How to Value Your Golf Course 

Know what your Golf Course is worth in todays market

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Golf Course Value Procedures

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There are different tests or methods that can be used to estimate value of property similar to the subject. They include the direct comparison approach, the income approach, and the cost approach. Not all methods are equally applicable. Excluding any of the three traditional approaches to value constitutes an Extraordinary Limiting Condition. Disclosures with reasoning for exclusion and/or inclusion follow.

 

The Direct Comparison Approach:

The direct comparison approach is directly related to the prices of similar, competitive properties, which then indicate the property’s value. The direct comparison approach looks at elements of comparison: the differences in the legal, physical, location, and economic characteristics of similar sold and listed properties, and more closely at differences in property rights, date sold (passage of time), location, land use, and financing. It is the study of the actions of buyers and sellers functioning in the open market place. The analysis of similar sold properties located in a similar market place of the subject property provides historic open market evidence while properties presently offered on the open market offer an insight into market trends.

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The Income Approach:

The Income Approach is an analysis of the actual and/or estimated income potential of the property, rendered into an estimate of value by a capitalization process. The process provides an indication of the present worth of the future benefits of the income stream. The income stream’s quality, quantity, and durability, as measured against the marketplace, determine the rate at which the net income is capitalized.

The Income Approach is utilized.

Real property similar in use to the property is purchased for the income produced as well as for potential capital appreciation.

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The Cost Approach:

Valuation based on the current cost of reproducing or replacing the improvements less accrued depreciation from all causes, plus the market value of the land 

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