Grand Traverse Conservation District » Tips For Marketing Timber

Some things you should know before you sell trees:

Timber is not a controlled-price commodity. Its value is based on markets, species, quality, accessibility, etc. The actual fair market price for any group of trees being offered for sale is best obtained by soliciting sealed bids from prospective buyers.
It is never a good idea to sell something that you own if you do not have some idea about its worth. If a timber buyer approaches you and suggests that he give you a certain amount of money to cut and remove all trees in your woods that are" 16 inches and larger," you should be very cautious when considering the offer.
The value of timber is contained more in the quality of the wood in a tree than in the quantity of wood in a tree. Saw log quality is expressed in terms of log grade. Grade 3 (low quality), Grade 2 (medium quality), and Grade 1 (high quality) are the commonly used rankings. Veneer logs are logs of very high quality. Other things being equal, the percentage of yield of high-grade lumber increases as log diameter increases. Grade 1 and veneer logs require that a tree be at least 16 - 18 inches dbh.
Marketing timber instead of just selling it means that you are in control of the entire process and know what to expect.

Steps in Marketing Timber

Seek professional assistance. For most landowners, selling timber is not a common transaction. Timber buyers are in the business. Hire a reputable consulting forester or work with a reputable industry forester. Consult with your local conservation district.
Click here for a list of area consulting foresters
Select the trees to be cut and estimate volume and value.
Determine method of sale and know the possible tax consequences. Most private woodland owners sell their timber as stumpage using one of two types of sales:
1. Lump-sum sale - single payment is made to the seller for the trees designated for sale. Payment is generally made in advance to any trees being cut.
2. Sale-By-Unit: seller is paid a certain amount for each unit of board feet cut. Payment is made as designated trees are harvested and taken to the mill.
Prepare a good contract and solicit bids from reputable companies.
(Check the link at the bottom of the page for tips on preparing contracts!)
Select the buyer and complete the timber sale contract. The successful buyer should make a deposit as a performance bond, which is held (preferably in escrow) until the sale is satisfactorily completed under the terms of the contract.
Monitor the harvest operation. Several times during the harvest of your timber, you, your agent or your forester should visit your woodlot to be sure the buyer is complying with the sales contract requirements.

Summary

Don't sell your timber to the first offer! ! ! ! !
Under many circumstances, you will be more pleased with the results of your timber sale if you seek the services of a professional forester.
Stay involved in the timber sale throughout its duration.