Timberland Valuation: A Practical Overview Seminar | Livestream
The Forestry Valuation course is intended to give participants a practical guide for valuing forestland properties. The course discusses how to determine whether forestry is the highest and best use of a rural property, and explains how foresters and appraisers may need to work together to complete an assignment competently.
Appraisal fundamental concepts are discussed, with basic information about real estate, and specific considerations for how timberland differs from other types of real estate in a valuation framework. Fundamental concepts of forestry are also introduced. The student will learn how foresters estimate standing timber volume, how timber volume can be predicted through time, and gain a thorough understanding of timber markets and points of sale. The difference between stumpage prices and delivered prices, and the market disconnect between timber prices vs. lumber prices are also covered and explained.
The course explains how to value standing timber, and illustrates the difference between gross timber value and contributory timber value. Valuing pre-merchantable timber is also covered, with the course teaching three methods for valuing timber that is too small for commercial uses. Allocating comparable sales prices between timber and land is included in this section.
All three approaches to value are covered, with a case study used to illustrate concepts. In the Sales Comparison Approach, students will learn how to separately adjust allocated land values for the elements of comparison, and timber values for differences in timber markets. In the Cost Approach, the student will apply the concept of valuing standing timber and pre-merchantable timber to arrive at a value estimate.
Much time will be spent on the Income Approach, as it is the most applicable approach to timberland properties. The course covers Land Expectation Value, and how to apply it. It also builds a complete Discounted Cash Flow, using the case study, to demonstrate how to apply growth and yield projections to a subject property's timber stands, how to estimate a reversion, and how to project other costs. Importantly, the course demonstrates how to extract a market discount rate from comparable transactions, by leveraging the concepts applied to the subject property's stands.
Note: A Zoom invitation will be sent to all registrants prior to the event. If you have not received your Zoom Registration link 24 hours prior to the event, please contact us at email@example.com
Start Times:7:00 AM Pacific8:00 AM Mountain9:00 AM Central
10:00 AM Eastern
Contact with Questions: Deanna Ilk | 303-392-1222 | firstname.lastname@example.org