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Golf Course View1

Most people are not surprised to hear that a golf course view is a marketable amenity for which buyers pay more.  Did you find yourself saying, “Well, of course”?  Carol Vergara and I were surprised a few years ago when we were asked to argue the market reaction to golf course views.

The data we researched included properties surrounding a specific golf course and other courses in Rockland and Westchester County.  In every MLS listing researched of a property viewing a golf course it was described in the marketing remarks as an amenity.  When local real estate brokers in those areas were surveyed all considered a golf course location positive in terms of view and prestige, even if homeowners had to yell “fore” in their backyards.

We also analyzed sales over a 4 year period in a townhouse development built around a golf course and marketed from 2005 through 2009.  Within that complex, similar units, contracted at the same time, with and without a golf course view were analyzed.  Based on that analysis, the premium paid for a golf course view ranged from 5.9% to 6.85% depending on the contract year.  The sales manager for the project confirmed these results.  Throughout the marketing of the project, regardless of changing market conditions, buyers paid more for units with a view of the golf course.

Since it is difficult to find a significant number of properties that are comparable except for the view, the data is old. We frequently look at our market to ensure that the difference remains.

What does this mean on an appraisal in our market? While it is important to remember that there is no hard and fast rule, it could mean that a property with a golf course view could be worth ± 5% more than a comparable property (please see our blog post “The Search for Perfect Comparables”) without a golf course view.

So, as a homeowner or real estate professional, from your experience or perspective what is your thinking? How much do you think a golf course view is worth?

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