Learning the value of a property is essential when it comes time to purchase or sell, providing the in-depth evaluations you require to make a final decision. Timber appraisals are a popular technique, examining a variety of factors and determining how they affect its worth. They offer several hard-to-beat benefits, so here’s a closer look at why you might want to consider securing such a service.

What Are Timber Appraisals?

During the appraisal, an experienced forester comes to the property and performs a thorough inspection of the trees. They’ll take into account the various outcroppings and estimate their current condition as well as the potential for growth. 

For sellers, the resulting data will reveal how much you could make and when might be the right time to sell. For those looking to purchase, the analysis will provide projections on what the property could be worth and allow you to determine how best to proceed. 

Are There Any Benefits? 

Securing a detailed appraisal as a seller will eliminate any guesswork. The detailed report includes all the necessary information, such as the number of acres, quantity of timber, and age of growth, allowing you to answer any questions that the buyer might have to complete the transaction. 

Setting up an appraisal as a buyer will reveal exactly what you’re getting into with a new property. From current access points to prior uses of the land, the report will help to finalize your plans and determine the steps to take following the purchase. 

What’s the Basic Technique?

The land management professional will approach the property from three different viewpoints – the sales comparison approach, the cost approach, and the income capitalization approach. Each examines the property’s potential and how it might best serve the buyer or seller. 

The sales comparison approach is when they evaluate comparable properties and their current market value. The cost approach estimates the amounts you’ll put into reproduction and improvements in conjunction with natural depreciation. The income capitalization approach measures the property’s earning power based on how well the owner capitalizes on its income.

If you’re interested in learning more about a particular property, reach out to Neeley Forestry Service in Camden, AR. They’re a locally owned company that has been in the business since 1972. With services that extend throughout Arkansas, Louisiana, and Texas and licensed Certified General Appraisers on staff, these professionals are ready to provide the detailed reports you require. Call (870) 836-5981 to set up a timber appraisal. Visit their website for a full list of services.