Timber Inventory and Appraisals
Timber appraisals are performed by foresters going to the property and systematically taking sample plots in which all trees are measured and then recorded according to size, species, and product classification. The total volume and distribution of the timber is then estimated using this information. The latest market values for each by-product classification are then applied to calculate the total estimated timber value for the tract.
Appraising the value of timber requires solid knowledge of the timber market, careful measurement of trees, a thorough analysis of timber markets, and experience in determining how value will be recognized in the measured timber and forestland.
The objectives and the client’s intended use of the analysis and associated report determine the appropriate scope of the assignment.
While most appraisals involve fee simple ownerships, many assignments address more complicated ownership interests such as limited partnership shares in the underlying timber asset, undivided interests held by co-owners, leaseholds or leased fee estates, as well as other ownership interests in timberland.
When is a timber inventory and appraisal needed?
- For timber harvest planning
- For income tax purposes
- To evaluate investment opportunities
- To support public or private acquisitions
- For valuation of matrimonial assets
- To support financing for acquisitions
- To track the performance of an investment in forestland
- To determine the value of a conservation easement
- For eminent domain purposes
- For real estate partitioning
- For estate planning
- For timber trespass
Southeastern Forest Management’s foresters have appraised millions of dollars of timber for acquisition and divestiture for:
- Private landowners
- Corporate landowners
- Timberland investment management organizations (TIMOs)
- Real estate investment trusts (REITs)
- Forest product, sawmill, and logging industry
- Federal and state agencies
- Conservation groups