How to sell timber: contract, cruise and bids

A timber sale succeeds or fails on the preparation. Sellers who measure first, invite competition, and put the deal in writing tend to do far better than sellers who take the first offer and trust a verbal promise. This page walks through the process and the timber sale contract in plain language.

How selling timber works

Measure what you have. Get a timber cruise or mark the trees so you know the species mix and the volume. Never sell blind.
Decide how to sell. Choose between a negotiated sale to one buyer, a sealed-bid sale run for you, and a lump-sum versus per-unit price.
Choose your advisor. Decide whether to hire a consulting forester to run the sale or deal directly with buyers. Both can work; know who is working for whom.
Invite competing bids. Put your tract in front of several buyers at once so they bid against each other instead of you accepting the first number.
Compare offers on equal terms. Match the units, the payment schedule, the harvest window and who does what before you compare the headline price.
Sign a written contract. Cover the price, boundaries, payment, security, harvest period, road use, cleanup and liability before any cutting starts.

Start with the trees, not the buyer

The most expensive mistake is selling before you know what you have. A timber cruise measures volume and quality by sampling the tract and scaling up. A forester can cruise and mark the trees, and you can then estimate a value with the timber value calculator. Knowing your own number changes the whole negotiation, because you can tell a low offer from a fair one.

If you have not priced the wood yet, read how timber prices per acre are set first. It explains the units and the market so the bids make sense.

Consulting forester versus selling to a buyer

There is no single right answer, but there is a clear difference in whose interest each one serves.

A consulting forester

Works for you. Can cruise and mark the timber, advertise it, run a sealed-bid sale, and supervise the harvest. Commonly paid a commission or a fee — ask which, and how much, up front.

Selling directly to a buyer

Can be simpler and faster, and may suit a small or low-volume job. But the buyer's job is to buy low, so you have to do the homework your side would otherwise get from an advisor.

For higher-value or larger tracts, the cost of professional representation is often repaid by the difference in bids. For a few trees, a direct sale may be the practical choice. Either way, get more than one offer.

Contract types: lump sum and per unit

Lump sum (or sealed bid). The buyer bids one price for the marked timber as-is. Simple and predictable for the landowner, with no surprise about the total — but you need enough volume information to know the bid is fair.
Per unit. The buyer pays for each unit actually harvested and scaled, such as per ton or per board foot. This can pay more when volumes are uncertain, but it relies on accurate scaling and a buyer who honours it. It also needs a clear payment schedule.

Ask which type each bid is. A per-unit bid and a lump-sum bid are not comparable until you convert them.

What the timber sale contract should cover

This is general guidance, not legal advice. For a large or complex sale, have a lawyer or a consulting forester review the contract. At a minimum, a written contract should address:

The parties and the land. Correct names, and the property described clearly, with a map if possible.
The timber. Species, marked or described trees, and the boundaries of the sale area.
Price and basis. Lump sum or per unit, the unit of measure, and the rate.
Payment. How much, when, and what is held back until the work is done.
Security. A performance bond or deposit, where appropriate, so the buyer has something at stake.
Harvest period. Start and end dates, and weather or seasonal limits.
Roads and access. Who builds, uses, maintains and repairs them, and who owns any new road afterward.
Best practices. Stream buffers, erosion control and site conditions the buyer must respect.
Damage and cleanup. What happens to fences, crops, residual trees and slash.
Liability and insurance. Who carries worker and liability cover while the buyer is on your land.
Default and disputes. What happens if the buyer stops paying or breaches, and how disputes are resolved.
Reserved trees. Any trees you keep — for shade, wildlife, or a future harvest.

Never let cutting start before the contract is signed and the first payment or security is in place. Once trees are down, the negotiation is over.

Get bids before you sign

The best defence against a low offer is a second offer. Put your tract in front of several buyers, compare them on the same units and terms, and let them compete. That is the whole purpose of the bid request page, and it costs nothing to ask.

Ready to see what buyers will offer?

Send your tract details and let local buyers compete for it before you sign anything. Email hello@logmytrees.com or use the form on the home page.

Request competing bids

Selling timber: common questions

What should a timber sale contract include?

A written timber sale contract should name the parties, describe the timber and the boundaries, state the price and whether it is lump-sum or by unit, set the payment schedule, require security such as a performance bond where appropriate, define the harvest period, and cover road use, cleanup, liability, insurance and what happens if the buyer defaults.

Do I need a timber sale contract, or is a handshake enough?

Use a written contract. Timber is cut once and cannot be put back. A written contract protects your price, your boundaries and your land, and it gives both sides a clear record of what was agreed.

Should I use a consulting forester or sell directly to a buyer?

A consulting forester works for you, can cruise and mark the timber, and often runs a sealed-bid sale to get competing offers. Selling directly to a buyer can be simpler and faster for a small or low-volume job, but remember the buyer is working for the buyer. Match the approach to the value at stake.

How is a consulting forester paid?

Commonly by a commission on the sale or a flat fee, and sometimes a mix. Ask up front who pays, how much, and what the forester will do for it. Get the arrangement in writing.

What is the difference between a lump-sum and a per-unit sale?

In a lump-sum sale the buyer pays one set price for the marked timber regardless of what is cut. In a per-unit sale the buyer pays for each unit actually harvested and scaled. Lump sum is simpler; per unit can pay more if volumes are uncertain, but it needs good measurement and trust.

When should I get bids?

Before you sign anything. Get competing bids as early as possible, once you have some idea of your volume, and use them to test the offer in front of you. A single offer is not a market.

General information only — not legal, tax, forestry or financial advice. Timber sale contracts and local rules vary. Have a lawyer or a consulting forester review the contract for your sale, and confirm tax treatment with a qualified tax professional.