CALIFORNIA 



CONTENTS 



CHAPTER I The value of timber properties 

 CHAPTER II The appraisal process 

 CHAPTER III Timber property appraisal procedure 

 CHAPTER IV Determination of basic appraisal 



factors 

 CHAPTER V Operations 

 CHAPTER VI Forms 



CHAPTER VII Timber and land value schedules 

 CHAPTER VIII Timber inventory methods 



Appendix 



THE VALUE OF TIMBER PROPERTIES 



[Chapter I] 



The value of a timber property probably is 

 dependent upon a greater number of variables 

 than the value of any other class of real prop- 

 erty. Standing timber may be converted to lum- 

 ber, plywood, hardboards, and various types of 

 pulp products. The ability of forest lands to pro- 

 duce Christmas trees, split products, poles, pil- 

 ing, and fuel wood affect the price these prop- 

 erties will bring in the market. In addition to 

 the consideration of the highest and best use of 

 the timber, multiple land use for homesites, 

 commercial sites, recreation, grazing, water- 

 shed management, mineral production, and 

 many other uses must be weighed carefully to 

 arrive at a reasonable estimate of the present 

 worth of future benefits to be derived from the 

 property. Many physical factors have a direct 

 bearing on how much people in general are will- 

 ing to pay for any particular property. Stand 

 density, species, timber quality, distribution of 

 diameter classes, topography, and accessibility 

 are instrumental in determining the net return. 



A diminishing supply of available standing 

 timber has brought about extreme competition 

 between timber buyers. High unit prices for 

 stumpage may be paid to gain access because of 

 a favorable depreciation position, to eliminate 

 competition, to block in timber management 

 units, and for other reasons peculiar to a par- 

 ticular operation. 



In the harvest of timber stands, the quantity 

 of timber involved often requires a period of 

 years for the completion of an operation. Dur- 

 ing this operating period the operator is con- 

 fronted with costs which are not present in an 



1 The material included is from Assessors' Handbook — 

 The Appraisal of Timber Property, California State 

 Board of Equalization, 1965. Chapters II and VII are 

 not included. For chapters IV- VI and appendix, only the 

 contents pages are included. 



operation for immediate liquidation. These addi- 

 tional costs and the less desirable nature of 

 income to be received at some future date should 

 be reflected in the estimate of present worth. 



In giving the proper weight to all the variable 

 physical and economic factors, the timber ap- 

 praiser should bear in mind that the product of 

 his labors is an estimate of market value as it 

 pertains to a willing buyer and a willing seller. 

 The end for which his estimate may be used 

 probably will dictate the amount of time and 

 details which may be employed, but the result 

 sought is market value. 



TIMBER PROPERTY APPRAISAL 

 PROCEDURE 



[Chapter III] 



METHODS OF DETERMINING PRESENT 



MARKET VALUE FOR VARIOUS 



CLASSES OF TIMBER PROPERTIES 



While timber is considered to be land for 

 assessment purposes, a separate value must be 

 determined for both land and timber in the ap- 

 praisal process. For a given parcel, the sum of 

 land and timber values, converted to an assessed 

 value, will appear in the "land" column on the 

 assessment roll. 



Land 

 General Considerations 



Land is permanent. The amount of it is fixed. 

 It is indestructible even though its productivity 

 may be altered or even destroyed. Therefore, it 

 is basic. Almost all forest land is capable of 

 more than one use. Some forest lands are ideally 

 suited to residential or commercial use. At the 

 present time some areas of this type are being 

 held speculatively in anticipation of residential 

 and industrial expansion. 



Demand for recreational use of forest land is 

 growing. Many times, if recreational use is not 

 intensive, such use is compatible with commer- 

 cial timber growing. Intensive uses are not. It 

 is likely that those areas of forest land best 

 suited to intensive use are also the most pro- 

 ductive timber lands, but valuation should be 

 based upon highest and best use of the land. 

 Consideration should be given by the appraiser 

 to all uses to which forest lands being appraised 

 are subjected. For purposes of this manual, 



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