Xterrahokie
Freshman Member
- Joined
- Jan 19, 2009
- Professional Status
- Certified General Appraiser
- State
- Virginia
Farmguy:
The first two questions I would ask you are:
1) How big is the subject property (acres)?
2) Where is it located?
My answer can vary greatly depending upon the answers to those two questions.
I would tend to say the squeeze goes onto the land side of the equation more than the timber. Timber prices are or can be a pretty established source that is more of a constant than the land side.
What I would repeat again is to make sure you look at the range of value that rural timberland is trading for within your marketplace. If the price of your cutover land plus the price of your timber is above that range then there is a good chance you've overvalued the property. But this is getting back to Question #1 -size of the property dictates the type of buyer for that property and their level of education/sophistication/motivation when it comes to buying timberland property.
Does that answer the question or make it more confusing?
The first two questions I would ask you are:
1) How big is the subject property (acres)?
2) Where is it located?
My answer can vary greatly depending upon the answers to those two questions.
I would tend to say the squeeze goes onto the land side of the equation more than the timber. Timber prices are or can be a pretty established source that is more of a constant than the land side.
What I would repeat again is to make sure you look at the range of value that rural timberland is trading for within your marketplace. If the price of your cutover land plus the price of your timber is above that range then there is a good chance you've overvalued the property. But this is getting back to Question #1 -size of the property dictates the type of buyer for that property and their level of education/sophistication/motivation when it comes to buying timberland property.
Does that answer the question or make it more confusing?