Golf Course Adjustments

[Judy Whitehead (Florida)]

Well, in one of the lands of golf courses.......there are occasions where the paired sales prove very minimal additional value and those that show a great deal of contributory value if they are on the golf course. More often than not, the difference is usually whether or not they are on a publc course or a private PUD. In the gated communities, the golf course lots usually appear to be the faves. Remember that paired sales don't have to necessarily be recent - they can be historic.

 

[Laurie E]

Seems unlikely, Jonah. Must be another factor(s) impacting your pairs. For the price of a couple dozen golf balls, I bet PE and Mr. R will figure out what that factor is.

 

[Mztk1]

In my area I've noticed the same thing. Where a golf course was once bringing upwards of 10% more in total value, today, in some places, they are selling without a premium, but selling quicker.

With all the houses on the market it seems buyers are getting very, very picky. The greens have chemicals that run off into the yard; golfers go by starting at dawn and staying until dusk; look honey, is that an alligator in the water trap? Yada, yada, yada.

What I have found in many cases is that a golf course is worth no more than a private rear yard. Conservations, ponds, long yards with good hedgerows, are all about equal when in the past, recent past I might add, the golf course blew them away.

And a public course? Forget it. Who wants drunks driving their golf carts in your rear yard? Or tripping all over themselves on your back lanai looking for their errant ball. The other morning my friends woke to find one guy digging divits in her year yard with a pitching wedge while two other guys were sitting at her patio table laughing and carrying on. She just waved and got herself a cup of coffee.

As for using a paired sales analysis with yesteryear's data, I wouldn't do it. Times have changed. What was true in 2006 is not necessarily true today.

 

[Couch Potato]

I am doing a paired sales on a property to try and derive the contributory value of a residential home backing a golf course if any. So far my analysis is leading me to believe there is no value difference. Has anyone else found similar results? Could this be that the location is offset by the golfers and the house being beat to hell with golf balls?

Don't impose your opinion on the data, pull your opinion from the data. I have seen similar results before. I check and rechecked the data; it is not an intuitive conclusion, but it may well be how the market is functioning.

You do need to consider that not all golf course lots are equal, and neither are all golf courses. The quality of the course or its long term prospects as a viable course could be the cause of no premium. When you make a counter intuitive adjustment/non-adjustment, be sure to include the data that supports that action in the report. Having it there makes it easier to respond to the inevitable phone call.

 

[Jonah]

I love this place. Where else can you go and get such a wealth of information and on such a broad spectrum. I swear the information I gather from here should have been the curriculum taught in my Real Estate classes 4 years ago. The paired sales used were 1 month apart from each other this year. This is a public course away from the major cities here and not in a luxury area. I thank you all for your help and opinions.

 

[Amy Perkins]

I agree with the others that it would likely be worth more. However, be careful about your adjustment through matched pairing in regards to the market. It is my understanding that in an up market, the view adjustment would be a greater percentage than in a down market.

 

[Vegan702]

I have found that homes that backed a city run golf course sometimes brought no premium. This was just at one golf course though which wasn't in a great part of town.

 

[Wendy]

In my area I've noticed the same thing. Where a golf course was once bringing upwards of 10% more in total value, today, in some places, they are selling without a premium, but selling quicker.

With all the houses on the market it seems buyers are getting very, very picky. The greens have chemicals that run off into the yard; golfers go by starting at dawn and staying until dusk; look honey, is that an alligator in the water trap? Yada, yada, yada.

What I have found in many cases is that a golf course is worth no more than a private rear yard. Conservations, ponds, long yards with good hedgerows, are all about equal when in the past, recent past I might add, the golf course blew them away.

And a public course? Forget it. Who wants drunks driving their golf carts in your rear yard? Or tripping all over themselves on your back lanai looking for their errant ball. The other morning my friends woke to find one guy digging divits in her year yard with a pitching wedge while two other guys were sitting at her patio table laughing and carrying on. She just waved and got herself a cup of coffee.

As for using a paired sales analysis with yesteryear's data, I wouldn't do it. Times have changed. What was true in 2006 is not necessarily true today.

Bing! Bing! Bing! We have a winner!

Well put Jim.

 

[Mike Boyd]

Back in my younger days, a buddy of mine had a condo on a golf course, about 150-200 yards from the tee, with a slight rise between the tee box and his place. You could see the tee box from the 2nd floor balcony, so we would station someone on the upper floor, and someone downstairs at ground level. When a foursome would tee off, we would have time to run out and move the first 2-3 balls around without them seeing us due to the little hill. The favorite was to take the best shot and throw it way back up towards the hill and hear the guy beech about how he just knew he hit it further, wind must have caught it etc. or take the best shot and wing it on down the fairway, and hear the boasting to his buddies about the "drive of the year". Sometimes just snagging a ball and seeing how long someone would look for it before giving up was pretty good too.:icon_mrgreen:

You could also play the 4 holes closest to his condo without the folks in the clubhouse seeing you, so, if there was an opening in the schedule (nobody about to tee off) we would play a 4 hole round, college kids didn't have 40 bucks for greens fees.

As far as the OP, its typically a premium here, anywhere from 50% to 300%+ more than off the course lots.

So that was YOU!!!!.

 

[Mike Boyd]

Depends on the golf course and the value of the homes. High end golf courses such as Silverado Golf and Country Club in Napa where a frontage lot could be as much as a million dollars over a non frontage lot.

At the Santa Rosa (City owned) course there is a marginal difference in value. However, the golf course is fenced off with a chain link fence so there is no direct access.