| Prior to starting the income valuation process, economic income and expense figures need to be extracted from the financial or operating statements received by the assessor. Establishing market rates allows the assessor to verify the actual stabilized data on profit orientated courses that provide financial information and to consistently value not-for-profit, private, or for-profit courses that do not submit financial information. The most significant economic rates are the number of rounds played, average green fee and overall expense ratio. Correctly determining these market indicators allows for the production of reliable and defendable assessed values.
There is an equilibrium point between the price, supply, and demand - a point where revenue will be maximized. Profit-oriented courses strive to achieve this point. As profit orientation is the typical market motivation factor, all types of golf courses should be valued in comparison to profit-oriented courses. Therefore, the potential income from a public course should be the same as for a private or semi-private course of similar quality and rating.
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