Ready to sell your golf course?
We share how to prepare your golf asset to ensure a smooth sale and so you receive top-dollar. From addressing potential buyer concerns to understanding market demands, following these steps will ensure your property is exit-ready in 120 days.
Assess & Resolve Potential Buyer Concerns
Before putting your golf course on the market, give your property a thorough review to identify potential issues (and opportunities) that may arise for buyers. Areas you’ll want to focus on include:
- Pricing and daily fees: Are your prices competitive and driving consistent revenue?
- Daily operations: How up-to-date is the booking system? Does your staff have enough support to run things smoothly for guests?
- Clubhouse and additional amenities, including restaurant, spas, and pro shop: Which areas are underperforming? Are there areas to improve, or cut costs?
- Fairways and driving range: What is the condition and playability of the course and range? What updates can be made prior to listing the asset?
- Member experience: Are members happy? Are you drawing in new demographics entering the golf space?
Addressing any issues that crop up during this assessment process is essential before putting your property on the market. Buyers want to ensure a smooth transition and assurance that your golf course is a solid investment and will continue to thrive and grow once they take ownership.
Understand Market Trends & Buyer Demands
Understanding the current trends and market demands in the golf sector will help maximize the price and sale of your golf asset.
Over the past decade, the golf industry has undergone a transformation, rolling out innovative initiatives designed to welcome new audiences to the game, including younger players, first-time golfers, women, and minorities.
Players under 50 now make up 71% of golfers with 18 to 34-year-olds making up the largest segment with nearly 6.3 million players.
Gamification of the sport, implementing technology, and making the sport more accessible and sociable by introducing non-golf-focused amenities and theme nights like “Sip & Swing” are all trends you don’t want to ignore.
A study conducted by KRC Research revealed that “61% of golfers would play more if their smartphone had an app that keeps score, 63% of non-golfers are more likely to play with the help of smartphones, and 86% would benefit from technology that could track distances.”
Meeting these market demands and incorporating these trends increases the appeal of your asset to buyers, and the improvements may be relatively easy to implement.
Integrate Technology for Competitive Edge
If your course doesn’t currently implement smart technology on the course and on the range, consider making this change to increase your property’s value to both customers and potential buyers.
Targets on the driving range and smart sensors to track swing and trajectory like Arccos smart sensors, which tracks your swing, yardage, and offers in-real time personal A.I. caddie advice to adjust your strategy, are current trends that golfers love to see on the course.
Another example, SmartPin, a flagstick with a 360 broadcast-quality camera, brings more excitement and fun to the game, capturing a golfer’s play from the tee to the pin and delivering stats and video directly to a player’s smartphone via their app.
Adding these features not only helps grow your clientele and reach a wider audience but also allows you to price your asset more effectively and competitively in the current market.
Balance Tradition with Innovation
Showing buyers your course can appeal to both the traditional golfer and new golfer will add greater appeal and value to your property.
Creating putting challenges or offering app-based golf games like SmartPin are inexpensive and effective ways to draw in new golfers without alienating the more traditional clientele. This balance enhances the property’s versatility and attractiveness to buyers.
Environmental Awareness
Sustainable strategies reduce operational costs while appealing to environmentally-conscious buyers. Consider smart irrigation systems, water recycling, solar-powered equipment, and low-maintenance landscaping.
Implementing these practices highlights a property that is not only profitable but also future-proof.
Upgrade Amenities to Boost Revenue Potential
Diversifying and enhancing amenities strengthens both the guest experience and the property’s market value.
Modernizing the clubhouse, introducing spa services, elevating the restaurant and bar, adding firepits and patio areas, and optimizing spaces for events and weddings during slower golf months are all strategies that differentiate your property and can significantly increase buyer interest and overall value.
Compile Clear Financial Records
Buyers want transparency. Providing a clear picture of the property’s profitability and potential growth areas will help buyers evaluate and understand the property’s financial health, understand the financial obligations, and identify where there’s room for added growth and value.
Profit & Loss Statements
Buyers and lenders typically like to review the past 3–5 years of historical profit and loss statements. In addition, buyers will want to understand what the advanced deposits look like, along with gift card liabilities, and membership contracts.
Inventory All Assets
Inventory all assets associated with the property, including the course, driving range, clubhouse, restaurant, and bar, as well as the liquor license, event spaces, maintenance facilities, carts, and equipment. Include whether your management team and staff will be staying on, as this provides added value to a smooth transition and maintains a quality guest experience.
Successfully selling your golf asset is all about positioning your property for maximum appeal and value. By taking the time to address potential concerns, modernize amenities, understand current trends, and present clear financials, you’ll give buyers every reason to see your course as a smart investment.
Obtain a Broker Opinion of Value
A professionally prepared broker opinion of value (“BOV”) ensures your asking price aligns with the asset’s fair market value.
This helps you determine an asking price and avoid overpricing or underpricing your course. Analyzing the historical performance of comparable properties will not only give you an idea of the market and price points but also help you pinpoint any features and amenities that can make your property stand out in order to justify a premium price.
At SVN | Northco, we’ve worked on over 500 golf and resort assets across the country. Our process ensures your course is positioned to attract the widest pool of qualified buyers.
Share This Article
