In an era of Zoom calls, AI chatbots, and automated email drips, the idea of taking a client out for a two-hour lunch can feel… inefficient. You might look at the bill ($80 for two salads and iced teas!) and wonder if that money would have been better spent on Facebook ads or Zillow leads.
It’s a fair question. After all, technology has given us faster, cheaper ways to stay in touch.
But real estate, especially here in Florida, has never been just about efficiency. It’s a business built on trust, rapport, and the feeling that you genuinely care about your client’s life, not just their transaction. While digital tools are incredible for organization and reach, they rarely build the deep emotional loyalty that turns a one-time buyer into a lifelong advocate.
The tension between “high tech” and “high touch” is real. You want to scale your business without losing the personal connection that gets deals to the closing table. So, is the client lunch a relic of the past, or is it still your secret weapon? The answer lies in how you approach it, who you invite, and most importantly, how you measure the return on that investment.
Key Takeaways
- Face Time Drives Loyalty: In a market flooded with digital noise, in-person meetings create the emotional connection that secures repeat business.
- Referrals Are King: According to NAR data, 66% of sellers found their agent through a referral or had worked with them previously.
- Compliance Matters: Always be aware of RESPA Section 8 rules regarding kickbacks and the IRS 50% deduction limit for business meals.
- Track Your ROI: Use your CRM to log client meetings and measure whether your “relationship marketing” spend is actually generating commission income.
Florida Agents Still Swear by In-Person Touchpoints
Florida is a unique market. We aren’t just selling homes; we are selling a lifestyle. Whether you’re working with snowbirds in South Florida or families relocating to Central Florida, the client journey often involves a lot of hand-holding and local guidance.
For out-of-state buyers, you’re their boots on the ground. When they visit, a lunch isn’t just a meal; it’s an orientation. It’s your chance to show off the neighborhood vibe, explain local nuances (like HOA restrictions or flood zones), and demonstrate your expertise.
Furthermore, competition here is fierce. A generic “Happy Birthday” email is nice, but it’s easily deleted. A face-to-face conversation where you ask about their kids or their retirement plans? That sticks. In a state where many agents rely solely on automation, showing up in person is a powerful differentiator.
When Relationship Marketing Actually Moves the Needle
You don’t need to buy lunch for every single lead in your database. That’s a quick way to go broke. The key to ROI is identifying who warrants that investment.
The power of past clients and referrals
According to the National Association of REALTORS® (NAR) 2025 Profile of Home Buyers and Sellers, 66% of sellers found their agent through a referral or used an agent they had worked with in the past.
This statistic is staggering. It means two-thirds of the listings on the market likely didn’t come from a cold call or an internet lead. They came from a relationship. If you spend $100 taking a past client to lunch, and they refer you to a friend who lists a $500,000 home, that lunch just paid for itself a hundred times over.
Investors and “connectors”
Investors often view agents as business partners. A quarterly lunch to review market trends, cap rates, or upcoming off-market opportunities solidifies your role as an advisor, not just a salesperson. Similarly, “connectors” in your sphere (people who naturally know everyone) are worth the time investment because one relationship with them opens doors to dozens of others.
How to Measure the ROI (Without Feeling Sleazy)
It can feel transactional to put a dollar sign on a friendship, but this is a business. You need to know if your marketing spend is working.
Let’s look at the math. In Florida, real estate commissions typically hover around 5% to 7% of the sale price, split between brokerages and agents.
Imagine you are targeting a listing for a home priced at $450,000.
- Potential Commission: If the total commission is 5% ($22,500) and the split is 50/50 between buyer and seller brokers, the listing side brings in $11,250.
- Your Split: Depending on your brokerage split (let’s say 70/30 in your favor), you could take home nearly $8,000.
If it takes three lunches ($300 total) over a year to nurture that relationship and secure the listing, your ROI is astronomical. You can use our Commission Calculator to run these numbers for yourself and see exactly what your take-home pay looks like at different price points and split percentages.
Of course, not all agents believe lunches are worth it. Here’s why Florida real estate agent Tat Londona feels like they’re a waste of time.
Navigating the Red Tape: IRS & RESPA
Before you start picking up checks left and right, you need to understand the rules. Real estate is a regulated industry, and “wining and dining” has limits.
The IRS “Business Connection”
Gone are the days of the 100% deduction for entertainment. Under current tax laws, client entertainment (like concert tickets or golf fees) is generally nondeductible.
However, business meals are typically 50% deductible, provided they meet specific criteria:
- The expense is ordinary and necessary.
- The meal is not lavish or extravagant.
- You (the business owner) are present.
- There is a clear business connection (i.e., you actually discussed business).
Keep contemporaneous records (receipt + who attended + business purpose) to support the deduction.
Note: Tax laws change frequently. Always consult with a qualified CPA to understand your specific tax situation.
RESPA Section 8: No Quid Pro Quo
The Real Estate Settlement Procedures Act (RESPA) is strict about kickbacks. Section 8 prohibits giving or receiving “anything of value” in exchange for a referral of settlement service business.
This means you cannot say, “Send me a buyer, and I’ll buy you a steak dinner.” That’s a kickback. However, taking a client or a referral partner to lunch to discuss market trends or deepen your professional relationship, where the meal is not conditioned on a specific referral, is generally considered a normal promotional activity. When in doubt, keep it professional and focus on education and relationship building, not “payment” for leads.
New School Meets Old School: Blending Tech with Personal Touch
The most successful agents don’t choose between technology and relationships; they combine them.
If you take a client to lunch, you shouldn’t rely on your memory to track what happened. This is where your CRM (Customer Relationship Management) system becomes your best friend.
- Log the Interaction: Immediately after lunch, open your CRM and note what you discussed. Did they mention a job change? A new grandchild?
- Set an Automation: Set a task to follow up in 3 days with a handwritten note or a relevant market report.
- Track the Source: If that client eventually buys or refers someone, attribute that deal to “Sphere of Influence” or “Relationship Marketing” in your CRM so you can see the ROI at the end of the year.
If you aren’t sure how to set up a CRM that handles this for you, check out our recent webinar replay: AI Meets ROI: Build a Real Estate CRM That Grows Your Biz With You. We dive deep into how top agents use automation to free up time for (you guessed it!) more client lunches.
The Bottom Line
So, are client lunches still worth it? Absolutely. In a world where everyone is hiding behind screens, the agent who shows up in person wins the trust. Just make sure you’re doing it strategically, staying compliant, and tracking your success.
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