If you have decided a broker is the right way to sell your campground, choosing the right one is one of the most important decisions in the whole sale. A good broker can bring more buyers, a better price, cleaner terms and far less stress. A poor fit can leave a park sitting on the market for a year with a price that is too high or too low.
GatherGrounds buys campgrounds directly, so it may seem odd for us to help you hire a broker. But for many parks a broker is the better route, and a well-run sale is good for everyone, buyers included. Here is what to look for and what to ask. If you want a comparison point, our Sell Your Campground page explains how a direct conversation with us works.
1. A track record with campgrounds and RV parks
Campgrounds are a niche. Look for someone who has sold several campgrounds or RV parks recently, ideally of a size and type similar to yours. A broker who mostly sells homes, or mostly sells restaurants, may learn on your deal.
- How many campgrounds or RV parks have you sold in the last three years?
- Which were closest to mine in size, region and season length?
- What were the asking and final prices, and how long did they take to close?
- Have you ever owned or managed a park yourself?
2. Buyer network and marketing plan
A broker’s value is largely the buyers they can reach. Ask to see how they would market your park, not just where they would list it.
- Who are the likely buyers for my park, and how will you reach them?
- Do you keep a list of active campground buyers? Roughly how many?
- Can I see a sample anonymous summary and offering memorandum from a past listing?
- Which marketplaces, industry publications and associations will you use?
- How will you create competition among buyers?
3. How they will value your park
Be careful with a broker who simply names the highest number. An inflated price can win the listing and then cost you months on the market. Ask how they arrived at their figure.
- What net operating income did you use, and what adjustments did you make?
- What cap rate or multiple did you apply, and why?
- Which comparable sales support that range?
- What could push the price lower in due diligence, and what should I fix first?
It helps to understand the basics yourself before these meetings: how buyers value a park on its income and a cap rate, and which records they will ask to see.
4. Fees, listing term and exclusivity
Commissions vary and are negotiable. Get every proposal in writing and compare the whole agreement, not just the rate.
- What is your commission, and is it flat or tiered? Is there a minimum fee?
- Are there any up-front, marketing or retainer fees? Are they credited at closing?
- How long is the listing term, and can I end it early if I am unhappy?
- Is the listing exclusive? Are any buyers I already know excluded?
- How long is the tail period after the listing ends?
5. Confidentiality practices
Word of a sale can unsettle staff, seasonal campers and lenders. A good broker has a clear process for keeping it quiet.
- Will buyers sign a confidentiality agreement before they see my financials or name?
- How do you screen buyers before sharing details?
- How will you handle site visits so staff and campers are not alarmed?
- When and how do you recommend telling employees?
6. Communication and the process
- Who will be my day-to-day contact: you or someone on your team?
- How often will I get updates, and in what form?
- How do you help with due diligence requests and closing deadlines?
- Which attorneys, CPAs and lenders have you worked with on park sales?
7. Check references
Ask for two or three recent sellers you can call, and then call them. Questions worth asking:
- Did the park sell at a price close to what the broker first suggested?
- How long did it take, and were there surprises?
- How was communication when things got difficult?
- Would you hire this broker again?
Also check that the broker’s license is active with your state’s real estate licensing agency.
Warning signs
- A valuation far above every other opinion, with little support
- Pressure to sign a long exclusive listing on the spot
- No recent campground or RV park sales to point to
- Vague answers about marketing, or a plan that is only “we will list it online”
- Reluctance to give references
Interview checklist
Interview at least two or three brokers. Before each meeting, gather your last three years of financials, your seasonal camper list and a site map so you can get specific answers. Afterward, compare them on:
- Recent, comparable campground sales
- Strength of buyer list and marketing plan
- How well their valuation is supported
- Commission, fees, term, exclusivity and tail
- Confidentiality process
- Who you will work with and how often you will hear from them
- What references said
If you are still deciding
Some owners talk with a direct buyer before or alongside broker interviews, to compare what each route might look like. GatherGrounds owns and operates three campgrounds in Michigan and Ohio, and you can reach us through our Sell Your Campground page if that would help.
Questions
How many brokers should I interview?
Two or three is usually enough to compare valuations, marketing plans and terms. Give each the same information so the proposals are comparable.
Should I pick the broker with the highest price estimate?
Not on that basis alone. Ask how each broker supports their number with income, cap rates and comparable sales. A well-supported estimate is more useful than the highest one.
What is a tail period in a listing agreement?
It is a period after the listing ends during which the broker can still earn a commission if you sell to a buyer they introduced. Agree on its length and ask for a written list of those buyers when the listing ends.
Can I exclude a buyer I already know from the listing?
Often, yes. Many brokers will agree to name specific buyers who are excluded, or carry a reduced fee, if you raise it before you sign.
Want a second perspective before you sign a listing? Talk with us confidentially through the form on our Sell Your Campground page.
