Bundled and Equity Golf & Country Club Real Estate
Unlike most real estate agents I have enjoyed the unique experience of being and early adopter and early adapter of technology, social media and internet related marketing. Occasionally, I’ve been consulted by a few businesses, including country club golf course communities, about getting the word out to the public that they were healthy and financially stable, as well as, communities that needed help cleaning up their reputation online and with the public.
The economy has been rough on some of the country club communities and they’ve had to champion their way out of financial stresses, developer abandonment or bankruptcy and prove they’re healthy even when they don’t have issues because the real estate buying public is worried about buying into someone else’s problems.
The owners and members of the communities are reaching out for help and doing their best to bring in real estate agents and share their renovations, updates and financial stability records. I’ve attended a few of these sorts of events.
Today I was present at a meeting where the director explained that out of the eight hundred front doors (homes and condos) that there were only forty-four listings on the market, four active with contingencies and one pending sale. He boasted an only 6% list rate. Out of curiosity I double checked those figures in the MLS and he was right. Even though there aren’t many home and condos pending sale, there is a low list rate.
What this fella didn’t realize is that by using the same figures an absorption rate for the community could be calculated to help all of those eight hundred home owners fully understand that if they’re trying to sell their real estate, right now, today, the estimated time frame to sell is fourteen months. (Six months is considered a balanced market, so that’s a heavy buyers market.)
Now, doesn’t that change the perspective of being a home seller in that community? I thought so, too.
The absorption rate calculation is a great tool that both buyers and sellers of real estate need to use. Until today, I didn’t realize that country clubs and bundled golf course communities should be using it, too, so that they fully understand exactly how long current home sellers could be waiting for a buyer to walk thru the door.
This is especially important for distressed home sellers who are not making the home owner association payment. The balance of the home owners are often left to pick up the slack.
Those association or country club managers may want to fully understand how long they’re going to have to pick up someone else’s slack.