Property value is something we all understand Buying or selling, we look at the acreage, the topography, the location, and we even look underground to see if there’s any value there. But what about the trees?
Timber is an overlooked element in assessing property value. Taking the time to get a professional inspection doesn’t always have to result in an immediate harvest. Instead, more and more landowners are starting to realize that, just like oil and mineral rights, timber value can contribute to the overall sale price of land.
Assigning a value to your timber combines a number of factors. The chief variables to any assessment are size, species, age, defects, and distance. Foresters use some incredibly high-tech instruments to measure each tree’s diameter. It’s hands-on; an inspection can take hours, days, or weeks, depending on the size of the property.
As they record the size, foresters will also note the species of each tree and add it to a tally. Each species has a different market value, with certain varieties worth much more based on its end-use. They’ll also estimate the age of the tree, and give an assessment of the overall health of each tree by observing its bark, leaves, coloring, and any known history of the forest. Finally, another determining factor is about accessibility and location; how much will it cost to log, transport, and process the trees from that particular job site?
This information is a crucial part of understanding your real property value. As a landowner, your timber can be just as financially important as any other asset. There’s another value, too. While homes may deteriorate in value, or take regular work to maintain, a forest is a regenerating source of income. When managed properly, landowners can plan out consistent, profitable harvests over the decades.
Interested in learning just how much your timber adds to the value of your property? Ready to put a plan in place to understand what your next harvest might look like? We’re here to help.