The Uniform Standards of Professional Appraiser Practice (USPAP) defines an appraisal as “the act or process of developing an opinion of value”. An opinion of value must be unbiased and supported by data extracted from comparable sales within the market area of the subject property. The appraisal of timberland involves the valuation of timber as well as the land on which it is growing. In order to accurately estimate the value of timber on a property, an experienced forester must conduct a timber cruise designed to provide a statistically sound estimate of timber volumes by product category. Once the volume of timber has been obtained, prices per unit of volume can be assigned to the various products on the tract. Timber prices vary according to product category, local markets, and timber grade and must be thoroughly researched for each appraisal since these prices tend to vary over time.
Deriving an estimate of land value for a property involves an extensive search of comparable land sales and very detailed analysis of the selected sales. Property characteristics such as location, size, accessibility, productivity, timber type and contributory value, presence of improvements, and possibly other factors must be carefully evaluated for comparison to the property being appraised. The three approaches to value, the sales comparison approach, the income approach, and the cost approach, are all considered in deriving a land value estimate for a subject property.
Henderson & Associates specializes in the appraisal of timberland and has over 35 years of appraisal experience in the valuation of land and timber. Our firm has conducted timberland appraisals for estate planning and settlement, the subdivision of an ownership, condemnation proceedings, property tax appeals, acquisition and liquidation, and damage assessments. We have worked with a variety of clients which include landowners, attorneys, lending institutions, and tax accountants. Our appraisal staff includes a state certified general appraiser and a state licensed apprentice appraiser, both of whom are registered foresters. Our experienced appraisers always ensure that the land appraisals prepared for our clients are in compliance with the Uniform Standards of Professional Appraiser Practice (USPAP).
If you are in need of an accurate and comprehensive appraisal of your timberland, please contact Henderson & Associates, Inc. in Newberry, South Carolina.