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July 26, 2007
Front Page Forum: Gifts for Brokers?
On the Brownstoner Forum today, a reader writes, "I'm buying my first apartment and the closing will take place in a few days. Do I get a gift for my real estate broker?" With nine responses so far, the answer is a unanimous "No!" If we recall correctly, the listing broker who sold our apartment in Manhattan for us gave us a gift, and other commenters note having received gifts from brokers like a book about Brooklyn and a stress ball in the shape of a house. But this one comment kinda sums up the consensus about giving presents to brokers: "You got her a gift: 3% of the value of your new apartment." If any brokers are reading, have you ever gotten gifts and what do you think of the practice?
Do I Get a Gift for my Broker? [Forum]
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Comments
I think the gift giving thing has gotten way out of town. My wife thinks she's supposed to give OB a gift after delivery of the baby. What's next? A gift for my dentist?
You're the CLIENT. You should get a gift if anyone is getting a gift.
Posted by: Anonymous at July 26, 2007 10:33 AM
Maybe I'm just confused, but isn't the broker representing the SELLER, not the the buyer?
In that case, wouldn't the seller give the gift?
Posted by: supergirl at July 26, 2007 10:43 AM
the broker should buy a gift for the buyer...not so much for the seller since they tend to make out pretty well.
when we bought our condo, we received a case of wine + flowers
Posted by: fred at July 26, 2007 10:46 AM
Often there is a buyer's agent AND a seller's agent and they split the commission. Usually THEY give YOU a housewarming gift.
Posted by: Carol Gardens at July 26, 2007 10:47 AM
agreed. it's bad enough having to 'tip' the title insurer at closing.
Posted by: z at July 26, 2007 10:51 AM
Our very kind broker gave us a generous gift certificate to one of Brooklyn's top restaurants when we bought. He was the "buyers broker", and split the commission from the sellers with their broker. So we didn't actually pay him, but he still got a lot of money from our sale.
Posted by: New Brooklynite at July 26, 2007 10:53 AM
Buyer's brokers are vultures who never have their client's best interests in mind. Seller's brokers should get a gift for their clients. And yes, the commission is sufficient giftage for the broker.
Posted by: Jonz at July 26, 2007 10:57 AM
When we sold our apartment through Aguayo a few years ago, we were incensed that our very useless broker gave the buyers a gift. We wrote the check to her! Once we went into contract she was m.i.a. and no help to us.
Posted by: still pissed off at July 26, 2007 10:58 AM
When I bought my vacation home in upstate New York, my broker gave us a lockbox and a book on septic tank maintenance. Weird but thoughtful.
Posted by: spongebob at July 26, 2007 11:00 AM
what's that Hunter S. Thompson quote about the music industry? oh here it is: "The music business is a cruel and shallow money trench. A long plastic hallway where pimps and thieves run free and good men die like dogs. There is also a negative side."
This is a utopian vision compared to the real estate in a "boom" market. I almost think this is a bogus question FROM a broker trying to start a weird and completely ludicrous practice.
Posted by: broke down engine at July 26, 2007 11:29 AM
Our upstate agent gave us a bottle of champagne and also broke out a second bottle at the closing, so everyone could celebrate. I thought it was a nice touch.
Posted by: Anonymous at July 26, 2007 11:33 AM
What are you kidding. The gift we brokers receive is the opportunity to work with all of you wonderful buyers and sellers! Gifts should never be mandated in any profession of course or else they really aren't gifts.
Posted by: Anonymous at July 26, 2007 11:34 AM
Why not? In the past 10 years, we seem to give gifts to everyone: bride-requested bridal showers, registry gifts, office gifts for everyone in the office, "tip" jars at coffee shops...
Posted by: supergirl at July 26, 2007 11:40 AM
I have been both a real estate agent and a real estate buyer. Typically the agent should give the present to the buyer. I received a $100 gift certificate to a restaurant in the area I bought my previous apartment from my agent, and he received a large commission from the sellers of the apartment. I have also sold a place and gave a present to the buyers.
