Determining the value of land with timber involves several factors. Both the land and the current value of the growing timber on it are assessed. Determining the value of these components is based on several factors.
Timber Value
The value of timber is assessed based on:
- Species: Value is affected by the species of timber. Oak, walnut and pine are more valuable than other species.
- Volume: Timber is measured in board feet for sawtimber or tons for pulpwood.
- Quality and Size: Larger, mature trees with fewer defects have a higher value.
- Demand: Timber prices, much like grain prices, can be affected by supply, demand, and economic conditions.
- Harvesting Costs: Accessibility to the timber can affect the costs associated with logging, impacting the net value.
Land Value
The value of the land is based on:
- Location: Proximity to mills and markets can increase value.
- Soil Quality and Topography: Soil that is nutrient rich can promote tree growth and increase value. If the land allows for easy harvesting, this can also increase overall value.
- Land Potential: Are there additional uses for the land (hunting, farming, development)? The expanded potential for land once the timber has been harvested can affect its overall value.
- Access and Utilities: Proximity to roads, water, and power will contribute to the value.
To help estimate the value of the timber, real estate professionals may bring in a forester to conduct a timber cruise. This will estimate the total volume of usable wood on the land. Pairing this value with the value of the land will give you a total value of the property. Our team is ready to help you understand the value of your timber – let’s start a conversation; call us today at (219) 261-2000 to get started.
