Gold Supporting Member
- Dec 5, 2008
- Professional Status
- Certified Residential Appraiser
in my market there was an 18 hole golf course located in a rural area with no subdivisions surrounding it, only recreational wooded land and agricultural land. im not a golfer but according to those in the area that are, in the years past it was a very nice course and was on some kind of national course list. the course owner build 6 small detached rentals on a hill over looking hole 3. when i was still working with my supervisor he appraised it for a local lender/client at not much more than land value. i dont know all the details of his analysis or anything as it was not a part of my training, at this point i was already a certified residential appraiser and we only worked out of the same office. i just remember the course owner coming to the office a few times upset about the valuation.I met an MAI in an AI class and all he did was appraise Golf Courses all over the USA. He said he liked to play golf, and he said this was a perfect match for him.
the course owner must have found a someone to lend on it because a few years later the property went into foreclosure and was for sale while still in operation. (i dont know the details of the agreement or the listing prices but it was definitely still open.) a few years after that it eventually went to auction. it was split into three parcels; the course was sold slightly below fair land value $281,550 and the buyer converted it to pasture, the club house sold for $31,000 and was converted to a single family home, the former golf course owner still owns the parcel with the 6 rental units.
i was recently contacted by an attorney to provide a liquidation appraisal for the parcel with the 6 rental units. the attorney told me the original appraisal was done by someone from florida and the valuation of the entire real estate (golf course and rentals) was over 3 million. being a residential appraiser i turned down the request. it would have been nice to read that appraisal though.