In kindergarten, a gold star was enough. In fifth grade, a “job well done” sufficed. At your favorite Italian restaurant, where they serve the best gelato you have ever had, a 15% tip is always appreciated. But what about your realtor? Do you tip your real estate agent?
It all depends on you. Whether or not to tip an agent relies solely on discretion. There is no law that mandates clients to tip real estate agents. In fact, in most states, this act of gratitude is discouraged.
Why? In this article, we will review the top reasons you probably shouldn’t tip your real estate agent. But we won’t just stop there; we will discuss several ways you can thank your agent.
Why You Shouldn’t Tip Your Real Estate Agent
While it is a generous gesture to tip your realtor or real estate agent for their hard work, there are several reasons why this practice isn’t advisable. Firstly, the legal and ethical implications can be complex.
In many jurisdictions, any money an agent receives must go through their broker first and be clearly outlined within the service agreement.
And since tipping is considered an additional form of payment, it could potentially violate laws or regulations if unreported and not received through the appropriate channel.
In the end, the agents may find themselves in a tight position explaining and proving that the money received was simply a tip and not against the RESPA Act.
The RESPA Act, which we cover in our article: Can Real Estate Agents Pay Referral Fees, prohibits agents from receiving money from real estate settlement or closing companies for referring clients. Some of the companies covered in the Act are mortgage companies.
How You Can Show Appreciation to Your Real Estate Agent
Showing appreciation to your real estate agent can be as simple and profound as expressing your gratitude. A heartfelt thank you, whether in person, over a phone call, or through an email, can go a long way. It’s important to let them know that their hard work and dedication didn’t go unnoticed.
But words aren’t the only way to show appreciation. There are a few actions that speak volumes too.
Physical Gifts
To show gratitude, consider giving your agent appropriate gifts like a gourmet gift basket or gift cards to their favorite restaurant. These tokens of appreciation not only express thanks but also add a personal touch, showing that you’ve taken time to understand what they might appreciate.
Refer a Friend
If your real estate agent did an excellent job for you, why not spread the word? There is nothing an agent would celebrate more than a referral. If you want to give an agent gold, skip the actual bricks and send them a referral.
Referring your friends, family members, or colleagues in need of similar services is one of the best compliments you could give.
It’s not only synonymous with a standing ovation, but it also helps the agent grow their business.
Write a Review
There are 5.3 billion people online in 2024. Imagine what a public “thank you” note to your realtor before 66% of the global population could do for their business.
Leaving positive reviews and testimonials on platforms such as Google Reviews or Yelp would help boost their reputation immensely. Sharing your experience with others publicly showcases their competence and commitment, which helps attract potential clients.
Thank You is Enough
A simple, good old-fashioned thank you, is all we agents need. It means the world. Tipping your real estate agent isn’t a common practice or even advisable due to legal and ethical complexities.
But if you’d like to, there are many meaningful ways to express gratitude for their hard work.
Next Steps:
If you’d like to celebrate your real estate agent for all their hard work, here are steps to take:
1. Say a word: Consider expressing your appreciation to your agent verbally or in writing.
2. Make it personal: If you wish to give a gift, think about what they might appreciate.
3. Give a referral: Spread the word about their excellent service by referring friends and family who may need similar services in the future.
4. Write a review: Leave them glowing reviews on platforms such as Google Reviews or Yelp.
Thoughts? We’d love to hear how you have shown appreciation towards your real estate agent in the past! Share your stories with us in the comments below. Who knows, it could inspire others seeking ways to say ‘thank you’.
