Purchasing a private club membership, especially in a new geographical area which likely comes with a significant real estate investment, is a huge decision and should not be rushed into. It’s also a deeply personal decision, and requires buyers to understand what is most important to them and where those values align with each club they consider.
There are no right or wrong answers to any of these questions. But the answers to the questions below will help buyers make the most informed decision based on what is most important to each individual.
#1 What is the structure of the club?
There are several factors to consider here and each has pros and cons that you should weigh. First, bundled vs. non-bundled is probably the most important structure to consider. The answer to this will also help understand the current and maximum size of the membership, which you should be aware of, especially if playing golf several days per week is important to you. Beyond that, you should learn whether the members own the club or is it owned by a developer or company? Is there a management company involved or is it run by a Board of Directors comprised of and voted on by the members? An example of a difference between the two scenarios is that in a member-owned and managed club you will likely have more input in the future of your club, particularly in terms of renovations, projects and corresponding assessments while in a developer-owned and managed club, the decisions are typically made by, and therefore also subsidized by, the developer.
#2 What has the club done in the last few years, and what is it considering doing, in terms of renovations and enhancements?
You want to know that you are investing in a club that is willing to reinvest in itself. The club landscape is constantly evolving, and you will want to make sure you are joining a club that is committed to keeping up with the club trends and desires of both existing as well as new members to ensure that it remains competitive and sustainable long into the future. Of course, renovations and enhancements come with a price tag, and you should ask about the history of assessments (if any) and how the club intends on paying for future projects, whether it be through member assessments, capital reserves, developer/owner funds, etc.
#3 How will I get involved and meet people?
Once you have ironed out the more quantitative details, it is as important, if not more so, to be sure you’ve found a club that is a good fit for you personally. In my experience, every club has a unique personality and culture. You can line up amenities side-by-side to compare, but you also need to be sure that the club members match up to your own lifestyle and interests. First, inquire about the demographics of the club. What is the average age? If you’re looking at a retirement/destination club in Florida for example, do the majority of the members come from the Northeast, the Mid-West, etc.? Every club you are considering is likely to have a fantastic golf course, but how do new members get involved and find groups to play with? The members at your new club will absolutely make or break your experience so you need to know that (1) you’ll find people with similar interests and (2) you’ll be able to easily integrate yourself with those people to form genuine bonds and lasting friendships. Be sure to ask if you can experience the club with another member. The membership director can tell you all the best things about the club but playing a round of golf with another member will give you a much stronger feeling as to whether or not you can picture yourself as part of that environment.
#4 What is my exit strategy?
You might not be inclined to think about this when you’re excited about joining a club and starting a new adventure, but the reality is at some point you may find that you are not able to play golf anymore, or maybe you want to move to another part of the state or back up north. It’s crucial to know what your obligations are before you are in that situation. Every club is very different, and you should ask very specifically, “If and when I’m ready to resign my membership, what do I need to do?” Some clubs will require you to sell your home within the community to discontinue your membership. Some clubs require a certain number of new memberships to be sold for each membership that wants to resign. Other clubs will allow you to finish out the calendar year and then walk away after giving notice. With each scenario, you should also know whether or not you are eligible to receive a refund on your initial deposit. Again, each club’s policy will be different, and you’ll find clubs that offer everything from 100% refundable, to partially refundable, to non-refundable, each coming with a different set of terms.
#5 Why should I choose this club over another club?
Depending on when you ask this question, it might give you the most insightful information. I would recommend asking later in the process so the membership director has a chance to learn about your personality and interests. Ideally by then you should have done your initial research on the basics (locations, amenities, price, etc.) and narrowed it down to approximately two to five clubs. The membership director should be able to easily answer this question based on your individual interests and why that club meets your needs the best. In addition, he or she should be well educated on what’s available at the other area clubs you are also likely to be considering. In some cases, the membership director may realize that one of those other clubs would fit your needs and interests better, and that’s ok too. As stated above, not every club is right for every person. Most membership directors in that position would rather you find a good fit for you long term than sell you on their club if they believe it isn’t a good fit.
Ask me the questions!
As you can see, by asking the right questions you will learn a great deal about the club and its culture. After all, it is one of the biggest financial decisions you will ever make. So, be sure to interview the club thoroughly before getting serious about an investment.
If you’re ready to learn more about Shadow Wood Country Club, reach out to me today to ask me these questions!
Danita Osborn, Director of Membership & Marketing
239-992-6000 or
[email protected]
