The Cost Approach requires valuation of the land along with analysis of building values.  Land should be valued using the Direct Comparison Approach.  Ideally, comparable land sales should have approximately the same area as the subject site, similar zoning, and a comparable location and these sales should have taken place close to the date of valuation.  However, this is rarely the case.  Assessors usually face the difficult task of adjusting the only sales that are somewhat comparable.

Assessors should exercise caution in establishing the land value of a golf course that also incorporates a residential development.  The value per acre for the golf course lands is probably not the same as the value per acre for the residential lands.

Land values should be established on the basis of dollars per acre (or dollars per hectare).  Often the only available source of market evidence for large tracts of land is from sales of farmland.  Assessors should always be aware of other possible market indicators available from golf course expansions.

Adjustments to value may have to be made for the following points of comparison between the subject and the sites that have sold:

• location,¹
• zoning,
• size,
• topography,
• soil conditions, and
• date of sale.

¹ Re: Brampton Golf Club Ltd. v Town of Mississauga [1972] 2 O.R. 816