Golf Course Property Valuation: Expert Guide

Looking to understand golf course property values? Here's what you need to know upfront:

Golf course homes are hitting record prices in 2023. Why? Two big reasons:

1. Golf's massive popularity surge since COVID-19
2. Booming luxury home markets, especially in Arizona

4 Main Factors That Set The Price:

Watch Out For:

• Stray golf balls (location matters)
• Course closure risks
• Rising maintenance costs
• HOA and club fees

Bottom line: Golf course properties typically sell for 7.6% more than regular homes, but location and course quality can push that premium much higher.

Need specific values? The rest of this guide breaks down exact pricing factors, risks, and how to calculate true market value for golf course properties.

Basic Rules of Golf Course Property Pricing

Golf course property pricing comes down to four key factors that affect what buyers will pay:

The USPAP (Uniform Standards of Professional Appraisal Practice) guides how we price golf properties. They look at:

• Course grass quality
• Water systems
• Upkeep needs
• Member programs
• Running costs

What Makes Golf Properties Special

Golf homes need a different pricing approach than regular houses:

Here's something interesting: The closer you are to the course, the more your property is worth. Just look at North Scottsdale's data.

"These four factors shape how supply meets demand. When the market's view of value shifts, prices can change fast." - The Appraisal of Real Estate

When pricing golf properties, you need to check:

• Total property value (land + buildings + equipment)
• Who owns what
• Other possible uses
• Similar properties
• Market standing

COVID changed everything. With 2,000+ courses closing pre-pandemic, limited supply now pushes prices up more than ever.

Expert Methods for Property Pricing

Here's how professionals figure out what golf courses are worth:

Market Price Analysis

Looking at other golf course sales SOUNDS simple. But here's the problem:

• Golf courses don't sell often
• Every course is different
• Markets change fast

"The value is driven by the income the property is capable of generating." - Larry Hirsh, Appraiser and Broker

Income-Based Pricing

This method looks at money from:

• Green fees
• Cart rentals
• Pro shop sales
• Food services

Here's what buyers pay: Regular investors offer 4-6x cash flow. Strategic buyers might go up to 6-8x. But watch out - only 32% of courses made money in 2023.

Building and Land Value

The cost approach breaks it down like this:

"A professional REALTOR has the expertise and tools necessary to price your home accurately." - Don Matheson, REALTOR® and Founder of The Matheson Team – RE/MAX Fine Pro

For taxes, most assessors use rates between 6-15% (11% is normal). They look at:

• What's on the course
• Local rules
• Running costs
• Other ways to use the land

What Affects Property Value

Golf course locations have a direct impact on home prices. Let's look at the numbers:

Here's a real-world price breakdown:

But it's not just about having a golf course nearby - the course's quality makes a big difference:

• A well-maintained course boosts nearby property values by about 7% each year
• If a course closes due to poor maintenance, nearby home prices can drop by 50%
• Private club locations typically sell for more than homes near public courses

"Golf courses add ≥25% property value to homes depending on proximity." - SRI International, 2002

The local market plays a huge role too. Check out these numbers:

What drives these differences? It comes down to:

• Supply and demand (over 2,000 courses closed before COVID)
• Local economy
• How well the course is kept up
• How far homes are from the course

Data from GolfCourseHomes.com shows Arizona properties near golf courses have held their value after COVID. Makes sense - people want outdoor spaces and nice amenities now more than ever.

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Luxury Property Price Factors

Golf properties at the high end sell for more money based on specific features. Here's what drives their prices in 2023:

Let me show you how these factors play out in real communities:

1. Designer Course Impact

Take Desert Mountain in Scottsdale. It has six Jack Nicklaus courses, and homes there sell for up to $13 million. Why? Because Nicklaus's name adds serious value.

2. Supply and Demand

Look at Panther National in Palm Beach Gardens. It's the first new golf community in the area in 20 years. The result? They can't keep up with membership requests.

But it's not JUST about golf anymore. Today's buyers want:

• Pools with waterfalls
• Home theaters
• Wine rooms
• Private gyms
• Smart home tech

"Desert Mountain takes a long-range approach to its Platinum Club identity by continuously improving and adding to our club amenities." - Damon DiOrio, CEO of Desert Mountain Club

Want proof these features matter? A Silverleaf mansion just sold for $26.1 million in June 2022 - the highest sale ever in Arizona golf communities.

Here's how different amenities boost property values:

"Within The Cabot Collection, we prioritize choosing inspiring settings that will stand the test of time." - Ben Cowan-Dewar, CEO of Cabot golf brand

In places like Arizona, where you can golf all year, these features help properties keep and grow their value.

Understanding Risks and Research

Buying a golf course property? You need to know the risks. Here's what to check before you buy:

Your research should take 30-90 days. Here's what to look at:

Here's a real story that shows why research MATTERS:

Farmstead Country Club sold for $2.85 million to builders. The golf course? Gone. Homeowners lost their views when it turned into houses.

"It's more than just business - for many people, it's personal and painful." - Scott Saxton, Just For Buyers Realty

Your risk level depends on where your house sits:

Look at Myrtle Beach - they went from 120 golf courses to 90 since 2000. That's why you MUST:

• Read ALL HOA rules about the course
• Check the course's money situation
• Get the right insurance
• Look at local building plans
• Check water rights

The market's hot - in 2021, golf course lots hit $415,000 on average, with 460 lots selling for $232 million. But don't let these numbers rush you. Take time to check everything before you buy.

GolfCourseHomes.com

Want to know what golf course homes in Arizona are REALLY worth? Here's how GolfCourseHomes.com figures it out:

What affects the price? Here's the breakdown:

For buyers, they dig into:

• Where golf balls might land
• Early morning mower noise
• How many golfers walk by
• What you'll pay to play
• Community rules and fees

For sellers, they check:

• What nearby homes sold for
• Where the market's heading
• Your home improvements
• What the community offers
• New building plans

Here's how they keep you from making pricing mistakes:

Their team knows Arizona's golf communities inside and out. You get specific numbers - not guesses - about what homes are worth and where prices are going.

Summary

Golf course properties come with specific price factors that can make or break their value:

Want to buy? Here's what moves the price needle:

Selling? Know these numbers:

• Golf homes sell for 7.6% more than regular homes
• San Antonio golf properties grab 9% higher prices
• Course views add 5-12% to home prices

"Golf courses boost nearby home values by 25% or more, based on how close you are." - Nicholls and Crompton, 2007

Here's the thing: These are just averages. Your property might be different. Get a pro to look at YOUR specific situation and features to nail down the right price.

Related posts

• Golf Course Communities
• 6 Tips to Maximize Vacation Rental Income on Golf Properties
• Arizona Luxury Golf Course Homes: Views & Landscaping
• 10 Questions to Ask Before Buying a Golf Community Home