We prepared the timber sale by making an intensive cruise of the timber, which showed a little more timber than our original estimate. We then marketed it in our usual manner and on the bid date we received a total of over $1,000,000 for the timber.
Our clients were very fortunate. Not just by inheriting a nice tract of timberland, but this was a very high risk tract. The timber was very old and slow growing, making it extremely vulnerable. They had not had any major damage from the hurricanes of recent years, nor any other major storm, fire or pine beetle damage. Considering the risk potential, they were incredibly lucky!
In essence, they had a million dollar investment producing no return and subject to enormous risks. No prudent investor would accept such a situation. However, timber is very difficult to evaluate and the average person can easily overlook a situation like this. What is the current situation on your timberland?
Reprinted from "Forest Management News" Spring 2002, Volume 22 Number 1, published by Timber Marketing & Management of the Carolinas, Inc.