Golf course condominiums located near cart paths – especially those close to tee boxes and putting greens – can sell for lower prices than other golf course condos, according to an article published this week in The Appraisal Journal, the quarterly publication of the Appraisal Institute.
“Golf Course Design and Real Estate Values: The Impact of Cart Paths on Condominium Prices” analyzes golf course condominium prices and determines those closer to golf cart paths sell at a discount of 5.1 percent in the study sample. The study finds that certain cart path locations bring even greater reductions in sale prices, with an 11.6 percent discount for homes near greens and 8.6 percent for homes near tee boxes, the authors write.
The results of the analysis suggest there exists a negative and statistically significant relationship on condominium prices in the presence a proximate golf cart path. The prices paid for condominium units with proximate cart paths are substantially lower than the prices of similar units that are not proximate to cart paths. The relationship between property value and cart path proximity is thus an important consideration for appraisers when selecting and/or adjusting comparable sales properties for use in forming value opinions in golf condominium communities.
Also in The Appraisal Journal’s Spring 2017 issue, “Appraisal of Residential Water View Properties” introduces a new geographic information system method for measuring the quality of water views of residential properties. This methodology can be used for estimating the price impact of higher-quality views.
