Don’t hire a generalist to appraise golf assets! - by Jeffrey Dugas

Sears was once the most prized and dominant retail chain in America - a true icon that shaped consumer culture, suburban life, and even the American economy for much of the 20^th century. Its beloved catalog revolutionized shopping long before e-commerce existed. Sears transformed from a mail order company to a retailer in the 1920-1970s, then into the largest retailer in the US through the 1980s, with massive market share.  At its peak they employed 350,000 and built the Sears Tower (now Willis Tower) in Chicago, then the world’s tallest building, as a symbol of its dominance.

Sears’ decline wasn’t caused by one single factor, but the rise of specialized competitors played a key role in eroding their core strengths. Sears was a generalist giant: It sold appliances, tools, clothing, toys, electronics, hardware, and more in large mall-based stores. This model worked brilliantly in the mid-20^th century when consumers wanted one-stop shopping and Sears had strong private brands like Craftsman (tools), Kenmore (appliances), and DieHard (batteries). But they lost massive market share by the late 1980s and 1990s because specialty retailers and big-box category killers outperformed them in specific product categories. Companies like Home Depot (home improvement and tools), Best Buy (electronics and appliances), and Toys “R” Us (toys) captured demand that Sears had previously dominated as a “generalist.” They were no longer the cheapest (like Walmart/Target), not the most specialized (like Home Depot), and not premium enough to create a feel of excitement to attract new customers. This pattern echoes in other industries: Generalists often lose to focused players who own the category. This is true in golf, marinas, RV and other leisure and hospitality industries.

In today’s competitive real estate market, being a generalist is increasingly risky. Agents, brokers, investors, developers and appraisers who specialize in a specific niche consistently outperform those who try to be all things to all people.

Specialization builds deeper expertise, better networking, stronger personal brands, targeted marketing, greater trust from their clients and a better understanding of the assets. Industry experts have better insight into the nuances that can arise when selling, financing or appraising a specialty asset. Variables unique to the property type, such as recognizing the impact of membership liabilities on a private club, planning for reserves to address an outdated irrigation system, selecting the appropriate capitalization rate reflective of the cash flow risk, or allocating value between reality and nonreality. Generalists typically have not earned the trust, nor can they speak the language of the market specialist participants.

I started my appraisal career as a generalist, tackling assignments that included various real estate classes to include offices, shopping centers, industrial properties and apartments. But after working for five years with no real direction, I was fortunate to discover the vacuum apparent in the practice of golf property analysis. In the following decades, I have ridden the Tiger Woods wave, followed the economic ups and downs as they affect golf from the impact of 9/11 and the 2008 housing/credit crisis, and witnessed the resurgence of golf from the post pandemic. Just as Home Depot, Best Buy, and Toys “R” Us beat Sears by dominating one category, golf appraisal specialists like myself can outperform generalists by owning a specific niche instead of trying to serve everyone. Leisure Appraisal has access to extensive market data, better verification sources, and input from other golf experts in brokerage and finance (LIPG) which enhances the credibility of our work. As such, we strongly urge that you refrain from hiring a generalist for your golf advisory needs, but instead retain a golf course specialist with over 35 years of specific golf experience, and hire the professionals at Leisure Appraisal and Leisure Investment Property Group.

Jeffrey Dugas, MAI, SGA, is founder of Leisure Appraisal, Cheshire, CT., Annapolis, MD. and Boca Raton, FL.