Friday, May 09, 2008
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fountains real estate
Specializing in the sale of forestland and rural estates. 

Buyer's Guide

This page is intended to help buyers understand the various types of real estate acreage offered for sale by fountains as well as provide some general buying tips.

Types of Properties - fountain markets three general property types which include
  • Large to medium sized timberland investment properties for sale
  • Medium to small sized multiple use properties for sale
  • Easement protected timberland for sale

Large to medium sized timberland properties for sale generally lie in remote locations, distant from town services and may possess limited Highest and Best Use (HBU) options. HBU is a measure of potential uses a property has beyond traditional timberland uses. These properties are generally purchased as long term timberland investments where the Capital Timber Value (CTV) drives the investment over the long term. CTV is the net standing timber value to the landowner of all trees 7-8” and greater (measured at breast height). Portions of this net timber value are available for harvest depending on various forest conditions and landowner goals. Over the long term, CTV increases in value at fairly consistent rates depending on species composition, quality and age (see Investing link for more detail). These properties for sale often possess other use opportunity which include; recreation land use, hunting land use, camp (possibly home construction), limited sub-division and personal enjoyment.

Medium to small sized multiple use properties for sale are often located closer to both populated areas and town services such as maintained roads and electric power. HBU options are generally broader providing buyers multiple purchase options. These properties for sale are often purchased as general real estate investments, potential home site scenarios, short term sub-division potential, timber investments and recreation properties. Although CTV plays a part of the purchase price, it usually contributes below 75% and at times well below 50%. Price for such properties for sale vary depending upon location, sub-division opportunity, timber resource, and site specific features such as streams, open fields and view shed.

Easement protected timberland for sale is fairly new to the open land for sale market with acreage sales traditionally between corporate and non profit ownerships. Generally, development and commercial rights are held by a third party conservation group with the landowner retaining rights for timber harvesting under a pre-approved management plan. Often, a camp and sub-division right(s) run with title. These properties for sale are purchased primarily for long term timberland investments with a sub-component of recreation. HBU potential is very limited.

An Acquisition Guide and other helpful documents can be viewed by clicking on the Buyer Information Link on the right.

fountain Acting as Buyer's Agent:
On special occasions, the fountain team will act as a buyer’s agent working directly for a buyer in pursuit of a specific property for sale. This is traditionally the case when a buyer requests our expertise in pursuing a timberland property for sale listed with another broker or when a buyer has identified a specific non-fountain property for sale and hires us to represent their interests through the purchase process. Please feel free to contact us for more information about buyer broker arrangements.

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