Posted by: Agent and Buyer at July 26, 2007 11:42 AM
I have been both a real estate agent and a real estate buyer. Typically the agent should give the present to the buyer. I received a $100 gift certificate to a restaurant in the area I bought my previous apartment from my agent, and he received a large commission from the sellers of the apartment. I have also sold a place and gave a present to the buyers.
Posted by: Agent and Buyer at July 26, 2007 11:42 AM
Until I felt too guilty to continue, whenever I saw a jar that said, "Tips for college," I always inserted a slip of paper that advised, "Go to a SUNY school."
Posted by: Anonymous at July 26, 2007 11:45 AM
I dont think a gift for a broker is necessary either as they are well paid professionals (I dont give gifts to my lawyer or my accountant). But so many of the posters are complaining about tips/gifts to service personnel and personal friends. If you can afford to live in a multimillion dollar home, loosen up the purse strings a bit!
Posted by: Anonymous at July 26, 2007 12:07 PM
What is a broker supposed to do after you go into contract, still pissed off?
Posted by: Annie at July 26, 2007 12:20 PM
I think brokers should give gifts, but when giving gifts I really like
http://www.justbecausebaskets.com/
They do really nice custom real estate broker baskets--it takes the confusion out of what to give. I am curious to hear what other people hav given...
Posted by: sarah at July 26, 2007 12:43 PM
Our broker gave my husband and I a box full of bbq food (meat, poultry, fish) 2 weeks after our closing after we moved into Fort Greene. I don't eat meat, but it was a nice thought.
We did not gift our Broker, it was my understanding that the commission covered that...
Posted by: NK at July 26, 2007 12:44 PM
I always buy a gift for the sellers of a property. I always buy a house warming gift for the buyers as well.
Mnay of my agents receive flowers, candy, from the buyers and sellers. In a city that is less inhabited by peple who perform their job well, I always make sure I show my appreciation. It is a New York thing. I know, you don't tip
service people either. I always receive cards and flowers when I do residential pwork. My parents, New Yorkers, taught me to show my appreciation. That way when you need a favor, you receive a favor. I haven't bothered to read the responces, I'm sure they are insipid. You must be over eighteen to use this website, correct? No I haven't proofed my response, fodder for the ...on
Posted by: Anonymous at July 26, 2007 12:51 PM
I always buy a gift for the sellers of a property. I always buy a house warming gift for the buyers as well.
Mnay of my agents receive flowers, candy, from the buyers and sellers. In a city that is less inhabited by peple who perform their job well, I always make sure I show my appreciation. It is a New York thing. I know, you don't tip
service people either. I always receive cards and flowers when I do residential pwork. My parents, New Yorkers, taught me to show my appreciation. That way when you need a favor, you receive a favor. I haven't bothered to read the responces, I'm sure they are insipid. You must be over eighteen to use this website, correct? No I haven't proofed my response, fodder for the ...on
Posted by: Anonymous at July 26, 2007 12:51 PM
I don't know. I sorta think a $100K or $120K commission (to someone I don't really trust but am told I have a need to use) for selling a semi-decent three bedroom in a semi-decent area is sufficient, but maybe 12:07's right and I should loosen the purse strings.
Posted by: Biff Champion at July 26, 2007 12:53 PM
As a broker, I always gift a gift to both the seller and the buyer. I've never expected a gift from either seller or buyer but to my surprise, one of my buyers has just offered me and my family a week at his beach house for helping him with a very difficult purchase! Very thoughtful and appreciated.
Posted by: Anonymous at July 26, 2007 1:03 PM
I think brokers are in the best position to be giving out gifts. Like this one today ...
“‘The numbers are the numbers,’ says Tom Kunz, CEO of Century21 Real Estate, a division of privately held Realogy. ‘People are going to come home tonight, have dinner, turn on the TV, and see that home sales declined. They’re going to look at that and say ‘Hell, I’ll sit on the fence.’”
