Golf Course Adjustments

[Charles Decker]

If a property backs a golf course here there is a land premuim stated on the tax records. This is anywhere from 10-100K. If I use a non golf course comparable I make an adjustment using the premuim stated in the tax records and explain in the addendum.

 

[Lee Lansford]

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?

As with everything that might affect value, the answer is "it depends". The answer must be extracted from the market data.

I appraised one SFR that was rear-adjacent to a public golf course. The house adjacent to my Subject had a VERY LARGE net erected between the golf course and the house; the house itself was aluminum-sided and there must have been literally a few hundred dents in the siding from errant golf balls. My Subject had some "pings", but much less than the neighbors. In these instances, the golf course locations did not have a positive contribution to MV.

 

[Fred]

using the premuim stated in the tax records

You actually copy the assessor's values?

 

[PropertyEconomics]

You actually copy the assessor's values?

Arent assessors qualified appraisers? Im sure if we asked they would show us their "work file" supporting their adjustments. Dont they have to? Isnt it public record.

 

[Fred]

Arent assessors qualified appraisers? Im sure if we asked they would show us their "work file" supporting their adjustments. Dont they have to? Isnt it public record.

So, that is a yes, you copy values from the assessor; or approve it as acceptable practice?

 

[Ted Martin]

Depends. There are some homes in my market which command a premium and others that don't. So in answer to your original question, there are some properties and some golf courses where there is NO premium for golf course frontage.

 

[Elliott]

Jonah said, I am doing a paired sales on a property to try and derive the contributory value ...

There's your problem. You do a lot of paired sales to derive contributory value?
I just adjust and wouldn't compared an apple with an orange.

 

[Parker]

What other appraisers find in other neighborhoods should not have any bearing on the issue. What matters is what you can measure in the neighborhood and market area where you are performing the appraisal. If you are going to base an opinion on a single matched pair, then you may be opening yourself up to problems if someone is harmed by the outcome of your value estimate. Before you commit, double check, look at more data, look at historic data and keep it in your workfile and cite it in your report.

 

[Vegan702]

If a property backs a golf course here there is a land premuim stated on the tax records. This is anywhere from 10-100K. If I use a non golf course comparable I make an adjustment using the premuim stated in the tax records and explain in the addendum.

What if the buyers aren't paying anymore for these golf course vs. non-golf course homes? Do you still make the adjustment just because the assessor did?

 

[Charles Decker]

Vegan, sorry I should have explained better (had to run out the door). Yes I do look at golf vs non golf sales and have typically found the difference to be very close to the premium stated in the tax records however there is a golf course subdivision on the east side that the market shows no difference for golf vs non golf lots. They do have a 10K premium however we do not adjust and explain in the addendum.