How Much Can A Realtor Give As A Gift

How Much Can A Realtor Give As A Gift? Resolved

Last Updated on April 22, 2024 by Kimberlee Johnson

With experience in the real estate industry, I understand the value of thoughtful gifts. They can significantly influence the relationships you establish with your clients.

But how much can a realtor give as a gift?

And as someone with connections with different realtors, I’ve come to understand the essence of gift-giving in this industry, and I’m here to share my insights with you.

Today, I’ll share practical advice on how much you can give as a realtor, when it’s okay, and how it can benefit you and your clients. So, keep reading.

How Much Money Can A Realtor Give As A Gift?

two men holding money

Generally, the maximum amount a realtor can give as a gift is $25 for each person per year. 

Realtors should always check the laws in their state before giving a gift to ensure that they comply. 

“A forever real estate agent understands that the concept of home is predicated on the many changes life can bring, and it doesn’t start—or end—with the transaction.”

 Gino Blefari, Berkshire Hathaway Home Services CEO

Some states, such as California [1], have established specific limits on how much money a realtor can give as a gift, which varies depending on the type of gift. 

Additionally, realtors should consider the client’s needs and wants when selecting a gift. Gifts should be personalized and chosen in the client’s best interests.

But how much money should you give for a confirmation gift?

Is It Common For A Realtor To Give A Present?

Yes, realtors give presents to buyers or sellers when they close on a property. 

They offer small gifts to their clients to thank them for their business, but these are usually small tokens such as a bottle of wine or a box of chocolates [2]. 

But realtors don’t need to give presents whenever they always close a deal. 

Why? because realtors are typically paid a commission from the sale of a property and don’t have a lot of extra funds to purchase gifts for their clients. 

And giving a present can be a conflict of interest and could create a situation of undue influence. 

So, it is best for real estate agents to focus on providing great customer service and advice to their clients rather than giving them presents. 

It builds trust between agent and their clients, which is essential for successful real estate transactions. 

Can Realtors Offer Cash As A Closing Gift?

Realtors often provide a range of services to their clients, but they cannot offer cash as a closing gift. 

It’s because real estate agents cannot provide value to their clients in exchange for their business. 

However, some agents may offer their clients discounts or other incentives, such as free services, to say thank you for their business. 

“A well-chosen gift can turn a client into a friend, and a friend into a lifelong advocate for your real estate business.”

Howkapow Gift Site

But if an agent does offer cash as a closing gift, there may be legal issues to consider. 

Some states require that any financial incentive offered in a real estate transaction must be disclosed to the buyer and seller before the contract is signed. 

A cash incentive could also be viewed as an attempt to influence the other party’s decision, which is unethical. 

Furthermore, agents may be subject to various fines and disciplinary action if found in violation of these regulations. Therefore, agents should avoid offering cash as a closing gift.

Find out if it is considered rude to give money as a gift here.

Do You Give Presents To Your Realtor After The Sale?

gift box with ribbon

Yes, although it is unnecessary, you can give your realtor a present since it is a nice gesture and a way to show appreciation for their hard work. 

Many clients give a gift to their realtor out of gratitude for guiding them through the home buying or selling process. 

It is also a way to thank them for their time and effort throughout the transaction. 

When deciding on a gift, think about what your realtor might appreciate. 

Some clients give a gift card to a local restaurant, a nice bottle of wine, or a homemade item like a basket filled with local goodies. 

And again, you are in no way obligated to provide a present and should only do so if doing so is within your means.

A thank you card is an equally thoughtful and appreciated gesture that does not cost anything.

Is It Okay For Realtors To Accept Presents From Clients?

No, realtors are typically prohibited from accepting gifts from clients. 

This is because gifts can be seen as a form of bribery or influence that can cloud the judgment of the real estate agent. 

But if a real estate agent has received a gift from a client, they must report the gift to their broker or supervisor.

Accepting client gifts can be seen as a conflict of interest and lead to a breach of the real estate agent’s fiduciary responsibility to their clients. 

Plus, realtors need to ensure they follow their state’s rules and regulations about gift acceptance since each state has different laws and regulations governing the acceptance of gifts. 

Also Read: How To Politely Refuse A Gift Of Money?


Can a realtor offer gifts for referrals?

Yes, as long as realtors follow the rules established by their state’s real estate commission, they may offer gifts in exchange for referrals.

The type of gift and its value should also be disclosed to all parties involved as part of the referral agreement.

Can realtors offer freebies or giveaways? 

Yes, it is okay for realtors to offer freebies or giveaways as long as they are within the guidelines of their local real estate board and do not violate any laws. 

These giveaways can be a great way to attract potential buyers and build trust and loyalty with existing clients.

Can a realtor give the buyer a commission?

Yes, a realtor can give the buyer a commission as part of the deal. This commission can come from the property’s sale price and is often used to cover the realtor’s fees.

Final Thoughts

Realtors can give generous gifts to their clients, but they should always be mindful of the rules and regulations of their local real estate board. 

By taking the time to research the maximum gift amount allowed and understanding the laws surrounding it, a realtor can ensure that they are providing the best possible gift to their clients.


Kimberlee Johnson
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