Posted by: cgwatcher at July 26, 2007 1:28 PM
I have received occasional gifts from clients, but totally do not expect them, and I always get a gift for my clients, even renters.
If you really like your broker, the best gift you can give him/her is to refer your friends, relatives, etc. A nice card is also appreciated.
Posted by: babs at July 26, 2007 1:31 PM
Biff, You do know that the agent doesn't get to keep that whole $100k, don't you?
Posted by: Anonymous at July 26, 2007 1:43 PM
hell no! i just closed on an apt and my broker too me and a few frends out to dinner. they should get you a gift, they're not good brokers if they don't.
Posted by: anon at July 26, 2007 1:50 PM
We closed and then went with our Broker to a celebratory lunch at Cipriani - his suggestion. The tab came and my girlfriend insisted on paying it. I about strangled her....
Posted by: Anonymous at July 26, 2007 2:02 PM
Yes, 1:43, I do realize that, but I admittedly am not sure approximately how much of it they typically keep. My guess is around 50% and give the other 50% to "the house", i.e., Corcoran, BHS, etc. Is that about right? Whatever it is, I still find the thought of tipping on top of such a large number appalling, given the amount of work, or lack thereof, in selling in the market over the past few years. If anything (and I'm shocking even myself by defending this group) the real estate lawyers seem to put in as much, if not more effort, and get a fraction of that amount for their work.
Posted by: Biff Champion at July 26, 2007 2:55 PM
Our broker at Brown Harris Stevens gave us good champagne twice, both when we we sold and when we bought, with her. She repped us on both. And she sent me a gift when I had to have surgery, not long after that. I took her to a modest lunch and paid, because she did such a good job and went the extra mile. I'm the type to gladly reward extra good service. When these days it's like wherever you go, you can barely get people to do the bare minimum of their jobs! I was talking with a friend recently about how nurses in doctors offices are so disorganized and incompetent, more and more, that when we get a good one we are falling over in gratitude so we bring them gifts and cards. Not to bash nurses, but I do think nursing is a field just like real estate, that lots of people got into only because there were lots of openings and opportunities recently, not because it was their true calling in life. Anybody who in a sea of ho-hum service is doing an awesome job, should be thanked for it! In addition to getting commissions.
Posted by: Anonymous at July 26, 2007 2:58 PM
I sold a coop and bought a house. Gave my coop broker a box of Jacques Torres chocolate, the house broker gave me a midprice bottle of Champagne.
Both in my opinion did a great job and worked together a little to coordinate my sell and purchase and keep up with closings. A small token of celebration and appreciation is nice to give, it does not have to be elaborate.
Posted by: Anonymous at July 26, 2007 3:02 PM
I just gave a broker a huge commission this year on a brownstone...I was expecting flowers, a thank you card, anything...It really was just the icing on top of a 'not-paying-attention-to-the-details' cake. I've told all my friends to avoid giving their 6% to this broker....
Posted by: bitter seller at July 26, 2007 3:03 PM
I've bought twice in NYC and both times I dealt directly with the owner so I don't have any experience, but I'm shocked that it's not standard operating procedure for the corcoran, BHS, etc to give gifts to buyer and seller. I mean, in my business, I send out gifts annually to all my clients and receive gifts too. Even the smaller guys like the printers who only get about 15k from me each year sends a great Omaha Steaks thing every year.
Isn't that just doing business and keeping a custumer coming back?
Posted by: Anonymous at July 26, 2007 3:25 PM
Thanks for sharing bitter seller. It would seem to me, as reinforced by 3:25pm, that if nothing else, it's good business for a broker to give the buyer and/or seller a token of their appreciation for the business. Not surprising there seems to be so many FSBO's springing up.
Posted by: Biff Champion at July 26, 2007 3:33 PM
Biff, if one agent is involved, they get the whole 50% (or thereabouts). If there are buyer's and seller's agents, then each would get 25%.
