Thinking about buying a home in a golf community? Hold up. There's more to consider than just your swing. Here's what you need to know:
- Financial stability: Check the golf course and community finances.
- Membership options: Equity vs. non-equity, bundled vs. non-bundled.
- Living costs: HOA fees, property taxes, insurance, utilities, golf fees.
- Community features: Current amenities and future plans.
- Home location: Fairways, tee boxes, or greens - each has pros and cons.
- HOA rules: Strict regulations on property appearance, pets, parking.
- Social scene: Community events, clubhouse activities, sports programs.
- Investment potential: Past trends and future outlook for property values.
- Noise and safety: Early morning maintenance, stray golf ball risks.
- Resale ease: Selling process, membership transfer complications.
Quick Comparison:
| Factor | Pros | Cons |
|---|---|---|
| Fairway home | Great views | More stray balls |
| Equity membership | Ownership stake | Higher upfront cost |
| Bundled community | Included golf membership | Potential crowding |
| Strict HOA rules | Maintained property values | Less freedom |
Remember: Golf community living is a lifestyle choice. Do your homework, visit often, and work with a knowledgeable agent before making your decision.
1. How stable are the golf course and community finances?
Buying into a golf community? You're not just getting a house - you're investing in the whole shebang. That's why you need to know if the golf course and community are on solid financial ground.
Community Finances: What's the Deal?
First up, dig into the HOA finances:
- Get your hands on the community's budget and savings
- Ask about upcoming assessments or fee hikes
- Check if the reserve fund can handle future upkeep
Take Desert Highlands in Scottsdale, Arizona. Homeowners there shell out $1,325 monthly for HOA dues. That's not chump change, so you'll want to know where every penny goes.
Golf Course Finances: Fore or Flop?
The golf course's financial health can make or break your property value. Here's your checklist:
- Who owns it? (Community or independent business?)
- Are memberships up or down?
- Where's the money coming from?
- What's it cost to keep the greens... well, green?
Heads up: A closed golf course can tank home values. Jeff Pinckney, a part-time commercial realtor in Beaufort, S.C., puts it bluntly:
"When the Sanctuary Golf Club in Beaufort, S.C., shuttered its doors in January 2019 and went into foreclosure, homeowners in the nearby Cat Island community had reason to fear the worst."
In fact, if a golf club closes, nearby home values can nosedive by over 20% in an average economy. Yikes.
Want the inside scoop on the golf club's finances?
- Chat up the club's money guru (that's the CFO)
- Look at membership costs and what you get
- Check out any ongoing contracts with vendors or event planners
Golf clubs aren't your average business. They deal with:
- Members coming and going
- Seasonal cash flow
- Ever-rising costs to keep things running
| What to Check | Why It Matters |
|---|---|
| HOA Fees | Know what you're paying for |
| Golf Club Membership | Upfront costs and ongoing dues |
| Reserve Fund | Is there enough for a rainy day? |
| Money Makers | Where's the cash coming from? |
| Running Costs | What does it take to keep the show going? |
2. What membership options does the community offer?
Buying a home in a golf community isn't just about the house - it's about joining a club. Let's look at the main membership types:
Equity vs. non-equity memberships
Equity memberships: You're part-owner of the club.
- Higher upfront costs ($5,000 to $250,000+)
- Voting rights on club decisions
- Possible refund if you leave
Non-equity memberships: More like a subscription.
- Lower initial costs
- No ownership stake
- Usually non-refundable
Quick comparison:
| Feature | Equity | Non-Equity |
|---|---|---|
| Ownership stake | Yes | No |
| Voting rights | Yes | No |
| Initial cost | Higher | Lower |
| Refundable | Often partially | Usually not |
| Availability | 85% of private clubs | More common |
Bundled vs. non-bundled communities
Bundled: Home purchase includes club membership.
- Golf membership comes with your home
- Annual dues cover HOA and club fees
- Can be a rental property perk
Non-bundled: Home ownership and club membership are separate.
- More flexibility in membership level
- Potentially lower costs for non-golfers
But watch out for crowding in bundled communities. Robert Borges, a golf community expert, says:
"If you don't play golf, or at minimum at least enjoy being around a golf-heavy environment, living in a bundled golf community probably isn't for you."
