What You Need to Know About Harvesting Timber Part 3
In this three-part article series, we are discussing how to profit off of harvesting timber. In the first section, we taught you the basics. In the second section, we explained how timber is valued. In this final section, we will discuss some things to consider before you finalize the sale of your timber. If you are interested in learning more about vacant land in Florida that can be cultivated into a timberland property, our land professionals are here to answer any questions.
How Far Are You From the Buyer?
Although the total volume and type of timber you are cultivating are the primary elements factoring into the total value of the sale, it’s always important to consider your distance from the sawmill that is purchasing it. The resources and expenses needed to transport the timber can greatly impact the overall return you make in the sale. Generally, you want to sell to a local sawmill to mitigate these expenses.
During the selling portion, the more clearly defined the seller’s information is pertaining to the timber, the more likely you will receive a fair bid. A clearly defined sales map can benefit everyone involved in the transaction. When the logger is arriving to remove the trees, since most sales are not complete harvests, it never hurts to have the designated harvest area pinpointed with paint or signage. Better safe than sorry.
Consider Selective Cuts
When harvesting timber, it’s typically best to perform selective cuts rather than a complete harvest. This can provide the landowner with the best of both worlds where you are steadily generating earnings from sales, while also incrementally producing valuable assets for future sales as well. Of course, this also depends on the landowner’s financial situation.
Consult With Land Experts
If you are looking to buy land in Florida, it never hurts to consult with land professionals and foresters that are knowledgeable and experienced in timber real estate brokerage, property valuations, and are also aware of the local market price for timber. If you are inexperienced in selling timber and “go it alone,” there’s a good chance that you will not reap the selling price that you deserve for your timber. Of course, if the harvest is poorly managed, the prospective future timber development of the land can be compromised as well.
At Saunders Real Estate, LLC, our land professionals know that every investment into vacant land in Florida can offer the potential buyer a plethora of benefits. Whether it’s living on the land, visiting with family and friends for fun activities, or cultivating the property into a long-term investment that can steadily grow and stay in your family for generations, buying timberland is one of those rare opportunities in which you can enjoy all of these advantages and more.