Foresters Can Valuate and Sell Lumber!
- Author Christopher Hunter
- Published August 25, 2011
- Word count 709
Selling lumber can be very complicated. Before it can be successfully sold, decisions need to be made as to exactly how it will be sold. Selling cut trees can be done in two ways: selling it personally or selling it with the help of a professional forester. Choosing to sell the lumber personally requires a great deal of expertise since making any mistake in marketing the wood could be quite expensive.
Asking for professional assistance from foresters may be more helpful for many reasons: they can handle getting price quotes; offer their knowledge on what kind of trees should be harvested; advise what type of forestry trucks to use; advise how many trees should be harvested; and price the value of the harvested trees. In addition, using the services of a professional can ensure that the remaining land after the harvest will still be productive in the future.
Ask For Assistance
Practically speaking, determining the estimated value of timber is extremely difficult. Doing it alone may mean taking a big risk, so it is important to contact the nearest state forestry service to request their help in the selling process. They can offer free assistance from professionals in the industry.
Benefits of Using a Professional
• Assessment Capability - Buyers want to know the type and the volume of lumber that is available for bidding. A forester can be of assistance in conducting an assessment to determine the estimated volume and value of timber available for harvest.
• Knowledge of the Market - Foresters know the current value of standing timber and trends of market prices in certain regions. The price of the lumber is dependent on the local market conditions.
Importance of Knowledge
Knowledge is vital for gaining greater profits in this industry. It is invaluable to know the kind of timber that is being sold because every standing tree has a different market value. The stumpage value relies on the species, quality, size, volume and distance from the market. Being educated in these areas will help ensure that an appraisal is correct and that the lumber ends up being sold for a profitable price. Timing is also important in selling lumber. If the demand is higher, the timber might command a higher price.
Buyers and Bidding
The next vital step in selling lumber is to look for potential buyers. The best way to look for potential buyers is to get a list from the State Forestry Department. After obtaining a list of possible buyers, a bid invitation can be sent which contains the date, time, location, terms of payment, product details, species, volume, bid form, deposit agreement, hard copy of seller’s right to refuse bids and a ‘show-me tour’ notice.
Once the bidding process is complete, and the highest bidder has been identified, negotiations will follow and a written contract will be executed. A deposit bond will then be collected as agreed upon by the seller and buyer; copies of the written contract will be distributed to avoid confusion and mistakes. The written agreement should include: the description, price, and terms of payment; timber to be cut; scheduled date to cut the timber; and guidelines in Best Management Practices.
To ensure compliance with the agreement, the landowner should visit and inspect the cut site to ascertain that the correct trees have been harvested. It will most likely require travel in some type of forestry truck over rough terrain in order to be present during the tree harvesting process. Once the trees have been harvested, it is important that the owner comprehend the importance of re-forestation management in order to preserve the land for future use.
Selling lumber is not an easy task and studies reflect that tree vendors can expect more profitability when hiring a professional consultant to assist in the selling process. Additionally, using a professional will ensure that the remaining land will be preserved after the current trees have been harvested and will be more productive for the next cycle of forest harvesting. These professionals know how to use the proper equipment to cut the trees and preserve the land for future use. Using these experts to help in the process allows an owner to evaluate and sell their lumber in a profitable way!
Christopher M. Hunter is an expert in commercial specialty trucks. To find out more about Forestry Trucks, go to the main website at: http://www.firstfleettrucksales.com/home.Article source: http://articlebiz.com
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