A 1,000-home bundled community could mean 2,000 members fighting for tee times!
Real-world examples:
1. Desert Mountain (Scottsdale, Arizona):
- Members-owned (equity) community
- Six Jack Nicklaus Signature golf courses
- Homes up to $10 million
2. Leisure World (Arizona):
- More affordable option
- Two golf courses
- Homes starting in the low $100,000s
- Age-restricted (45+)
When choosing, think about:
- Your golfing frequency
- Your budget
- Whether you want a say in club decisions
- Potential resale value
Lynn Josephson, President of Golf Life Navigators, advises:
"Bottom line: conduct your due diligence, ask the right questions and, by all means, review those membership documents before signing and understand your exit strategy."
Your membership choice can make or break your golf community experience. Choose carefully!
3. What are all the costs of living in the community?
Living in a golf community isn't just about hitting the links. There's a whole bunch of costs to think about. Let's break it down:
Monthly HOA fees
HOA fees can be all over the place. Here's the scoop:
- You might pay monthly or quarterly
- Fees depend on the community's budget and number of owners
- Annual budgets? They can range from $500,000 to a whopping $10 million
Take Sun City Grand, for example:
- Condos: $236 to $345 per month
- Villas and single-family homes: $1,104 annually (about $92 per month)
Pro tip: When house hunting, ask your realtor about HOA dues. Compare them across communities you're eyeing.
Other costs to consider
1. Property taxes: In Sun City Grand, budget around $245 monthly for a 1,600 square-foot home.
2. Homeowners' insurance: About $67 monthly for the same size home.
3. Utilities: Roughly $100 per month, but your mileage may vary.
4. Golf membership fees: These can be a doozy. Check out this comparison of Scottsdale golf communities:
| Club Name | Membership Cost | Monthly Golf Dues | Other Fees |
|---|---|---|---|
| Boulders | $80,000 | $564-$736 | $271-$375 Social, $222-$286 Clubhouse |
| Desert Mountain | $200,000 | $2,242 | $2,500/year Food & Beverage |
| Whisper Rock | $130,000 | $1,283 ($15,400/year) | N/A |
5. Special assessments: One-time fees for big repairs or upgrades.
6. Food and beverage minimums: Some clubs make you spend a certain amount, like $1,500/year at Troon Country Club.
Here's a fun fact: "Bundled" golf communities often have lower upfront and annual costs. For a $300,000 multi-family home in Southwest Florida, you might see:
- Golf/Social Membership Fee: $5,500/year
- Master HOA & Condo/HOA Fees: $5,200/year
- Real Estate Taxes: $3,300/year
Total annual cost: $14,000
Insider tip: In most fancy "bundled" golf communities, renting your place for the four peak-season months can cover your entire annual expenses. In-season rent for a $300,000 multi-family home? Expect $3,500-$4,500/month.
4. Current and Future Community Features
When buying a golf community home, you need to look at what's there now and what's coming later. Let's break it down:
What's There Now?
Golf communities aren't just about golf. Here's what to look for:
- Golf courses: How many? How good? The Cliffs community has seven designer courses, each with its own clubhouse and food.
- Safety: Are there cart paths? Is the layout safe from stray balls?
- Looks: Does the course make the community look better?
- Other stuff: Pools? Outdoor kitchens? Gyms? Tennis courts? Places to eat?
- Fun stuff: Do they have wine tastings? Member tournaments?
"Most of today's courses are more related to real estate than to golf." - Robert Trent Jones Jr.
This quote shows that golf communities now focus on the whole living experience, not just golf.
What's Coming Later?
Communities often plan upgrades. Ask about:
1. New stuff: What are they adding?
2. When: When will it be done?
3. How it affects you: Will construction be a pain?
4. Money: Will you have to pay extra for these upgrades?
For example, Emerald Bay in Arizona plans to add:
| New Stuff | What It Is |
|---|---|
| Golf | 18-hole main course, 9-hole short course |
| Hotel/Spa | 200 rooms, really big |
| Beach club | With a place for tennis |
| Sports school | For teenage athletes |
But remember, plans can change. Always ask for the latest info when you visit.
