YOU SHOULD MAKE PREPARATION FOR THE POTENTIAL SALE!
First you should identify prospective buyers. It would benefit you to prepare a comprehensive list of buyers in the sale county and also include buyers in surrounding counties. Your state forester or state forestry association can help you with this. Call him for a list of buyers.
It may also be important to know what the buyer wants in terms of product. However, for the price of a postage stamp, you might simply send a bid invitation to all buyers within your determined procurement region.
Medium to large tracks of timber should be sold for a lump sum and on a bid basis. A sealed bid system should be used and generally results in higher selling prices as opposed to other sales methods. Bid invitations should be simple but informative and include the following:
...date, time, and location of the bid opening
...terms for payment
...timber product, species, and volume summary
...location map
...bid form
...information about the deposit/performance bond
...statement of seller's rights to reject bids
...notice of a "show-me" tour of sale area
The potential buyers should be given a look-and-see opportunity and most will insist on examining the timber for sale before making you an offer. A tour or "show-me" meeting on the timber sale allows all interested buyers to check the volume and quality of the timber and to estimate their logging costs. They should also be allowed to inspect and keep a copy of the contract or agreement you attach to the sale.
After the sale has been shown and all bids have been received, you should notify the highest acceptable bidder and arrange to negotiate and execute a written contract. Any deposit or performance bond agreed upon should be collected. Copies of the contract should be prepared for both buyer and seller.
Regardless of the size of the timber sale, a written contract prevents misunderstanding and protects both the buyer and seller. The contract should contain, at a minimum, the following:
...a description of the timber sale
...the selling price
...terms of payment
...which timber will and will not be cut
...time allowed to cut and remove timber
...adherence to all forestry Best Management Practices
Other special provisions may include: cutting extensions, the location of log landings, roads, and skid trails; conditions under which logging will not be permitted; protection of residual timber and other property; a procedure for settling disputes; responsibility for wildfire suppression; disposal of litter; subcontracting of parts of the work; erosion and water quality control measures; contractor liability exclusions.
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