There are three approaches available to value golf courses for assessment purposes and no single approach is best applied in all situations.  The Cost and Income Approaches are the most common, while the Direct Comparison Approach is useful in establishing a market value range.

The availability of relevant information often dictates the method of valuation.  In rural or smaller communities, golf course sales information is generally not available and income information may not be reliable, thus the Cost Approach is the preferred method.  In urban or larger centers, where sufficient courses exist and income and expense information is more readily available, the Income Approach may be the preferred method.

The emphasis of this valuation guide is on the Cost and Income Approaches.  However, information has been provided on use of the Direct Comparison Approach and its usefulness in establishing valuation ranges which can be compared to values generated by the Cost and Income Approaches.

Each of the approaches to value has merit when properly applied and good judgment is used.