07/04/2021
WE DONE IT AGAIN! Our most recent sale was a surprise to everyone, including us. We received four bids altogether with three of those bids ranging from $22,100 to $26,020. The fourth bid came in at $39,200, over $13,000 higher than the 2nd bid.
Usually when we see bids as close as the bottom three, it tends to indicate the average selling price for the timber being sold. But we have found that when you bid out the timber, you tend to get a premium on that price more often than not. It should be noted that the 2nd bidder had bought several sales on this particular property, often at a premium over others also.
So why did the top bidder pay so much more? Maybe they’re low on inventory, or have an insight on a market the rest of us don’t, or felt the timber quality was better than average or could harvest the tract more cheaply than the others. Who knows! What we do know is you have a better chance of getting a premium price through our sealed-bid, lump-sum, cash-in-advance system of selling trees.
