Golf Memberships and Selling a Home
3 minute read
What is the value of a golf membership? If someone has an equity golf membership in a community, how do value it if you can transfer it to a new owner? Each course is different, but Desert Mountain in Scottsdale, Arizona, provides us with some interesting data to explore this question.
Desert Golf Memberships
Why it matters: Desert Mountain is one of the top communities in Scottsdale. For years, memberships in Desert Mountain and many other golf communities were not easy to divest. Golf interest in the US was waning until COVID-19 hit; then, the interest in golf grew rapidly. According to MSNBC, in 2020, golf popularity had the largest increase of players in 17 years. Now a Desert Mountain Membership is like gold to homeowners looking to sell their homes.
Buyers interested in Desert Mountain often want the perks that membership offers on both the golf and social scene. A home sold without the benefit of golf and/or social membership is less attractive to potential buyers looking to enjoy the community fully. Both classes of membership are currently unavailable unless they transfer with the sale of a home.
Desert Mountain allows selling homeowners to give up their membership so the new owner can join immediately instead of going on a lengthy waitlist. Still, the club’s board requires that potential members looking to buy a home with a membership apply for approval which can take up to 30 days, and acceptance is not guaranteed.
So what is a Desert Mountain membership worth when selling a home in this community? We did a deep dive into the last six months of sales data and the current listings for an answer:
In the past six months, 62 single-family homes sold in Desert Mountain, and 21 were listed with golf or social memberships that could transfer to the new owner.
The median sales price per square foot for a home with a golf membership is $705. This is 15 percent higher than homes that are sold without memberships.
A home in Desert Mountain with a membership sells 48 percent faster than one without. On average, it took 101 days for the homes without memberships to sell compared to 53 days for homes with memberships.
There are currently 31 homes on the market or under contract without memberships and 18 with memberships.
The median price for homes with memberships is $3,847,500, which is 30 percent above those that do not offer a membership.
Between the lines: If you own an equity golf membership and are looking to sell your Desert Mountain home, adding your membership as one element of the sale opens your home up to a larger buyer pool, and these homes list and sell for a higher price. Some buyers just don’t want to buy a home and join a lengthy waitlist.
The Bottom Line: A golf membership to Desert Mountain is a valuable asset when selling a home that can add value to your bottom line and help you get your home SOLD.