High Demand for Residential Real Estate in Golf Communities
Are you capturing this niche market of buyers and sellers?
By: Jason Becker, PGA of America
By: Jason Becker, PGA of America
Not that the “Silver Tsunami” didn’t exist before Covid-19, but it surely is evident that an even larger migration is occurring by northern baby boomers heading south.
At Golf Life Navigators, an online marketplace for consumers to filter, search, and connect with private clubs and real estate agents, we have seen website user activity increase 5X the past 6 months. Consumer demand is at an all-time high for golf clubs and communities, not only in the Sunbelt, but also across the entire United States.
Check out these stats.
In early 2020, approximately 59% of golf buyers said they intend to combine the search of golf membership and home. Today, 73% of the golf buyers feel the same way, a 14% shift in just over 12 months.
The demand for a home in a gated golf community has increased to 58% of the golf buyer marketplace in 2021 – a 10% shift in favor of purchasing a home in a golf community compared to 2020 buyer data.
Why the strong shift in demand? “We desire safety, security and being in a controlled environment.” Consumers say this demand has taken over their hierarchy of importance. The golf course itself is falling outside of the top three motivating factors to buy in a golf community for consumers in 2021.
These trends are great for golf clubs looking for new members and real estate agents looking for increased market-share within their local club communities!
So how big is the golf real estate market?
Each year, real estate sales volume in gated golf communities reach 40 billion-dollars in buyer/seller activity. Yes, the golf market may be small in size compared to entire transactional universe, but it is a very niche market with thousands of buyers and sellers each year.
Consider this. The average private club has an annual attrition rate between 5-10%. That means if there are 400 members, the club will most likely lose 20-30 members (a year) due to a number of varying reasons. In a golf-rich market like Scottsdale, you will most likely see a cycle of golf community real estate sales reach 5,000 transactions (or more) a year.
Who has the lion share of all of these golf buyers and sellers? Quite frankly, no-one has the lion’s share. Most markets will have a few established brokerages who own 8-12% market-share. As a “Golf Centric” agent, it’s truly an untapped opportunity of which you can take advantage.
Are you asking yourself?
NO, you’re not out of luck and YES there is a program to specialize in golf!
At Golf Life Navigators, we engineered a unique online certification program for real estate agents who would like to do more business in golf communities. The data and content we gathered from 400-plus agents (over a five-year period) has been transferred to a virtual platform so agents around the world can become “Golf Certified.”
If you have always wanted to do more business in golf communities, I highly recommend taking the video-based course. You will learn everything you need to know how private clubs work, golf terminology, communicating with the membership director, etc.
It’s basically Golf 101 for real estate agents.
Take a look around your local market. Are there three or more golf clubs and/or communities? If so, you might be able to carve out a niche as the local “golf expert” and someone who can help both golf buyers and golf sellers.
There are no homes on the golf courses near me. That is certainly a possibility but members have to live somewhere, right?
Remember, 42% of the buyers-market plan to live outside the gates of a community and be a non-resident member. These buyers will still need a golf-centric agent who can speak intelligently about the different club membership programs as they look for a home off campus.
If you wish to travel this unique path, feel free to click the link below. I promise you will be pleased with the content and confident in your new direction as a Golf Life Navigators Certified Real Estate Agent.
Hit em’ straight,
Did you know, the annual transactional volume of real estate sales in Sunbelt golf communities exceed 35 Billion-dollars a year? Buyers are seeking a real estate agent that is educated in private club dynamics and can articulate the general differences of the clubs in their local marketplace.
Are you one of these agents? Or, would you like to be?