Golf Course Buyers and Sellers Reach Reality on Pricing
It has always been difficult for golf course brokers to secure an understanding from golf course owners on the true value or appropriate selling price for their facility and on the reverse side; buyers have been unable to determine a realistic offering price. As the saying goes, the times they are a changing!
There are more and more distressed properties on the market. In most cases, net operating income is disappointing to say the least. With institutional financing no longer available, different approaches must be considered by both seller and buyer to structure a transaction.
Many sellers are now willing to offer seller financing when the buyer can offer a significant down payment and/or sellers are giving strong favorable consideration to all cash transactions.
In just the past months, several golf courses in good locations with good potential for positive cash flow have been sold for as little as $750,000 or 1.5 to 2 times gross revenues. In some cases, seller financing has been made available. Similar attractive properties are now available as are some good courses that are currently closed due to slow residential lot sales in the planned development.
If you are a seller, we can help you structure a price and deal that will attract potential buyers. If you are interested in buying a golf course, now is the time to investigate the market. We can help. Give Golf Course Advisors a call at 904-571-4375.
