CHICAGO (May 12, 2010) –Lakefront lots sell at higher premiums than lake view lots, which sell for more than lots with golf course views, according to the first academic study to explicitly model different golf course, lake, mountain and lakefront views. The study appears in the Spring issue of The Appraisal Journal.
The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest organization of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.
“The Million Dollar View,” by David Wyman and Stephen Sperry, investigates the pricing of golf course, lake and mountain view lots. The authors used GIS analysis of a development in Sunset, S.C., and found that price premiums ranged from 124 percent to 287 percent for lakefront lots, from 94 percent to 133 percent for lake view lots and from 42 percent to 85 percent for lots with golf course views. The authors also found that even after the housing bubble burst, lakefront lots continued to sell and in fact sold at increasing prices.
“The slope of a lot, length of shoreline and proximity to the lakeside village were also found to be statistically significant variables influencing the value of the property,” the authors found.
“The research focuses on The Reserve at Lake Keowee ... in (northwestern) South Carolina, a 3,900-acre lakeside golf course community development with approximately 600 lots sold between January 2000 and December 2008 at a total price of close to $200 million.” The golf course was designed by Jack Nicklaus.
Wyman is a doctoral student at the University of Aberdeen in Scotland and a lecturer with the Arthur M. Spiro Institute for Entrepreneurial Leadership at Clemson University. Sperry is an assistant professor in the Department of Planning and Landscape Architecture at Clemson University and has extensive background with ESRI and the application of geospatial analysis.
To read “The Million Dollar View” in the Spring issue of The Appraisal Journal, go to http://lumlibrary.org/webpac/pdf/TAJ2010/MillionDollarView.pdf
Other articles in The Appraisal Journal’s Spring issue include:
“Incorporating Highest and Best Use Into Accounting Standards,” by I. Richard Johnson, Ph.D., CPA, K. Edward Atwood, Ph.D., CPA, and Larry Walther, Ph.D., CPA, looks at the recent changes in accounting valuation standards.
“Valuing High Performance Houses,” by Sandra K. Adomatis, SRA, looks at how to appraisers can approach a valuation assignment for an energy-efficient home, describing the different green certification programs and how the appraiser can document a builder’s or homeowner’s claim that a home is energy-efficient.
“An Update on Property Rights Compensation Law for Appraisers,” by Marcus T. Allen, Ph.D., and Charles C. Carter, Ph.D., examines state referendums meant to compensate landowners after government policies are put in place that restrict development of private property.
“Professional Valuation in Russia,” by A. I. Artemenkov and I. L. Artemenkov, describes the forces driving the evolving valuation profession in Russia and the efforts to create laws, standards and methodologies that will lead to uniformity and professionalism.
The Appraisal Institute is a global membership association of professional real estate appraisers, with more than 25,000 members and 91 chapters throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Members of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA and SRA designations. For more information regarding the Appraisal Institute, please visit www.appraisalinstitute.org.