I’ve had the luxury of assisting countless sellers in the disposal of a range of golf and club properties throughout my many years as a consultant, appraiser, and broker in the golf course market. With each new circumstance bringing a new problem, we’ve discovered several options to explore when you are considering to put a golf courses for sale.
To choose the best alternative for our clients, I first learn about their goals and ambitions. Of course, all sellers seek to maximize their price; however, some criteria may take precedence over others, such as:
- Retirement Strategy.
- Immediate capital requirements.
- Closing for the season.
- Financial difficulty.
- Considerations for the market.
A seller has various alternatives for selling or negotiating a sale for a golf facility. A listing can be made through a specialty broker (such as us), a commercial broker, or a local broker. Some vendors promote themselves, while others prefer the auction method. They have its own set of pros and downsides.
Those concerned about taxes may wish to explore an installment sale, which involves retaining a note from the buyer for a length of time. Others (the majority) need a cash-at-closing deal. Some sellers, particularly those who desire a quick sale and want to promote competition, use the auction approach. Others, who perceive auctions as a sign of weakness and have the luxury of time, choose more traditional ways of marketing, which often involve listing with a broker and utilizing the broker’s network and marketing talents.
Timing is always a crucial aspect of any transaction, given the seasonal nature of most golf businesses, the significant amount of due research required on the buyer’s behalf, and maybe most significantly, the objectives of buyer and seller. In most brokerage circumstances, we recommend formulating an exit plan that considers the intended date of the sale and the time necessary to prepare, advertise and conclude an acceptable transaction. Of course, price expectations always influence such time, which should be realistically defined.
Pricing is sometimes the most crucial factor for the vendor. Their equity in the home often symbolizes their life savings or profit from a long-term business enterprise. Every vendor wants to get the best price possible. Overpricing a house for sale can be a “double-edged sword,” as it can deter some legitimate purchasers from ever considering the offer. Sure, some “wiggle room” is desirable, but realistic pricing is essential.
It is common for golf properties to take a year or more to prepare, advertise, and close a sale transaction. That is correct. It may also be completed in significantly less time. Pricing and marketing approaches have a significant influence on timeliness.
Some transactions need ingenuity. If bank finance is not available, other options may be required. Buyers and sellers use a variety of strategies to execute a transaction, including installment sales, private equity, and participation.
Every seller’s scenario is unique. To reach their aims and objectives, they must frequently explore several innovative means of marketing and preparing the property for sale and the potential of collaborating with a rival to do what is best for the client. Sometimes collaborating with an expert from a different field might provide the most bang for the buck for the customer (i.e., broker and auctioneer).
The results will be obtained by developing a plan that considers the property’s individual strengths and limitations and the current market dynamics. When these are combined with the seller’s aims and objectives, it results in a well-rounded strategy.
In two recent transactions in which we had the honor of participating, we urged sellers to consider possibilities different from how they had envisioned the sale but resulted in good results. On one of those occasions, we collaborated with an auctioneer (and divided our fee) to secure the greatest possible outcome for the seller.