At some point or another timberland owners will most likely need an appraisal. As part of our full line of services provided, Neeley Forestry has three appraisers on staff (2 certified general appraisers and 1 state registered) to help you with your timber or timberland appraisal needs. Individuals who are not regularly keeping up with timber and land prices are often surprised at what a particular tract of land may be worth. Some reasons to get an appraisal may include:
- Establishment of basis. When you sale timber or land, it’s very helpful to have a good record of you basis. Your basis will help determine your tax liability.
- For estate planning and/or estate tax liability. If you are looking to gift or will your property to someone, you can significantly reduce tax liability for the new owner. Proper planning starts with an appraisal.
- Value estimates for collateral on mortgages. At Neeley Forestry Service, Inc., a significant amount of our appraisal work is for banks looking to provide a loan to help someone buy property or borrow against it.
- For purchasing or selling of timber or land. Its smart to know what a particular tract of land may bring in the market so that you do not pay too much or take too little for it.
- Division of property. Often when there are multiple owners in a property, there are conflicts between the parties’ management goals and objective. When the parties wish to divide the property and pursue their individual goals, an appraisal is usually necessary.
Neeley Forestry Service also offers financial analysis. In performing a financial analysis, growth and yield models are used to help determine the time and amount of cash flow from a property. The cash flows are then used to calculate a rate of return. The rate of return and the timing of the cash flows help determine if the property is a desirable investment for the individual. |
