In the wake of the recession, some private golf clubs are hanging on by a thread, quietly desperate for new members but unwilling –- or unable –- to initiate programs to attract them. Generally, private clubs don’t go out of business; they go public. The National Golf Foundation reports that since the recession began in 2008, 78 private clubs closed their doors but 400 opened those doors slightly or fully to outside play. For many members who joined a club for its exclusivity, though, going public is a fate worse than death of the club, literally.                

         Since the recession began, many private clubs have dropped or eliminated altogether their initiation fees, an act of desperation that is typically confined either to clubs already in a death spiral or those in highly competitive areas in which the other clubs are dropping or eliminating joining fees. Those clubs that have a bit more flexibility employ more creative approaches, the most popular among them the “trial” membership.

         The Virginia golf community known as Viniterra, located in New Kent, midway between Richmond and Williamsburg, has run a successful trial membership campaign since 2008. It offers a one-year membership for just $1,800, with no additional payment of dues or any other fees except for golf cart rental when you play.

Viniterra converted to full membership 80% of those who signed up for a one-year trial membership.

By the month, that amounts to just $150, which are the dues Viniterra members have paid since 2008. At the end of the trial year, according to Viniterra Director of Marketing & Sales Holly Stephens, the potential member can “pay the initiation fee ($5,000) or walk away.” To date, says Stephens, 80% of trial participants have converted to full memberships. That seems to vindicate the trial membership as a low-risk marketing effort for both the trial member and the club itself.

         Viniterra was slated to be a private golf club but the recession and its effect on lot sales there forced the club into semi-privacy. The Rees Jones designed course, which passes by some of the on-site vineyards that give the community its name and supply some of the grapes for the on-site working winery, is an interesting, rolling layout and was in fine shape when I played it a couple of years ago. You can read my original review of the golf community and golf course by clicking here. Homes in Viniterra begin in the $500s; check out a few of their listings at GolfHomesListed.com.

Viniterra9approachThe approach to the par 5 9th at Viniterra

 

         When home prices drop in a town surrounded by other areas where prices have risen, sometimes dramatically, the natural inclination is to think something has gone awry in that town (taxes have risen sharply, a chemical spill, an ordinance to permit unlimited strip joints). But, try as we might, sometimes there is no discernible reason for the price drop; or, if there is a reason, it does not rise to the point that an otherwise interested purchaser should be deterred. On the contrary, those price drops may indicate a short-term buying opportunity for savvy buyers.

         Consider the area immediately north of Myrtle Beach, SC, not surprisingly named North Myrtle Beach. Buddy golfers and families looking for a combined golf and beach vacation will be familiar with the golf community/resorts in the area, chief among them Barefoot Resort (four excellent golf courses) and, just below the town’s border, Grande Dunes, with two excellent courses, one private and one public). According to an article by Steve Jones, the real estate columnist for the Myrtle Beach Sun News, the median price of homes sold in North Myrtle Beach from January 2013 to January 2014 dropped 16%. A few miles south, the Myrtle Beach market enjoyed a 58% price increase for single-family homes; farther south, in the Georgetown area, which comprises the upscale community of DeBordieu Colony and its Pete Dye golf course, prices rose a robust 82%.

BarefootLoveruinsThe Davis Love designed course at Barefoot Resort in North Myrtle Beach, SC, is one of four on site. Note the faux ruins behind the 4th green, a touch of Love here and at Grand Harbor near Greenwood, SC.

North Myrtle Beach’s price drop wasn’t at all a function of an inactive market; in fact, home sales rose in town by nearly 42% year over year. Although you can find a wide selection of properties in North Myrtle Beach priced under $100,000, the town’s average listing price over the last two years is the second highest in South Carolina, according to Steve Jones, at $372,000. A local broker told Jones that his firm had seen a large number of referrals from the web sites Zillow and Trulia, and those were generally at prices well under the median. That certainly could have depressed the one-year average of prices in North Myrtle Beach.