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Timber has physical, market, and tax driven growth components. We apply forestry to grow vigorous and large trees, we sell timber to maximize income, and we properly schedule and record activities to minimize tax liabilities.
Are land and timber values the same?
Occassionally, but generally only on very large ownerships. Typically timber values are a percentage of land values. For example, a 100-acre woodlot may be worth $225,000 and contain $40,000 to $100,000 worth of timber, whereas a 5,000-acre ownership may be worth $3,200,000 and contain $2,000,000 to $2,500,000 worth of timber.
What, besides current timber volumes and value, contributes to the value of timber land?
Shore and road frontage and access, to and within the property, can significantly influence a lot's value. The land's cash flow potential, capital needs, and tax implications may also determine it's worth. We urge buyers to verify sellers' claims about timber volumes, timber values, acreage, and rights of way.
How much do forest counseling services cost?
Costs are dependent on parcel(s) size and a buyer's preferred level of confidence. A simple walk-through may be sufficient, though elsewhere we may recommend a more extensive review, perhaps including a timber inventory.
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"I've bought a lot of land over the years and Harold has helped me know when to buy and when not to. I wouldn't do it until my forester looked at it."
Dan Gatz Jefferson, Maine
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