Comparing Southwest Florida Golf Communities

When Southwest Florida runs tourism ads in cold weather markets, the primary emphasis of the advertising always seems to be on our natural attractions…ie unlimited sunshine, the sparkling Gulf of Mexico, and pristine beaches. However, a very strong argument can be made that the allure of our 150+ golf communities brings in just as many seasonal visitors as those other attractions. Naples and Southwest Florida is a destination for avid golfers, both renters and owners. And, if you add up the year-around total revenue contribution of these amenity-driven golf communities, it’s obvious that they play an extremely vital role in the economic success of Southwest Florida.

For the past 13-years, I’ve had the good fortune to specialize in real estate sales in these incredible golf communities. My Buyers have predominantly been from the midwest and northeast United States, Florida, and Canada. After doing a lot of online due diligence, these folks all came to town with many questions, and often much confusion, regarding how to satisfy their individual needs, wants, and preferences.  It has been truly gratifying for me to be able to help each of my customers find the golf home/golf community that best fit their personal budget, golfing habits and ability, and family lifestyle.

Whether I’m doing the search with you, or you’re doing it on your own, it should always start with the premise that all golf communities are not created equal.  The key features of each community need to be evaluated in order to find the community with which you’re most compatible and comfortable.

Here are the key points that I’d suggest focusing on…

• Community History—who is/was the developer; what’s its age; what is its financial condition; how progressive is it?
• Community Size—how many homes does it have?
• Location—is it close to beaches; close to 5th Ave. (for Naples’ homes); close to shopping and dining?
• Golf Course—who designed it; how “player friendly” is it…for both men and women; how hard is it to get on in peak season (ie January-April)?
• Membership Programs—what memberships are available; what do they include; are they optional or mandatory; how much do they cost…upfront initiation fee, and annual fee; are there any new member “incentives” available?
• Clubhouse—is it big enough to accommodate the size of the community; does it need updating; sizes of key areas… casual and formal dining; pro shop; etc.?
• Amenities & Activities—do they have a full array of amenities; what ones don’t they have; are they big enough for the size of the community; what is their plan to add the missing amenities?
• Housing Sales History—how many homes have sold in the past year; how many are currently for sale…and how long have they been on the market?

Quite often, the most important consideration in evaluating golf communities is whether they have the type of home that works best for you?  In order to determine which type of Southwest Florida golf home best fits your needs and budget, please review the following list (from most economical to highest price)…

• Condominiums—most of these consist of 12-30 units on 2-4 floors, and have carports. These are the most economical home type within a golf community…in terms of both purchase price and annual costs. Elevators are standard with 3-or-more-floors. Building insurance and maintenance of the exterior of the building are covered by condo association fees.
• Verandas—two story buildings with 4-6 units on each floor. They feature front and back lanais, detached 1-car garages, and no elevators. Building insurance and maintenance of the exterior of the building are covered by condo association fees.
• Carriage Homes—two story buildings with 4-6 units on each floor. They feature attached 1-car garages, and no elevators. Building insurance and maintenance of the exterior of the building are covered by condo association fees.
• Coach Homes—two story buildings with 2-units up and 2-units down. Every unit is an end unit, and upstairs units often feature an extra bedroom and/or bathroom over the garage. They have attached 2-car garages, and some have personal elevators. Building insurance and maintenance of the exterior of the building are covered by condo association fees.
• Attached Villas—two-or-more single family homes attached to each other. A desirable feature is that no one lives above you. They feature attached 1-2 car garages, and some have their own pools. The owner is responsible for homeowner’s insurance and exterior building maintenance.
• Detached Villas—smaller single family homes, typically between 1,500-2,700sf. Most have attached 2-car garages and personal pools. The owner is responsible for homeowner’s insurance and exterior building maintenance.
• Estate Homes—the largest single family homes in a community. Square footage varies greatly by community, but typically is over-3,000sf. The owner is responsible for homeowner’s insurance and exterior building maintenance.

Obviously, getting answers to all of the above questions and considerations is a time-consuming process. However, in the long-run, it will save you time and money…and will ensure that you find the right golf home/golf community for you and your family!

I’ve been told by a number of my well-traveled clients that the “bundled” golf community concept is proprietary to Southwest Florida. I haven’t been able to confirm this, but during my 11-years of specializing in residential real estate sales in SWFL golf communities, I’ve definitely observed that a large percentage of my Buyers have opted for the economic advantages of purchasing a home in a “bundled” golf community.

For Buyers that can be down here only a few months of the year, it’s often difficult to justify paying the $15,000-$30,000 upfront initiation fees of even our most-affordable non-bundled, “equity/non-equity” country clubs, let alone those of the higher-priced clubs. “Bundled” golf communities—which include a full-golf/social membership with the purchase of any type of home, without the payment of an initiation fee—offer a viable lower-cost purchase option. In addition, the on-going annual golf fees in “bundled” golf communities are typically about half of those charged by the non-bundled clubs, which range between $8,000-$14,000/year.

The “mix”, or assortment, of homes in “bundled” golf communities also contributes to their overall annual savings, because these communities typically have a larger offering of multi-family homes (ie condos, verandas, carriage homes, and coach homes) which have lower total annual expenses than single family homes. These lower expenses are a result of homeowner’s insurance, exterior building maintenance, lawn & landscaping, and irrigation water expenses being pro-rated to each owner in the building as part of their condo/HOA fees.

Just as retail stores have to pay close attention to the prices of their nearby competitors, “bundled” golf communities have to do the same in order to remain competitive to prospective Buyers. Some “bundled” golf communities can justify higher annual costs by offering additional, and/or renovated, facilities and amenities; but, overall, they have to be very careful about getting out-of-line on their annual costs.

New construction “bundled” golf commun-ities offer a great opportunity to save on annual costs, as their developers typically “buy down” the annual golf fee in order to keep the community ultra-competitive to sell homes faster.

In my experience, most Buyers end up asking the same key question as they compare homes in various golf communities…”What are my annual carrying costs?”  Here’s a simplified—but reasonably accurate—recap of the average annual costs for a $300,000 multi-family home in SWFL’s newer and nicer “bundled” golf communities…

• Golf/Social Membership Fee $5,500
• Master HOA & Condo/HOA Fees 5,200
• Real Estate Taxes 3,300
• ANNUAL TOTAL $14,000                                  

Obviously, taxes will increase with the purchase of a more expensive home. The total annual cost will also increase if the community has a food and beverage minimum, special assessments, CDD charges, etc.  Owning your own golf cart will also add a “Trail Fee” to the total. 

If you want a lower annual overhead, focus on somewhat older (but still extremely well-maintained) “bundled” golf communities. And, as mentioned above, the new construction “bundled” golf communities typically have lower annual golf fees. Keep in mind, though, that this situation is short-term…it only exists until the developer turns the community over to the members, which typically occurs when the community is 90% sold-out; after that, annual costs will rise to a more-normal level.

A suggestion for significantly reducing the annual carrying costs of your SWFL home is to consider renting it out during at least part of the key season (January-April). In most of the nicer “bundled” golf communities, in-season rent will range between $3,500-$4,500/month for a $300,000 multi-family home, and renting it for all four in-season months will typically cover your entire annual expenses (not including principle and interest, if you financed it).  

In conclusion, “bundled” golf communities offer a great option for minimizing and controlling BOTH the upfront costs and the annual carrying costs of your new Southwest Florida golf home!

NOTE: For more information regarding SWFL “bundled” golf communities, please review my exclusive “Top SWFL Bundled Golf Communities” list.