Over our 40+ year history, Golf Property Analysts has been privileged to help owners and clubs market for sale numerous golf course and club properties. During those assignments, we’ve often called upon our skills and experience in valuation and advisory roles to achieve the best results for our clients. Without question, our clients have achieved the best results when allowing us to employ a comprehensive approach and process.
While proper pricing of any property is always critical to generate the most interest, we’ve learned that there are several factors involved in establishing proper pricing that can contribute to the overall effort.
Understanding a specific property’s market, its competition and the opportunities present in the market only begin to paint the picture of how a golf property is best marketed, and to whom. An objective analysis of the specific property is also in order both physically and economically. Many clubs exhibit deferred maintenance ranging from those needing urgent, significant repairs to those infrastructure items (irrigation, roofing, HVAC, cart paths, etc.), that while possibly still operational, may be nearing the end of their useful life. The buyer will do their due diligence. It’s incumbent on the seller to have an objective perspective on what to expect from that due diligence.
Accordingly, we advocate and provide comprehensive golf property disposition consulting & brokerage services designed to ensure that our clients have considered all the elements necessary to accomplishing their goals in selling their golf courses and clubs. Our approach includes the following elements, which depending on the specifics can be modified or consolidated to meet the client’s needs:
- Client Goals Analysis – Establishment of client goals, including timing, investment return, debt elimination, etc.
- Market Analysis – Realistic identification of market and opportunities
- Club Culture Analysis – What is the club’s culture and does it need to change?
- Property Analysis – Identification of property elements needing attention
- Economic Analysis – Income/Expense history and potential
- Valuation & Pricing Analysis – Asking price analysis and establishment of realistic expectations – including consideration of client’s timing goals
- Timing – When should property be marketed to achieve timing goals and best pricing?
- Marketing Methodology – Traditional brokerage, Auction, Hybrid Auction, Limited Parties
This comprehensive approach to golf property disposition can be structured in a variety of ways and allows the seller to develop a sound Exit Strategy prior to exposing the property to the market. The focus is on going into the marketing of a golf property with as much knowledge and information as possible and having established the client’s goals in order to target the most likely buyers at the best pricing levels for the property’s potential and to meet the objectives of ownership in the most timely manner.
We’ve seen many properties marketed prematurely, at unrealistic pricing or to the wrong universe of potential purchasers. Any of these can result in extended periods on the market and ultimately being devalued by getting “stale”. There’s no “one size fits all” approach that’s best because each and every club has its unique strengths, weaknesses, opportunities & threats (SWOT). An objective SWOT analysis is most helpful in getting the marketing of a course off to a good start. It’ll help enable a successful marketing of your golf course or club property.