5. Where is the home located on the golf course?
The location of your golf community home can make or break your experience. Here's what you need to know:
Fairways, tee boxes, or greens
Each spot has its ups and downs:
| Location | Pros | Cons |
|---|---|---|
| Fairways | Great views, watch golfers | More stray balls |
| Tee boxes | See game starts | Noisier, less private |
| Near greens | Quieter, safer | Less action |
Privacy and safety
Golf course living isn't always peaceful:
- Homes near cart paths or tee boxes get more golfer chatter.
- Houses right on the course have less privacy. Consider tall shrubs.
- Stray balls are a BIG issue. Just ask the Tenczar family in Massachusetts:
"This was so extremely upsetting to them, and they were so completely powerless to really fix the problem. The problem has to be fixed from the golf course side." - Robert Galvin, the Tenczar family's attorney
The Tenczars had to replace 26 windows and their entire home siding due to golf ball damage!
To avoid these headaches:
- Check the home's position relative to common shot directions.
- Look for homes near greens or hazards where golfers take careful shots.
- Ask about the course's liability policy for stray ball damage.
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6. What are the HOA rules?
HOA rules can make or break your golf community experience. Here's what you need to know:
Common HOA rules
Golf communities often have strict rules. Here's a snapshot:
| Rule Type | Examples |
|---|---|
| Property Appearance | Specific paint colors, grass height limits |
| Structural Changes | Approval for decks, sheds, solar panels |
| Pet Regulations | Limits on pets, leash requirements |
| Parking | Garage parking only, no street parking |
| Noise | Quiet hours, party size limits |
These aren't just suggestions. Breaking them can lead to fines or worse.
Reading HOA documents
Don't skip this! Here's what to look for:
1. CC&Rs (Covenants, Conditions, and Restrictions)
This outlines your rights and property dos and don'ts.
2. Rules and Regulations
Covers day-to-day stuff like pool hours or trash pickup.
3. Bylaws
Explains HOA operations, including board member elections.
4. Financial Records
Check the last 1-2 years. Are they managing money well?
5. Meeting Minutes
Can reveal ongoing issues or upcoming changes.
Ask your real estate agent for these documents BEFORE you buy. It can save you from surprises later.
"HOA rules and regulations are legally binding. Because homeowners are asked to read and sign a document, they claim responsibility for upholding those rules upon signing." - WildApricot
Here's the kicker: HOAs can foreclose on your home if you don't pay dues or fines. So take these rules seriously!
7. What is the community like socially?
Buying a home in a golf community isn't just about the greens—it's about the people. Let's look at the social scene:
Community atmosphere
Golf communities are social hubs. Here's what to check out:
- Is the clubhouse buzzing or quiet? This sets the tone.
- Look at the event calendar. Are there regular mixers and tournaments?
- What activities are there beyond golf? Think fitness classes or book clubs.
Take Seven Canyons in Arizona. They've got:
- Social mixers
- Golf events on their Tom Weiskopf course
- Fitness classes
- Special interest clubs
Getting involved
Want to plug in? Here's how:
1. Join club competitions
Great for meeting people. Look for randomly drawn competitions—they're easier for newbies.
2. Hit up "roll-ups"
These are informal gatherings. Perfect for casual meet-and-greets.
3. Hang out at the clubhouse
It's where the action is. The Club at Mediterra's 60,000 square-foot clubhouse has:
| Feature | What you get |
|---|---|
| Dining | Indoor, outdoor, formal, casual |
| Food | Classic dishes and healthy options |
| Social spaces | Areas for mingling and events |
4. Try the sports programs
Mediterra's Sports Club offers 30+ weekly classes for nearly 300 members.
5. Go to community events
Lancaster Country Club, for example, throws:
- An Independence Day bash
- A Halloween carnival for kids
- A Christmas party
- A New Year's Eve party
- A summer soirée
"We love the strong sense of community at Terravita. The golf course is beautiful and challenging, and the club amenities are top-notch. We're thrilled with our decision to join." - Russ & Kathy F.
Pro tip: Ask current residents about their social experiences. Their insights can be gold when making your decision.
8. Is the property a good long-term investment?
Buying a golf community home isn't just about finding a great place to live. It's also about making a smart investment. Let's look at what drives property values in these communities:
Past trends and future outlook
Golf course homes have historically been solid investments. They typically sell for 2-3 times more than average homes, with lot values often carrying a 40% premium. During economic downturns, they tend to stabilize faster than non-golf homes.
