Most potential homebuyers are aware of the financial challenges facing many golf and country clubs everywhere, and especially in Florida. As Coldwell Banker Realtors, the Boeglin Team is obligated to provide prospective home buyers with a written disclosure before showing them homes in a golf course community. We suspect that other reputable brokers require similar disclosures.
If the buyers haven’t read about the diminishing memberships, reduced services, and cut-throat competition among clubs for available golfers, then their Realtors have advised them of the precarious situation in which many non-bundled clubs find themselves.
So, what happens to home values when the future of the neighborhood golf and country club is hanging in the balance? Many buyers want the expansive golf course views, whether or not they are golfers, or intend to join the club. “Not knowing” what may happen to the neighborhood is a clear negative.
As a practical matter, we think it is likely that most of the troubled clubs will weather this storm, perhaps surviving in another form. We expect that most expansive golf course views will remain. The future form may change from private club to semi-private, or open to the public. Some clubs may cut back from 27 or 36 holes of golf to a basic 18-hole golf course. Food and beverage services may suffer or be eliminated all together.
What is the solution? In our opinion, the longer the “limbo period” prevails, the greater the damage to home values. Failing to face difficult decisions simply prolongs the agony. The real estate market—like the stock market—can handle good news and bad news. It does not deal well with continued uncertainty.