Golf Course Pricing

There are different methods that can be used to estimate value of a property.

They include:

• direct comparison approach,
• income approach, and
• cost approach. 

The direct comparison approach compares properties similar to the subject property. As no properties are exactly identical, adjustments are made to the subject property price either up or down depending on the comparable properties used. As the purchase or value of a golf course can be both subjective and objective this is usually the best indicator of a properties value.  

The Income Approach is an analysis of the actual and/or estimated income potential of the subject 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. 

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.