Timber Sales Blog
Land and timber, even when independent of the other both have value. Sometimes when land with timber on it sells, the new owner will harvest some of that timber and make as much money as they paid for the land. When something like this happens, the buyer clearly knows something that the seller did not. The buyer knew what they were looking for and the person selling the land did not know what they had.
If you are buying or selling land that has timber on it, or you are an agent for someone that is, you need to have knowledge of both land and timber selling. Not only should know you land value you should also know the value of different types of timber. Timber has the potential to be a very valuable asset, but if your land has scattered timber then it might not be worth as much. Where your land is will determine the value, but if you have land with thick timber then it could be worth $10,000 per acre.
When you decide to buy or sell land that has timber you need to know the value of the timber. As a buyer you could use the standing timber to pay of some of your investment, or you might choose to turn it into an immediate profit. When entering the timber sales market, you can speak with a forestry-land consultant to get some good advice. Negotiations sometime take place because the two side will value the timber at different values. This is fairly common with other resources such as gold, silver, and even fresh water.
There is more that goes into the cost then just the value of the timber, the buyer and seller should also know how much it will cost to harvest all of the timber. The buyer and the seller should both know the procedure to determine the value of timber. If you do not know the procedure then you should have an agent or broker help you out in this situation. Some of the things that you need to be able to do for this is understand maps, measure acreage, inventory of timber, uses of the product, and the market value.
As you should know, there is different forms and type of timber. Brokers, buyers and sellers that are involved in this kind of real estate should know the different types and the sales that are available for each type of timber and how they work. There are also computer programs that can help in determining the growth and yield of specific types of timber, this is a great tool for brokers and agents, it will help them better server their clients. Please check out this link if you have questions.