Value of trees on property

<<>> The other day I appraised a home that is located on five acres. The manufactured home and the lot are zoned residential. Three quarters of the lot is covered in mature pine and Douglas fir trees. The owner loves the trees and talked about the value of the trees on the property. He talked to me about how much money the trees are worth if he would allow them to be harvested.

While these types of trees have significant value if they were harvested, they will have little value for the purposes of an appraisal. The reason why is because the land will be valued for residential use. The appraiser will look at all of the land sales in the area and select the best lots available.

In some cases lots with mature trees will be of more value, but in other cases a blend of trees or more grass is more valuable. In other words, it depends. In most cases, you’ll find that too many trees will be a distraction and possibly an expensive cost to remove the trees to construct a new outbuilding or separate garage. In some other cases, the owner just likes more light or does not want a tree to blow down during a wind storm. Most of the time, buyers will want a blend of open areas and trees.

My suggestion is if you have a lot that offers harvestable trees, consider harvesting the trees before you sell the property. As long as you don’t ruin the land by leaving stumps throughout the property and you construct a road to a building site and harvest the trees to improve the appearance of the property, you have a higher probability of making more money. This is because the value in the trees is being calculated via a different use and a different function than the value of the trees as used for residential use.

On the contrary, if you are selling a grassy lot with no trees, don’t plant any trees on the property, as retail trees will not increase the value of the lot and in most cases, you will lose money. So, the value of trees on your property will not increase the value for residential value in most cases.