Condos located near cart paths in golf course communities sell for lower prices than similar properties in the same communities, according to a new study published in The Appraisal Journal. Such condos are discounted an average 5.1 percent, according to the study. Certain cart paths can have a greater impact on the price of the property: condos near paths by a green are discounted 11.6 percent while those near tee boxes are discounted 8.6 percent, the study notes.
However, the study’s authors, Steve P. Fraser and Marcus T. Allen, found that regardless of proximity to cart paths, condos on higher floors sell for a premium compared to units on lower floors. “The premium associated with the condominium being on a higher floor may offset the discount for cart path proximity in some situations,” the study says.
Cart paths near teeing areas and greens tend to be more congested, as golfers often converge in those areas. Therefore, the congestion would affect condos nearby. “Ignoring the price effects of cart path proximity, tee, green, fairway locations, and floor level within buildings can lead to significant biases in value opinions,” the researchers note. “Adjustments may be necessary when subject properties and comparables differ on these elements of comparison.”
Source: “Golf Course Design and Real Estate Values: The Impact of Cart Paths on Condominium Prices,” The Appraisal Journal (Spring 2017)
