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Learning from experience can be very expensive for woodland owners when it comes to selling trees from their woodlands. Selling trees is usually once- or twice-in-a-lifetime occurrence. Years of growth and value are accumulated in mature trees, and the combined annual income from all those years is frequently marketed in a single transaction. When and how the trees are sold can influence how much money one makes, their overall financial plans, the cost of planting new trees, and other management objectives. Too much is at stake for woodland owners to sell trees without an understanding of the selling process.

The process of buying and selling trees involves a woodland owner, a timber buyer, a logger, and a mill (manufacturer). A consulting forester may also be involved in this process as a representative of the woodland owner.  The raw materials that supply the manufacturer are obtained through a network of buyers who purchase standing trees, referred to as stumpage, from private woodland owners.  Buyers can work directly for a mill, for wood suppliers, for loggers, or for timber brokers. Buyers may be paid a salary or a commission, or they may receive part of the timber brokers' profits. Timber brokers buy and resell trees, making their income from profits.  The buyer represents the interest of their employer in the sale while the woodland owner represents his or her own interest.  If the woodland owner prefers they may hirer a consulting forester to represent the woodland owner\u2019s interest in the sale.

Standing trees are sold either "per-unit" or "lump sum."  A per-unit sale is one in which the buyer and the woodland owner, or their representative, negotiate a price per unit of harvested trees, and the buyer pays for the trees after they are cut and the volume is determined. Per-unit trees are sold either by product class or at a blended average price for all products. Product classes describe the type of products that the logs can be used for.  Product classes include poles and pilings, veneer or ply-logs, sawtimber, chip-n-saw, and pulpwood. Woodland owners own per-unit trees until they are cut and payment is received. Woodland owners continue to assume most of the risks associated with owning the trees, including damage caused by acts of nature, and theft.

A lump sum sale is one in which the buyer and woodland owner agree on a total price for the standing trees within a defined area of sale, and the seller receives payment before the harvest begins. In this method the buyer, upon purchasing the standing trees, assumes the ownership risks.  Lump sum sales are often done through "sealed-bids" sales. A lump sum, sealed bid, sale is conducted in which multiple buyers participate and each buyer submits an offer for the standing trees.  The offers are submitted as sealed bids in which each buyer does not know what the other buyer is offering.  It is this competition for the trees that usually result in a higher offer than auctions or negotiated sales.

Demand for specific timber products varies widely over time and across geographic areas. Prices also vary widely. Factors such as quality, size, volume per acre, total volume, logging conditions, distance to market, accessibility, number of competing buyers and general market conditions affect the price of individual sales of standing trees. When selling trees it is important for woodland owners to seek assistance to ensure maximizing the return on their investment.

Consulting foresters, can alert landowners to favorable market conditions, evaluate the trees to determine if they are ready for sale, and handle sale transactions profitably, while protecting future value and productivity of the forest. Experts show that woodland owners who seek assistance in managing and selling trees can receive as much as 28% more for their trees than if they did not use technical assistance. In almost all cases sellers are well advised to obtain an appraisal of the volume and value of any trees prior to sale. Consulting foresters provide appraisal and marketing assistance for a fee. To verify if a forester is registered as a consultant in North Carolina, contact the North Carolina Board of Registration for Foresters at 919-847-5441 or online at http://www.ncbrf.org. Once you select a qualified forester, you should sign a contract. Include a list of services to be performed and specify who will perform them, when they will be performed, and how the forester will be paid for those services.

The North Carolina Division of Forest Resources, also called the NC Forest Service, can also provide a limited amount of free technical woodland management advice and assistance to landowners upon request. Price information and educational information regarding marketing of trees and woodland management can be found on Extension Forestry's website, http://www.ces.ncsu.edu/forestry or by contacting your local county Cooperative Extension office. Links to lists of consultants and buyers of trees are also available through the website and NC Forest Service offices.

You need not sell trees frequently to sell them successfully, but selling trees can be a mysterious and complex process. Remember that a single sale may be your only chance to cash in on the many years of annual income accumulated in a mature stand of trees.  A single mistake can result in the loss of a significant amount of your investment.  Remember that there are many variables affecting the value of trees. To increase a sellers return from woodland management, it is important that they seek professional forestry advice. For more in depth information on marketing and selling trees read the publication "Timber Sales: A Planning Guide For Landowners (AG-640)" (http://www.ces.ncsu.edu/forestry/pdf/ag/ag640.pdf)

Robert Bardon, PhD. robert_bardon@ncsu.edu, Assistant Dean of Extension and Engagement, College of Natural Resources, NC State University, Raleigh, NC.