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Home Located On A Private Golf Course

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RMZ

Freshman Member
Joined
Aug 30, 2016
Professional Status
General Public
State
Pennsylvania
What would be the estimated increase in value of a residential property being located on the fairway of an established private golf course vs not being located on a golf course. There are no comps in the immediate area that answer the question to set an asking price for the property.

Thanks MAZ
 

Antonio Gatta

Freshman Member
Joined
Aug 22, 2016
Professional Status
Certified Residential Appraiser
State
Pennsylvania
The minimum that I've ever seen was a 20% difference in value and that is in the Pennsylvania area and as high as 50%. Try attempting a past sales analysis
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
It's going to depend on the neighborhood and the course. There is no list of adjustments for specific things. Each adjustment must be extracted from the market.
 

Tom Woolford

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Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I've seen some properties on a golf course which had a negative effect due to its location. Too many golf balls breaking the windows in the house.

Exactly. Many people consider it an inferior location due to lack of privacy. I know I wouldn't want a couple of hundred people a day walking past my pool, and generally locations such as that prohibit privacy fencing. I would never buy a golf course home. Around here, on resale, it is very difficult to measure a premium for the location. Developers charge a premium for vacant sites, but the resale market doesn't give a crap for the most part.
 

miktay

Senior Member
Joined
Jul 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
The market indicates the value. Not an appraiser nor sales agent.
Go back in times and check older sales of those with, versus those without.
 

Terrel L. Shields

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Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I normally think the difference is in the value of land. The premium is the difference in lot values with perhaps a small premium over that unless the GC is a failing enterprise. We have where prices stalled under bad management and the course failed.
 
D

Deleted member 128537

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In my area we find no difference in price between properties on a golf course and those that aren't. And we have TONS of properties like this; especially condominiums.
 

Rick Stillman

Senior Member
Joined
Jan 19, 2014
Professional Status
Certified Residential Appraiser
State
Colorado
Well, RMZ, you certainly have an assortment of answers to choose from.

In my market area, Denver, golf courses are very plentiful, and being located directly on one is usually a key feature that commands a premium price. I say usually because I haven't appraised them all, so I can't say all, of course. But I can say that I've never seen one that isn't valued much more for this feature, compared to a property that doesn't have this amenity.

A good appraiser should be able to isolate that value fairly easily, and fairly accurately. I do that many times a year, myself. I think I did two within the past month alone - maybe three. Of course, I can't tell you a "magic number" because my market is different than yours - and even if you were in my market, it changes constantly, kind of like the stock market. What will it be worth next month? I don't know - I have to analyze the data to find out.

The small price you would pay for this "verifiable" knowledge - which is vastly more important than a mere "opinion" from someone in the neighborhood, would be a great investment to aid in negotiating a purchase or sale, if that is what you are involved in. I'm always amazed at how so many people just take anyone's opinion on matters of such huge financial importance. I live by the mantra that opinions are like belly buttons - everyone has one.
 

KYLECODY

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
mmhmm. It depends...go back in time as far as possible and then compare it to properties in that date range.. Here it depends by golf course, neighborhood, city, etc. There is no set #. On more expensive homes here/prestigious neighborhoods it can be significant. In more entry level areas it is minimal.
 
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