It may seem like a dream view. Look out your window and you see lush, green grass. The best part? You do not need to take care of that grass. Owning a property near a golf course can come with pros and cons. One of the most obvious benefits, as mentioned above, is the ability to enjoy the scenery that comes with a golf course. Property owners are now experiencing the biggest potential con: a defunct golf course.
What went wrong?
Golf is not the popular sport it once was. A recent piece in the Wall Street Journal reports over 200 golf courses closed throughout the country in 2017. Unfortunately, that number is not expected to get better. Experts predict that the number of closures could double this year.
How does a failed golf course impact neighboring homes?
The closure of a golf course directly impacts the property value of surrounding homes. On average, the closure translates to a 25% drop in the home’s value.
In addition to the drop-in home value, the potential for legal issues can also increase if the home is a part of the golf community. One example involves required membership. It is not uncommon for properties within a golf community to require home owners have a membership to the golf club. It may be difficult for home owners to get out of the required membership payments if the golf course fails. This can lead to legal disputes between the golf club and the home owners.
The required membership can also make it difficult to resell the property in the future.
What does this mean for home buyers?
Those looking to purchase property do not need to avoid golf communities or properties that surround a golf course. However, home buyers looking at a property in or near a golf course are wise to carefully review the real estate documents to mitigate the risk of surprises like required golf membership fees.