LandThink Blog – How do you value bare dirt in timberland?

I just read this article over on the LandThink Blog.  It has some great information about how to get at the intrinsic “dirt” value of the property that timber is growing on.  I think it is very important to remember, as with all things real estate, that location is everything.  Here is the article:

How do you value bare dirt in timberland?

By Curtis Seltzer
October 26, 2010

I have a rule against giving my time away for free, which I am trying to enforce more diligently than when I was 30 when I had more time to give away.

An appraiser called last week with a question that snagged me before I gathered my remaining wits enough to start charging. He asked: “How do you determine the bare-dirt value of timberland?”

As with so many other questions that arise as you get older, there’s no easy or simple answer.

Bare dirt doesn’t exactly have a clear definition in the field, and it is equally fuzzy when trying to put a dollar on it. So let’s say for the purpose of getting started that bare dirt refers to timberland that contains no merchantable timber value and no pre-merchantable timber value. Think of a total clear cut, down to the stumps.

How do you value bare dirt in timberland?

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