Should You Tip Your Real Estate Agent?

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When it comes to tipping service providers, there is perhaps no country in the world that matches the United States. From restaurants to salons, consumers here are expected to leave a gratuity for good service, and it’s not uncommon to see 15-20% tips routinely added to bills. Even more recently we are seeing drivers and baggage handlers getting tips for their services. But this leads to an interesting question for those who are in the process of buying a home: Should you tip your real estate agent? While it may not be a question you have considered, there are certainly opinions on both sides. In this post, we’ll explore whether or not it’s worth it, and what activities in a real estate transaction may be above-and-beyond enough to tip for.

What’s The Standard?

Do I need to tip my real estate agent? There is no standard expectation that you will tip your real estate agent. Tipping your real estate agent is a very uncommon practice and isn’t fully encouraged, but it does happen.

what kinds of activities might be considered “above and beyond” in a real estate transaction?

One example might be if your agent goes the extra mile to help you find a lender or broker to secure financing. Buying a home is a complicated process, and anything that makes it easier is worth noting. This is especially effective if the real estate agent is able to find you a lender that saves you thousands on the deal.

Another reason you might want to tip your real estate agent is simply to express gratitude for a job well done. Maybe you’ve come to terms with the fact that you’re a difficult person to please, however, your agent was able to meet your expectations. If you feel that your agent has truly understood your needs and worked hard to find the perfect home for you, tipping can be a way to say “thank you” and show your appreciation.

That being said, if you don’t feel that your agent has done anything particularly exceptional or gone above and beyond the call of duty, there is certainly no obligation to tip. Real estate agents are typically well-paid for their services, and while they work hard to ensure a successful transaction, tipping is not a standard or expected practice.

Express Your Gratitude in Other Ways

Rather than tipping your realtor, the best thing you could do for them is introduce them to someone you know is also looking for a home. Additionally, agents also appreciate it when clients leave great online reviews about the service they received. So if you’re wanting to express your gratitude in other ways, keep these two alternatives in mind.

What’s Important to Consider

The decision to tip your real estate agent ultimately comes down to whether or not you feel they’ve done something truly exceptional. While it’s not standard practice, there may be times when going above and beyond results in a more successful transaction or simply a more pleasant and stress-free experience for the buyer. If you do decide to tip, it’s always appreciated but never expected, and it’s important to remember that your agent should never request or expect a gratuity. At the end of the day, it’s up to you to decide whether or not you feel your agent has earned one.

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