this practice.

Personally, I refer people to professionals that I believe provide excellent service.  I've never been compensated by anyone for referring business to them... don't think I've even received a 'thank you' card.

Ron:

Where in the world have you been?

We are considering a party or luncheon, at the end of the year.  We will invite anyone who closed with us that year, and anyone who referred us.  and have some prizes and recognition there.  For each referral, home purchased, etc. that year your name would be entered in.  We want the grand prize to be a good one so we are working on it.  

We are also inviting some of our most used suppliers (mortgage, title service, inspectors) and asking them if they would like to donate anything to the referral raffle.  And our principle and managing brokers will be invited.  We hope to make it a must do event that is talked about.

Shelly

Shelly:

I will be coming to the party.  I would like to win a trip for two to Italy.

Been there before and just loved it.  Two week stay please.

Ron in Florida, the law clearly states that you can not compensate an unlicensed person ever, period.  End of story.

http://www.ncrec.state.nc.us/bulletin/spring91bulletin/referrals_revisited.htm

There is an article from an agent in NC, but same applies to us in Florida.

"The Party" is very popular.  My BIC does this regularly for all clients, other Agents, referrals, friends, etc.  Everyone is invited. Usually has a New Orleans theme, she's a huge fan of Jazz.  Always well-attended.

She usually finds the entertainment while in New Orleans and schedules the party around his/her tour schedule when they're somewhere in Southern New England.

That's for the grown-ups.  To include everyone, we have a local ice cream place that is well-known.  We do an ice cream social every summer and invite everyone!  Free cones all around!  It generates a lot of business for the owner and my daughter now has a summer job out of it! 'Bout time she started earning her keep.

Ron, Joe, and Phil....

It might be splitting hairs; however, the gesture of a gift is more in line with a housewarming gift rather than a perception of payoff for  the client purchasing a home.  It's always easy to say "thank you" and any agent that doesn't, IMO, is pretty foolish.  I'm sure it is not just a "Southern Thang" for folks to provide housewarming gifts and for new buyers or their friends hosting housewarming parties.

As far as the gift...we're all in the business of real estate, but everyone of us is in the business to market and promote ourselves to past, current, and future clients.  Every thing we can do that sets us apart for other companies or agent is essential.  

Do I think a $50 gift card, brass plaque, tree, etc., is going to be the difference between my client remembering me...ABSOLUTELY I DO!  I want them to remember me first for my advice and counsel that I provide to them. I want them to remember me for the service I provide to them before and during the sale.  I want them to remember be for guiding them through the process of the sales transaction/closing.  And...I want them to remember me for ANYTHING that sets me apart after the sales transaction is completed.  So...if I providing them a "housewarming gift" as a THANK YOU, coupled with a verbal THANK YOU...and a few days later, their receipt of a note telling them THANK YOU....and it leads to a referral from them or a subsequent sale and purchase by them...then I'm all for it!  When you're also competing against other outstanding agents that are setting themselves apart with GREAT service, as well, then you bet your bippy that I'm doing what I can to stand out, as well!

Didn't mean to hijack this thread.

Haven't figured out yet what I'm going to do for folks providing referrals.  The company I left prior to opening my own company, held "Thank You" celebrations.  It was comprised of Kids Events (the huge blow up castles and slides), Clowns, Face Painting, a Pig-Pic'n, a Blood Drive with the local hospital bringing the Blood Mobile, a Band, *** Cancer Awareness Booth, Raffles, and of course...each of us walking around speaking with our clients and talking with them in hopes they were aware of more referral clients.  If there had been a tragic event or someone within the community with a special need...we'd have a financial donation box and then make a company donation to the individual.  Our clients loved it!  It was also a great opportunity to bring some of our "invited guests" and some of our current clients we were working with to the event to demonstrate that it wasn't always about making money from them and that we were also interested in making the community better through some of our efforts.  It always seemed to work well for us and clients have asked over and over if we were going to do another event!

Ron,

You might have RESPA knocking on your door. It is a violation of RESPA to provide anything of value for the referral of business to anyone. It is illegal under RESPA for anyone to pay or receive a fee, kickback or anything of value because they agree to refer settlement service business to a particular person or organization.

Now, if you provide a small gift to someone who referred business to you based on your service without an understanding or agreement that said gift would be provided for the referral, that might be OK. Once again, so long as there was no prearranged agreement or understanding.