Have you ever wondered if golf course homes keep their value, regardless of the area? For example, is a golf course community property located in the mountains still more valuable than a home not in a golf course community but with a beautiful mountain view? According to the National Recreation and Park Association, golf course homes overall have about 15-30% higher property value than a home not on a golf course. In general, a golf course in any neighborhood is supposed to bring about 7% higher property values to homes in the surrounding community, even if those homes are not a part of the golf course.
This article will be a common exercise in looking at real estate comps, or ‘comparable properties’ which is the act of looking at homes in similar size, amenities, features and property location. When we compare properties as part of a golf course, and ones that are not, overall golf courses do fetch a large asking price for sellers and make it a good investment for buyers, though there are a few exceptions. For this exercise, we’ll be looking at median home prices in different areas throughout Colorado like the city, rural areas and mountains. By looking at median prices, it diminishes the extremes of the pricing spectrum.
Starting off in the urban areas around Colorado, such as Denver, Highlands Ranch, Centennial, and Boulder; these are still very hot markets as they are desirable locations for home buyers.
As of the end of September 2023, the median price for all properties (IE: townhomes, condos and single family homes) in the 7-county Denver metro area was $580,000. For single-family detached homes, the median is $638,000. In comparison, the median price of a golf course home throughout the 7-county Denver metro area is very similar at around $625,000. Keep in mind these are just median prices, and homes for under this price are absolutely available in the Denver metro area. However, in both scenarios, it depends on where the home is located. For example, a golf course home as part of a country club can fetch prices of over $1 million.
Overall, a few reasons why golf course properties keep their value and increase at a higher value, as compared to other homes, are appreciating features like up-to-date amenities, the well-kept grounds, the views, community offerings like a clubhouse and the square footage space. While it can vary greatly, the average golf course home is a few hundred square feet larger than the average square footage in a normal home (2,200 square feet vs. 1,800 square feet respectively) according to research done by The Coastal Business Journal.
Rural areas are considered any land that isn’t urban and properties that are outside of a big city. Here in Colorado, this may be considered areas that are currently being developed, or areas that are dedicated to farming land such as Cripple Creek, Cortez or Canon City. Farm land prices in Colorado depend on the acreage and the location, but according to Land and Farm, the median price per acre of farmland in Colorado is about $1,700 per acre. Comps in these areas may not be an exact comparison because the odds of a golf course property home featuring multiple private acres are not realistic.
Of course, rural areas may include smaller cabins too, and not just farm land, which can have a much lower price tag than a large farm. For example, the median home price in Canon City is about $320K. In comparison, a golf course property in Canon City (specifically in Four Mile Ranch Golf Club) is $350K. In this example, golf course properties fetch a 9% higher price than homes not located on a golf course.
Anyone familiar with mountain properties will know that mountain homes can be pricier than both city or rural homes. The reason being is that property values in general will always increase with breath-taking views and desirable locations, and mountain properties will have both of those in spades. That goes double for mountain properties located in ski communities. For example, Beaver Creek, a popular ski community, still commands high property values regardless of being on a golf course or not. Beaver Creek, located in Summit County, has a median home price of $990K. Large mountain homes with great views can command price tags of millions of dollars but, just like rural areas, there are also smaller cabins and single family homes in Beaver Creek that would start around $200K. In comparison, a home in the coveted community of Beaver Creek Golf Club has an average price of $7.2 million. In this example, a golf course home commands much higher values than the average community home but may not be pricier than a large mountain home with amazing views and large square footage.
Property values can vary greatly from location to location but it does seem that golf course properties fetch higher values on average when looking at the three major Colorado locations: city, rural and mountain. This makes a golf course community home in any area a good investment for both home buyers and home sellers throughout the Centennial state.
Check this article out in Divot Magazine: https://issuu.com/divotmagazine/docs/divot_magazine_-fall_winter-_2023?fr=xKAE9_zU1NQ
Do you want to search for homes on a golf course? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]