Today, hardwood lumber and timber prices fluctuate dramatically.
Unless you keep up with the market on a weekly or monthly basis,
you should not attempt to sell your own timber. Over and over again I hear stories of timber owners selling $75,000 of
timber for $10,000 while thinking they did great because they didn’t have to “pay a forester 10% to mark it.”
Most of the time these stories come from land owners who have sold their timber before and did not realize the value
increase in their stands. Some of the stories involve hundreds of thousands of dollars.
Why would you sell an investment without the help of someone who knows the market and is working for you?
Remember, the timber buyer knows the market. He is NOT working for you. He is there to make the most money for his mill.
He is not bad for doing this, he is just doing his job. His job is to make the most money for himself or his employer.
He is not working for you.
Selling timber can be a complex issue. However, the relationship between a buyer and the timber owner can be an
enjoyable one. All forms of trees, large or small, can be cut and sold. As a timber owner, you need to be aware of what
is best for you financially and for your timber as a growing crop. Some lumber companies have markets for small logs and
will want to cut your timber to a smaller diameter. Cutting to a certain diameter (14” inches for example) is a diameter
cut. Even though this is the most common practice, it is not what you should be doing to maximize the income and growth
potential from your timber. Timber owners often become confused by multiple buyers making different offers not knowing
whether the buyer is taking the trees by “diameter breast height” or diameter on the stump. The difference between stands
after a stump cut verses a breast height cut is dramatic! Even though a buyer may offer to take your small timber now,
by waiting 5 – 10 years you can double or triple the amount you receive and take less timber while you are doing it.
When dealing in timber, there are big variables in purchase offers. The difference between offers can amount to tens of
thousands of dollars even on a small piece of timber. It is not always the local lumber mill that can pay the most for
your timber, but the mill who has the best markets for the type of timber you have. The same lumber company may offer
more for your timber than for your neighbors’ because of the species, size or quality of the timber.
Our system of sealed competitive bids assures that you will be cutting the timber that is best for you while
selling it to the buyer who has the best markets for your timber species, size and quality.
I receive my payment by commission on your sale. We work hard for you to get the top dollar for the timber you
choose to sell.
My commission is earned by:
1. Higher bids from marketing to a wide area.
We usually send between 60 and 100 prospectuses for a sale, not just to four or five mills.
2. Developing a contract that protects your interest through the logging operations and clean-up.
3. Consulting with you to review the options (yes, every stand has options) for your timber stand, both financially and as an agricultural crop.
Give me a call and I will be glad to look at your timber stand and discuss your needs.