How Much Do Realtors Spend on Closing Gifts? (2026 Guide)

Closing gifts are more than just a transaction formality; they are a bridge to future referrals and a lasting professional relationship. As we move through 2026, the expectations for personalization and utility have evolved, but the core question remains: What is the right budget?

The Typical Budget: $50 to $300+

Realtors typically spend between $50 and $300 on closing gifts, with the exact amount often reflecting a percentage of the commission earned from the property sale.

A common guideline is to spend around 1-5% of the gross commission on a closing gift. For example, if a realtor earns a commission of $7,000, they might budget approximately $350 for that client. However, seasoned agents in 2026 are increasingly viewing this budget as a "Client Lifetime Value" investment rather than a one-time expense.

Strategic Allocation: The "Year-Round" Approach

Instead of blowing the entire budget on closing day, many successful agents split this amount. You might spend $150 on a significant closing gift and reserve the remaining $200 for smaller, thoughtful touchpoints throughout the year (e.g., home anniversaries, holidays, or birthdays). This approach ensures clients feel appreciated beyond the initial transaction and fosters loyalty and referrals long after the boxes are unpacked.

Market Tiers and Expectations

• Modest Markets: In standard residential markets, realtors often opt for practical and personalized gifts within the $50-$150 range. Think custom cutting boards, high-quality welcome mats, or local artisan gift baskets.
• Luxury Markets: High-end realtors operating in luxury markets often spend substantially more to match the market's expectations. For multi-million dollar listings, gifts can range from $500 to over $1,000, including items like sketch portraits of the home, smart home technology packages, or rare vintage wines.

The Tax Reality for 2026

It is important to balance generosity with business smarts. For 2025/2026 tax returns, the IRS business gift deduction limit generally remains at $25 per person per year.

This means that while you may spend $150 on a gift to build the relationship, you can typically only deduct $25 of that amount as a business expense. Many realtors accept this difference as a necessary marketing cost—investing in the relationship is often worth far more than the tax write-off. Always consult your tax professional for specific advice regarding branding and promotional item deductions.

Trending Gift Categories for 2026

• Personalization is King: Items with the client’s name (not just the Realtor’s logo) are trending. Custom labeling turns a generic wine bottle or candle into a keepsake.
• Smart & Sustainable: With 2026 design trends favoring "organic" and "smart" living, gifts like smart home hubs, ring doorbells, or eco-friendly localized goods are hitting the mark.
• The "Unpacking" Kit: Practical luxury is in. A basket filled with "first-night" essentials—fancy hand soap, high-end paper plates, champagne, and chocolates—saves the client a trip to the store on a busy moving day.

The Bottom Line

Ultimately, the goal of these gifts is to leave a lasting positive impression, strengthen client relationships, and encourage referrals. Balancing thoughtful gifting with consistent follow-up and excellent customer service is key to achieving these objectives.

For more information and ideas for closing gifts that stick, you can visit iCustomLabel's Closing Gifts Collection.

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