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Submitted by: Samson Muric
Some companies grow their own timber for their products, other companies buy the trees completely cut from lumber mills, yet still others fit someplace in the middle. They try to make use of timber sales to get their timber without needing to grow them or pay the extra of having them processed by a timber mill. This is the type of deal we will be examining.
For any small time woods grower, timber sales may take place once or twice in their life times and so they must make the very best of it. How it works will be as follows:
The woods cultivator grows the trees and also will keep them growing with the appropriate shape and to the correct age.
Once the tree cultivator decides that the trees are old enough and abundant enough, he may either harvest them himself, or advertise timber sales.
Potential purchasers can make a trip to the location and look at as well as assess the timber and then make a proposal.
The buyer and seller arrive at an agreement on selling price and a deal is signed.
The buyer is then free to be able to bring equipment on the property to harvest the trees. However, he has only bought the legal rights to the wood, not the land itself.
When the trees are removed, the seller can easily replant the region and then wait for the following harvest to develop fully.
In order for the vendor to get the most value out of the timber sales, this individual should know what he is looking at with regard to the wood on his property. In the event that he has only got a hazy idea of what the timber is worth, then he should definitely find a professional to help him assess the timber. There are usually poel around who make a living by brokering timber sales so they really would be the right individuals to ask for help in this area. It might not even be a bad idea to get them to broker the actual timber sales in any case, in order to be certain everything is done correctly.
The most vital suggestion, is to not accept the very first offer made. Leave the timber on the market long enough to obtain more than a single offer. Tyr and get as many as 4 or 5. This should help you get an idea of just what the timber is worth as well. There might be some negotiation involved, so be ready to be stubborn and get what you timber is worth.
Make sure the deal is watertight. It might be worth while getting it put together by a legal professional to ensure that neither party will be diddled in the signing of the deal. Also ensure there is a time limit clause within the contract for the buyer to get the timber out. Or else they are within their rights to stay on your property harvesting timber until the cows come home.
Making timber sales can be a tricky business as they can be multi-million dollar deals, depending on the type of tree on the land. Make sure you get what they are worth and request help from the professionals if you are unclear about anything.
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