Selling trees on property to tree service
#1
05-24-22, 08:15 AM
Selling trees on property to tree service
A local tree service company has been here and walked my 8 acre property at least 2x and given me a quote. He's returning Thurs. am with a contract for me to sign.
He stated they will write me a check prior to cutting the trees for the contracted price.
Is this standard procedure? I'm in NW lower Michgian and have over 6,000 acres of state land immediately behind my property. They have the contract with the state to harvest a pine forest in a section immediately behind me and will have all their equipment here at that time, approx. July.
They are only taking the trees with poor form, poor health and taking better quality trees as density allows and all beech & aspen (bc there's a disease on those trees in this region).
Is it standard to pay in advance? Thank You!
He stated they will write me a check prior to cutting the trees for the contracted price.
Is this standard procedure? I'm in NW lower Michgian and have over 6,000 acres of state land immediately behind my property. They have the contract with the state to harvest a pine forest in a section immediately behind me and will have all their equipment here at that time, approx. July.
They are only taking the trees with poor form, poor health and taking better quality trees as density allows and all beech & aspen (bc there's a disease on those trees in this region).
Is it standard to pay in advance? Thank You!
#2
05-24-22, 10:12 AM
Group Moderator
Everything is negotiable. It's a rather sleezy business so you need to make sure you understand everything in your contract. Do not rely on what the person say, and focus on the written contract.
Here in NC it is more common to get paid after the trees are harvested depending on exactly how much is taken but they can pay up front. I assume the price is better to get get paid after since getting paid up front is more risky for the logging company. Your property is rather small but for larger pieces it's often a good idea to hire a logging consultant to negotiate on your benefit. They do their own tree survey and provide a estimate of it's worth and can even supervise the harvest to make sure you are paid for everything.
Are you clear on what they will harvest and what they leave?
Who performs and pays for the land survey?
What roads and access ways will be created?
Will the property be re-planted included in the contract or is that your expense?
Do you need a permit? Do you need a permit if you don't replant?
Here in NC it is more common to get paid after the trees are harvested depending on exactly how much is taken but they can pay up front. I assume the price is better to get get paid after since getting paid up front is more risky for the logging company. Your property is rather small but for larger pieces it's often a good idea to hire a logging consultant to negotiate on your benefit. They do their own tree survey and provide a estimate of it's worth and can even supervise the harvest to make sure you are paid for everything.
Are you clear on what they will harvest and what they leave?
Who performs and pays for the land survey?
What roads and access ways will be created?
Will the property be re-planted included in the contract or is that your expense?
Do you need a permit? Do you need a permit if you don't replant?
#3
05-24-22, 01:42 PM
Group Moderator
Make sure the contract is very specific about what will be taken and what will remain. After that, it wouldn't hurt to keep an eye out when they're cutting - I had a buddy do something like this and a lot more trees were taken than originally agreed upon.
#4
05-24-22, 01:58 PM
Member
An acquaintance of mine had a woodlot in Maine. Someone approached him and offered to pay for his "stumpage". Being a city slicker he thought it was an offer to remove the stumps after trees were cut down and removed. He asked around and found out it meant harvesting the trees and leaving the stumps behind. Do your research!
#5
05-24-22, 06:31 PM
I have limited knowledge but it is common here in the south. I know a couple of people who have sold their timber & it left behind a mess.
As noted above, you've go to be knowledgeable in how that industry works & the pros & cons associated with it.
They'll quote you a nice price for the timber, but as noted they'll only take the profitable stuff & leave the trash behind. Stumps, tree tops, ruts, etc, etc. Now, if you want it cleaned up, they'll pay you less because it costs them more work and $.
If you want the ruts filled in, they'll pay you less because it costs them $.
If you want the stumps removed... they pay you less, because it costs them $
The ruts & the mess they leave behind will hold water & not drain properly. If you want it cleaned up... you'll probably have to pay them to sell the timber.
The less they do, the more mess you're gonna have left behind. The more they do, the less you're gonna get paid.
I'm not saying its a bad deal, but just know what you expect at the end of the day. Know what you want & what they are offering.
Again, its not something that I know a lot about, so I'd need someone more knowledgeable than me to help me & guide me through this process before I signed anything. Maybe have your real estate attorney help you or send you to a professional that can guide you.
As noted above, you've go to be knowledgeable in how that industry works & the pros & cons associated with it.
They'll quote you a nice price for the timber, but as noted they'll only take the profitable stuff & leave the trash behind. Stumps, tree tops, ruts, etc, etc. Now, if you want it cleaned up, they'll pay you less because it costs them more work and $.
If you want the ruts filled in, they'll pay you less because it costs them $.
If you want the stumps removed... they pay you less, because it costs them $
The ruts & the mess they leave behind will hold water & not drain properly. If you want it cleaned up... you'll probably have to pay them to sell the timber.
The less they do, the more mess you're gonna have left behind. The more they do, the less you're gonna get paid.
I'm not saying its a bad deal, but just know what you expect at the end of the day. Know what you want & what they are offering.
Again, its not something that I know a lot about, so I'd need someone more knowledgeable than me to help me & guide me through this process before I signed anything. Maybe have your real estate attorney help you or send you to a professional that can guide you.
marksr
voted this post useful.
#6
05-24-22, 08:18 PM
Don't know the industry but I'd think having them mark the trees so you know what will be taken would be advisable? Probably could set a minimum DBH that have to be marked so they/you don't have to worry about all the nuisance trees.
#7
05-25-22, 05:03 AM
Group Moderator
What is DBH?
In most cases they do not "mark" trees for harvest. They usually flag trees along the perimeter so they know where to stop then harvest inside that perimeter, leaving what they don't want. Unless you have particularly valuable trees that are being selectively harvested nobody walks the entire property marking trees for cutting. It's just too much labor.
In most cases they do not "mark" trees for harvest. They usually flag trees along the perimeter so they know where to stop then harvest inside that perimeter, leaving what they don't want. Unless you have particularly valuable trees that are being selectively harvested nobody walks the entire property marking trees for cutting. It's just too much labor.
#8
05-25-22, 08:11 AM
DBH = Diameter at Breast Height
It is how all trees are measured for whatever is going to be done to them. FS marked all the trees on my lot (on USFS property) at our cabin that were to be harvested for thinning by a local contractor. Trees below a certain DBH were not marked and were fair game.
It is how all trees are measured for whatever is going to be done to them. FS marked all the trees on my lot (on USFS property) at our cabin that were to be harvested for thinning by a local contractor. Trees below a certain DBH were not marked and were fair game.
