Timber Appraisals

Timber Appraisals

A timber appraisal is an assessment conducted by a qualified forester to determine the market value of standing timber on forested land, even in cases where there may be no immediate harvest value.

Key aspects of a timber appraisal include:

  • Qualified Appraiser: A qualified and experienced forester with expertise in timber valuation conducts the appraisal. The appraiser's knowledge of local timber markets, tree species, wood products, and current market conditions is vital to provide an accurate assessment.

  • Field Inventory: The appraiser conducts a field survey to collect data on the standing timber's volume, species, and quality.

  • Timber Valuation: Using data collected during the field inventory, the appraiser applies appropriate valuation methods to determine the market value of the standing timber. The appraisal considers factors such as species-specific prices, prevailing market rates, property accessibility, and timber quality.

  • Report and Recommendations: After completing the appraisal, the forester provides a comprehensive report detailing the findings and calculations used to determine the timber's value. Additionally, the appraiser may offer recommendations on the optimal timing and approach for harvesting, taking into account the landowner's goals and market conditions.

Timber Appraisals FAQs

  • To ensure the credibility of tax-related documentation regarding your timber tax liability, opting for a qualified forester's appraisal is the most reliable approach.

    Moreover, engaging a qualified forester when selling your timber will help maximize your return on the timber sale. Research studies consistently show that timber sold with a forester's assistance results in higher revenue for the landowner, even after accounting for the forester's fees.

  • There are numerous factors influencing the value of your timber. Some of those factors include:

    • Tree species

    • Tree size (diameter and height)

    • Tree quality (straightness, soundness, presence of limbs, deformities, density)

    • Site soil conditions and workability

    • Property accessibility (existing access roads, highway frontage)

    • Distance to relevant lumber mills

    In addition to property-specific factors, the value of your timber will always be influenced by current market demands.

  • No. A timber appraisal focuses solely on the market value of your trees.

    Any non-timber values, including the value of land itself is not considered in a timber appraisal.

  • Yes, the value of trees on your property can be determined based on two categories: merchantable and pre-merchantable.

    Merchantable trees have immediate harvest value (IHV) and can be marketed in a timber sale today, reflecting their current worth if harvested now.

    On the other hand, pre-merchantable trees lack IHV but still hold value based on projected future yields. Appraisals for such trees consider various factors to estimate future returns and determine their present-day market value.

  • While there are many reasons why landowners should know the value of their timber assets, below are some of the more common reasons:

    • Considering a timber sale

    • Estate planning or inheritance

    • Financial reporting for tax purposes

    • Obtaining loans or insurance on forested property