Choosing a broker to market for sale your golf or club property is a big decision with many factors to consider. You’ll want answers to a few questions before making the decision. These include:

  • Is the broker familiar with golf properties and prospective buyers in the marketplace?
  • Is the broker experienced with successful golf property sales?
  • Is the broker qualified to provide objective and realistic advice & counsel on pricing and value?
  • Does the broker understand how to maximize your course’s specific price potential?
  • Is the broker familiar with the geographic market?
  • Is the broker appropriately licensed for the market or have arrangements been made to collaborate accordingly?
  • Is the broker capable of producing a professional and representative offering package?
  • Can the broker provide different options on marketing strategy?

Being familiar with golf properties is critical not only to identify prospective buyers but even more so to help sellers to identify physical issues that buyers may be concerned about and how to deal with each issue. For instance, what are the age and condition of things like cart paths, bunkers and irrigation components? Having experience is needed to ensure that the unique elements of a golf course sale transaction are understood and the seller can get reliable advice.

Some brokers are reluctant to tell a seller that their price expectations might be unrealistic because they want a listing. Often, overpriced listings can sit on the market indefinitely, ultimately devaluing the price. There are several strategies to avoid this dilemma and achieve the best price possible given a specific property’s characteristics. There are often differences, as a result of property and market considerations between market value and an achievable price, sometimes to a seller’s benefit.

Maximizing a course’s price potential starts with understanding what a buyer is actually purchasing. Golf properties are complex operating businesses as much as they are real estate, and buyers will price them on cash flow, the reliability of that cash flow, and the capital they expect to spend after closing. A knowledgeable broker will review the financials and the physical characteristics/condition of the property before going to market, identify non-recurring or owner-specific expenses that should be adjusted, and present the operation the way an informed and sophisticated buyer would analyze it. They should also recognize value beyond the golf operation, such as excess land, alternative use potential, water rights, or untapped revenue sources, and know whether those elements help or complicate a sale.

Geography matters as well. Golf is mostly a local business, and the value of any course is tied to the relevant market demographics. Even though the broker may not be local it’s imperative that he/she study and understand the local supply and demand picture and can explain to buyers why the property is positioned to succeed. The prepared broker should anticipate and be prepared to answer the questions an out-of-town buyer will ask. Familiarity with the market also helps identify regional owners and operators who may have a strategic reason to pay more than a buyer from outside the area.

The offering package is often a buyer’s first impression of the property, and it should be both professional and accurate. A good package presents the facility’s physical characteristics, operating history, membership or rounds data, and capital needs in a clear and organized way. Packages that oversell or omit known problems tend to backfire during due diligence, when the buyer discovers the issue and either renegotiates the price or walks away. Presenting the property candidly from the start attracts serious buyers and helps keep deals together.

Finally, there is no single right way to market a golf property. Some sellers benefit from broad exposure to the widest possible pool of buyers. Others, particularly private clubs and facilities where members, employees, and vendors may react to news of a sale, are better served by a confidential approach targeted to qualified buyers. In some cases a call for offers or sealed bid process with a defined deadline can create competition and bring a sale to a timely conclusion. A broker should be able to explain the advantages and disadvantages of each option and recommend the strategy that fits the property and the seller’s objectives, not simply the one they always use. While the confidential approach can be successful, sellers should know that secrets are hard to keep and golf facilities, typically being well-known among their community often experience “leaks” that the property is for sale. The best way to avoid the rumor mill is to control the information going out so that the “rumors” become accurate. Meeting with staff and clientele/members and telling them the truth is often advisable.

Last, but not least is licensing. Many brokers operate unlicensed in some areas. Real Estate Licensing is administered by each state and the rules for out-of-state brokers vary. Sellers may want to ensure that the broker chosen has complied with all relevant licensing requirements.

Selling a golf or club property is unlike selling most other types real estate, largely because it’s a combination of real estate and an operating business, and for most owners (especially the family-owned courses) it is a transaction they will only go through once. It’s critical that the broker also understand and strive to achieve the seller’s personal goals. Sometimes, it’s strictly about maximizing proceeds. Other times, sellers have objectives relating to the future of the course/club or even whether the next owner is local or known. I call that “treating the patient as well as the disease.”

The right broker brings specialized knowledge, candid advice, and a marketing plan tailored to the property and the client. Asking these questions along with knowing who exactly will be your point of contact before signing a listing agreement can make the difference between a property that lingers on the market and one that sells in a timely manner at the best achievable price.