Appraisal

Northwest Forestry Services has completed hundreds of appraisals of timber, reproduction, and/or forestland.  For most properties, nwfs also completes the timber cruise upon which the appraisal is based.  In addition to the economic analysis, the typical appraisal report includes much of the same information as an inventory report. 


download a sample appraisal report.

a typical appraisal report contains the following items:

 

General Overview

  • client
  • intended users and intended use (e.g., to determine a sale price for the timber, to provide a value for estate tax purposes, etc.)
  • effective date of the appraisal
  • type of value (fair market value, value of property based on current use, etc.)
  • PROPERTY APPRAISED (MERCHANTABLE TIMBER, PRE-MERCHANTABLE TIMBER, FORESTLAND)
  • Purpose – Reason for the report (e.g., to estimate current market value of merchantable timber)
  • Scope – Type and extent of research required for the assignment
  • hypothetical conditions AND/or extraordinary assumptions

 

Description of Property

  • Maps and Aerial Photographs
  • Location and Access
  • Boundary Markings
  • Topography as it relates to logging operability
  • Timber Stands and Other Cover Types
  • site quality for growing trees, usually expressed as a site index
  • legal and physical limitations on timber harvest

 

Timber Inventory Data - DESCRIBES INVENTORY METHODS AND RESULTS.  tHIS SECTION IS SIMILAR TO THAT USED IN A FOREST INVENTORY REPORT.

 

Description of APPRAISAL Methods AND DATA - THE APPRAISAL METHODS ARE EXPLAINED.  THE FOLLOWING DATA THEN ARE COMPILED:

  • LOCAL TIMBER MARKETS
  • TIMBER MARKET TRENDS
  • DELIVERED LOG PRICES
  • Logging COSTS
  • Hauling COSTS
  • Road Construction AND MAINTENANCE COSTS
  • SITE CLEANUP COSTS
  • Administrative EXPENSES
  • Harvest Taxes
  • SITE PREPARATION AND Reforestation COSTS
  • ALLOWANCE FOR Profit and Risk
  • POTENTIAL HARVEST DELAYS DUE TO LEGAL OR OTHER CONSIDERATIONS
  • OTHER POTENTIAL REVENUES OR COSTS

 

FINAL VALUE ESTIMATE - tHE ABOVE DATA THEN ARE ANALYZED TO DEVELOP A FINAL VALUE ESTIMATE.  THE REPORT SHOWS ALL CALCULATIONS USED TO DEVELOP THE ESTIMATE.

 

 
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