But not all golf communities are created equal. The key? Quality - both of the home and the neighborhood.
Several factors can impact your golf community home's future value:
1. Golf course quality and popularity
A well-maintained, popular course can boost property values. Unobstructed course views can add a 5-12% premium.
2. Community finances
"Conduct a financial wellness check on the golf club to ensure it is a sound and stable operation before buying a golf course home." - Sara Killeen, Longitudes Group
A financially stable community is crucial. If a golf course closes, it can hurt property values.
3. Location and amenities
Golf communities near great restaurants and shops often see higher property values.
4. Market trends
The golf industry is seeing a resurgence. In 2023, 26.6 million people played golf, with 6 million new or returning players. Young adults (18-34) make up a large portion of today's golfers. This increased interest could drive up demand for golf community homes.
5. Economic factors
Keep an eye on interest rates, the local job market, and overall economic health. These can all affect your home's future value.
9. Noise and Golf Ball Risks in Golf Communities
Living in a golf community isn't always a hole-in-one. Let's look at two big issues: noise and flying golf balls.
Early Birds and Loud Machines
Golf courses need constant care, and it starts when most people are still in bed.
- Lawn crews often fire up at 6:00 AM
- Mowers can hang around one spot for 20+ minutes
- Green fans can be as loud as freeway traffic (70 decibels)
"This seems like a very strong indicator of mischievous intent." - Bob Butler, Resident
Butler's not alone. Many residents lose sleep over noisy maintenance.
What can you do? Ask about maintenance schedules before buying, pick a home away from busy areas, and maybe soundproof your bedroom.
When Golf Balls Go Rogue
Those little white balls can cause big problems:
| Risk Factor | Details |
|---|---|
| Injuries | 131,000+ golf-related injuries treated yearly |
| Property Damage | One case: 250 golf balls = $4,000 in damages |
| Liability | Often, it's on you, not the golfers or course |
"By choosing to live on a golf course, you are accepting the risk that comes with that." - Gary M. Singer, Florida attorney and real estate expert
To stay safe:
- Look for homes near greens, sand traps, or water hazards
- Check your insurance for golf ball damage coverage
- Think about extra protection like netting or tougher windows
Living on a golf course can be great, but it's not all quiet greens and perfect views. Know what you're getting into before you buy.
10. How easy is it to sell the home later?
Selling a golf community home isn't always straightforward. Here's what you need to know:
Selling your golf home
Golf homes often fetch higher prices than regular houses - typically 3-4 times more. But pricing is crucial. Overprice it, and you'll struggle to sell.
Homes with golf memberships sell faster and for more:
| With Membership | Without Membership |
|---|---|
| $3,847,500 median price | $2,959,615 median price |
| 53 days on market | 101 days on market |
| $705 per sq ft | $613 per sq ft |
To sell quickly:
- Price it right
- Highlight perks (especially memberships)
- Stage it well
- Prepare all documents
- Consider a pre-sale inspection
Club membership complications
This is where things get tricky:
- Some clubs allow membership transfers to new owners
- Equity members might sell memberships separately
- Community rules vary (e.g., Desert Mountain lets sellers give up memberships for new owners)
- Buyers often need membership approval (can take 30 days, not guaranteed)
Remember: Golf memberships aren't real property rights. They don't have deeds or parcel numbers. But they can hugely impact your home's value and sale speed.
"Bottom line: conduct your due diligence, ask the right questions and, by all means, review those membership documents before signing and understand your exit strategy."
Selling a golf community home can be complex. Understand the rules before you play the game.
Conclusion
Buying a golf community home isn't just about the house - it's a lifestyle choice. Here's what to keep in mind:
- Check both community and golf course finances
- Understand membership options and costs
- Consider location impacts: noise, privacy, safety
- Read HOA rules carefully
- Ensure the community vibe fits you
- Look at long-term value and resale potential
Do your homework. Visit often, chat with residents, and work with an agent who knows golf communities.
"People value the privacy and security of living in a golf community." - Julian Walker, Spot Blue International Property
This explains why golf homes are hot. Demand jumped 18% in just six months in 2020.
But don't rush. Take your time and make sure it's right for you.
