Valuing Standing Timber on Small Acreage

For many recreational land buyers and investors, the process of acquiring their property is generally the sole focus, but as with any investment, there are additional considerations which need to be explored. When searching for land, most perspective buyers will come across recreational land for sale that will have some timber on it. As a buyer, it’s important to determine up front how much timber matters to you.

If there is timber on the property that you wish to buy, it can add significant value. However, determining that value is not as easy to quantify. There are factors that govern what the timber is worth. How much timber are you considering marketing? What species, size, and quality are the trees? How much timber are you considering harvesting? It might not be worth it to market a small amount of timber. There are even more variables that needed to be calculated in as well.

Timber considerations can have a significant impact on your buying decision and may factor-in on your financial plans for the property. For a recreational land buyer, the timber may be a key part of your evaluation of a tract for its quality of wildlife.

Determining the worth of timber can cause slight anxiety if you do not know where to start to obtain information. Pat Porter, owner and broker at RecLand Realty, shares his thoughts on what should you consider when it comes to assessing a property with a timberland component.