I recently began working on a full gut rehab project in an mandatory equity membership community in South Florida. I already know that this house is going to sit on the market for a decent amount of time, but was wondering if anyone had any advice to give when listing a home in a mandatory club membership neighborhood. I'm looking for a creative tactic in order to get the home sold quickly. The home, when completed, will be an updated & modern home among some updated but many outdated homes.
We bought the property for a good price, so fortunately we're able to afford to pay for the disgustingly expensive 'builder program' while we renovate, and we will even be able to pay for it while the house is on the market for a little while, but after too long it will eat too much of our profits. So I need to find a creative way of combatting this issue.
How do Boca Raton Realtors deal with these memberships? Houses sell in these types of neighborhoods all the time in Boca, but then there are others that sit on the market for forever until they are forced to reduce their sale price astronomically. How do I avoid falling victim to this?
If anyone has any ideas, or potential or creative solutions, I would love to hear them! Maybe your comment will spark some sort of idea that could solve my problem even if you know that your idea won't work.
Hi @William Isaacs ,
First off, I’d like to say it was very brave of you to take on a full gut rehab in a mandatory equity membership community. It’s a huge risk based on the competition. I’ve looked at them in the past and couldn’t bring myself to buy in based on the holding costs and difficulty in selling them.
Most of the listings I’ve seen are way below market value vs a comparable in a non-equity community. Personally I think they’ve lost their luster and attractiveness as I don’t think younger buyers care much for the club portion. Especially since in addition to the equity buy-in, you also have to cover monthly membership fees and typically a minimum food purchase.
If it were me, I’d look for buyers that are interested in golf and market exclusively to them. I’d start looking in New York and possibly Internationally such as Canada, Japan and China.
Also, do your homework (although hopefully you did before purchasing) and compare how the club rates against non-community clubs for both golf and social. Hopefully your community rates well and isn’t falling behind in maintenance and offerings.
Good luck and please keep me posted. I’m very interested in how this works out for you!
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