Posted by: Anonymous at July 26, 2007 4:50 PM
Thanks 4:50. Sounds like a nice chunk of change. I realize they pay for their own advertising and other costs, but, as I said, a nice, presentable and realistically priced place still seems to go relatively quickly.
Posted by: Biff Champion at July 26, 2007 5:01 PM
My buyer's broker sent me 8 bottles of decent champagne. Not bad. Seller's broker didn't do anytthing, but sleeping with me would've been a nice gesture.
Posted by: Anonymous at July 26, 2007 6:05 PM
I am an experienced broker and for the record: we are not allowed to give gifts that exceed a certain amount (I think it's something like $35.) It is considered a bribe to the seller and a future bribe for the buyer. I know I know. I don't agree with this and usually will give a little something to my good clients to keep an ongoing relationship...
Posted by: Anonymous at July 26, 2007 6:41 PM
6:41, it's not the cost, it's the thought.
If I had a broker who worked hard to sell my apartment and got a good price for it or even bought the perfect apartment from a broker who showed me many appropriate apartments and really listened to what I wanted, I might give them some flowers or a bottle of wine.
If I were a broker, I would ALWAYS give some sort of token gift to both buyer and seller, unless I did not want their business again.
Posted by: Anonymous at July 26, 2007 8:53 PM
Shit, the best gift i ever got was a a little oral after i found this girl an apartment in Chelsea. I knew she wanted to bang the whole time i was with her. but when we found the place she loved she went to town.
Another great gift was an eightball from these investment banker kids, good guys... they actually dropped it off at my office in a box of choclates. cute, right..
what else..
an investor i work with once took me to a rub and tug with him, that was fun, he paid for the massage and the extra forty for the hj...
with all the stunod clients i deal with , i've had a couple good ones... anyone else get cool things like that?
Posted by: Tommy Piscatelli at July 27, 2007 12:00 AM
Dear Brownstoner,
I just bought a used car. The salesamn was really nice - a snappy dresser, he really seemed to have our best interest in mind. We saw something we liked, but it was a lot more than we had planned on spendng. He had us wait in his office while he went and talked to his boss. Because he liked us so much, he convinced his boss to give us a special deal, only we had to make a decision quickly before his boss changed his mind. My wife Mabel was wondering if we should have left the nice man a tip for all his hard work and his willingness to really put himself on the line with his boss and all. Do you think we should have tipped him?
Posted by: Anonymous at July 27, 2007 9:33 AM
9:33, that man sounds absolutely wonderful. However, he still could have learned a thing or two about customer service from a real estate broker. For instance, he could have also continued showing the car to other potential buyers despite making you feel you had a done deal (just to make sure you didn't feel slimy for not paying two or three times what the seller paid three years ago). He also could have made up stories about already having multiple offers above the asking price, which you would have to beat, but would love for you to be the one to get the car.
Posted by: Biff Champion at July 27, 2007 10:32 AM
i got my broker a small gift card after she sold my house - i know it's not necessary, but i appreciated and saw how she was putting extra effort in and didn't pressure me to sell to the lowest bidder which is what i was expecting...
Posted by: Anonymous at July 27, 2007 5:24 PM
Yeah I gots your gift right ere!
Posted by: vinnie at July 28, 2007 3:17 AM
I bought an investment (rental) home in another city a few years back, and I gave my agent a gift certificate to a nice restaurant in the area. I just bought another house through him, and will do the same.
I think a lot of agents are overpaid these days, with the high price of homes, but in this area it's not so inflated. Either way, the commission the agent receives is not a tip, that's his or her salary.
My agent gave me exceptional service, relentlessly going far above and beyond the call of duty to insure my satisfaction and a smooth transaction all the way.
In the current sale (as just one example,) he and the seller's agent each gave up part of their commission to bridge a gap between my absolute maximum and the seller's absolute minimum. So giving him a token of my deep and sincere appreciation is not at all out of line.
Of course, if you are dissatisfied or unimpressed with services rendered, then tipping is absurd.
Posted by: JS at August 2, 2007 1:36 AM
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