dstaples at livingston.net
Tue Dec 2 10:52:44 EST 1997
> In article <6610vk$b54 at bgtnsc03.worldnet.att.net>, "Paul Morgan"
> <t2r6 at worldnet.att.net> writes:
> >If I invest time and money to increase future wood quality and quantity and
> >the current market value of the land doesn't reflect this, I would think
> >that the root of the problem is that woodlot improvements are not valued
> The Income Capitalization Approach is just one method designed to reflect
> forest management improvements as a part of the equation. As Joe stated, large
> industrial timber owners use just these types of appraisals and make money (by
> paying foresters good money) to do this.
> Unfortunately, the smaller, private timberland owner has never heard of these
> types of appraisals and either sell through a real estate agent or on his own.
> Larry Caldwell is a unique owner that has a sense of future worth and will
> demand it in an appraisal. But I fear most property is sold without a clue to
> potential value...both positive and negative. Quite frankly, I think many
> forest consultants can't appraise a forest correctly. You need to seek out
> consultants that do this as a specialty.
Appraising is an art form, as well as a mathmaticians wet dream. Most
appraisals have a set point to achieve, either for buyer or seller. A
legitimate appraisal, by any of the methods, is only as good as the
individual that created it. On my appraisals I list a minimum of two
values, current and future projections, seldom do land owners receive
the projected values on current sales. Usually we are lucky to receive
land and timber value in a sale, as most buyers are not into anything
but comparative land prices, and if your tract is 20% higher than the
average because of timber, the sale goes else where. Anything over 10
acres is a buyers market. Indeed, many of my clients would rather have
a selective cut, remove the volume, leave a management stand, and sell
the land when it is all over. Their decision, not mine, I do the best
for them I can.
Larry has a value he thinks his property is worth, and I have the
feeling the appraisals haven't been in that range, so all appraisors are
tarred with the same brush. It is not unusual for an owner to have
greater expectations than the land will carry. Hell, my bird dog is
more valuable than any Grand Champion, to me anyway.
My Ego Stroke: http://www.livingston.net/dstaples/
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