The Direct Comparison Approach is based on the premise that the market value of a golf course property will be equal or similar to the prices recently paid for similar courses. Since golf courses do not sell frequently, sales data tends to be limited. If sufficient sales are available, this method can provide a reliable estimate of value. Even if sales data is available, there are a number of challenges with this approach. Generally, this approach is used to establish a reasonable range in value for the property being assessed.

Two of the major difficulties with the Direct Comparison Approach include:

• The sales price does not typically reflect the fee simple value of the assessable real estate. The price includes such items as equipment, non-tangible interests, and non-assessable personal property. Therefore, analysis of the sales price often requires a number of adjustments to reflect non-assessable items to represent the fee simple value of rights to the property. Such adjustments are generally subjective, due to difficulties in developing valuation guidelines. They are also difficult to make, due to a lack of sales information. This lack of data and absence of uniform guidelines does not allow for the proper application of mass appraisal principles, i.e., commonly available data and statistical testing of results.
  
  
• Golf courses are specifically designed to be unique or different. Because of variance in amenities, difficulty of play, location, competition, and condition of the course, it is difficult to apply the sales price of one course to another.