We are fortunate to live in scenic Northern Nevada which offers fabulous city, mountain, lake and golf course views. I’m often asked how much as these views worth when buying or selling real estate. To take a stab at this question, I analyzed 2007 MLS sales data (through 12/27/2007) for 3 of the most popular golf course communities: Somersett, ArrowCreek, and Montreux. The results vary by community, but overall golf course locations are still valued by buyers.
Somersett showed the biggest delta in average home price at a whopping 30%. However, much of this can be attributed to custom vs. semi-custom homes. The lot premium for price per square foot was 9% for homes with golf course frontage.
ArrowCreek had the largest premium for price per square foot with a 12% delta. I was really struck by the overall average sales price of $1,029,684. Of the 99 homes currently listed for sale in ArrowCreek, 44 are priced at $1 million or less. The market for the semi-custom homes continues to be very slow in ArrowCreek.
Golf course premiums had little effect in Montreux. There was a 3% increase in sales price for golf course homes, but a negative 2% price per square foot. However, since 65% of the homes had golf course frontage, the impact was minimal.
So, what does this all mean? If you’re planning to buy a golf course home, you should try to keep the price under the golf course premium. Since it’s a buyer’s market, you should be able to find a home with where the seller is willing to negotiate. If you’re planning to sell a golf course home, you can factor the premium into your asking price; however, given the high levels of inventory, don’t expect to find buyers willing to pay it now.
Other views? Over the next month I plan to do a similar analysis for city and mountain views. If you need the information sooner, please let me know, and I’ll prepare a specific analysis for your neighborhood.
Data courtesy of NNRMLS
December 29th, 2007 at 4:13 am
[…] Maureen placed an observative post today on Go For the Green! Golf Course Lot Premiums in the Reno Real Estate …Here’s a quick excerptWe are fortunate to live in scenic Northern Nevada which offers fabulous city, mountain, lake and golf course views. I’m often asked how much as these views worth when buying or selling real estate. To take a stab at this question, … […]