I have been asking the same question of developers in the southeast over the last couple of months: Are you lowering prices? The answer is typically "Yes," but with an explanation.
Many golf communities, to spur sales, had been offering "free" golf membership with the purchase of a lot or home. In some cases, the value of the membership was $25,000 or more. But now, some developers are taking the free membership off the table. Or are they?
In the current environment, developers are caught between a rock and a hard place. Market forces compel them to lower prices, but their current property owners don't take kindly to the lower prices. It depreciates the market values of their properties. To solve the dilemma and assuage their current property owners' angst, developers have lowered prices but have taken away the complimentary initiation fees. In that way, they can explain to their property owners that the overall value of their holdings -- property and golf membership -- has not really eroded.
But in the current environment, developers are desperate, and no matter what they are telling their property owners, any potential purchaser with the resources to buy today has all the chips on his side of the table. In short, if you are in that fortunate group, do not be afraid to ask for the golf fees and other goodies. Most developers faced with a choice between a sale or a ticked off resident will opt for the sale.
If you want further thoughts on the subject, or would like me to help you prepare to negotiate the best possible deal in a golf community, contact me by clicking on the button at the top of the page.
