Frequently Asked Questions
You asked and we answered!
How much does a survey normally cost?
The cost of every survey will differ depending on varying factors some of which include the conditions of terrain, the research required in the county RMC office and the size of the project. On average surveys of rural property will run on the low side .37 cents per linear foot to a high of .75 cents with average of around .55 cents per linear foot.
What does the term “marketable timber” value mean?
Marketable timber usually indicates the total dollar amount a landowner could potentially net from a commercial timber sale. These would include all timber that is of the size and quality that a saw mill or paper mill would accept delivery of.
Do trees that have just been planted have value?
Yes, from the time a seedling is planted it has value and they increase in value after each growing season. This is why it is important to hire a qualified land broker with a background in forestry that can help you determine that value; in addition, they can perform a growth and yield analysis demonstrating future value.
Where can I borrow money to buy land?
There are many lenders that will loan money on land however for the best rates and terms we recommend using land banks that are well versed in financing rural property. Some banks that specialize in this area are AG South, ArborOne, Ag Georgia and Georgia Farm Credit.
How much money will a landowner receive for a first thinning on a pine plantation?
Depending on the stumpage rate, age of timber and amount of volume being removed but on average a normal first thinning application will remove 30-40 tons per acre and at $14 per ton that is $420 -$560 per acre net to landowner.
How much does an average deep water well cost?
On average, a deep water well for potable water will cost in the $3,500.00 – 4,500.00 range. This will vary depending on depth, size of casing and size of pump installed.
How much does an average septic system cost?
Septic systems will vary depending on size of drainage field required and soil conditions can affect cost but an average is $4,000 – 5,000 for a single-family residence.
How much does it cost to run electric power to a tract of land?
The cost of electrical service will vary depending on the provider, but most providers will provide the first 300 feet free, anything over 300 feet will run $2.50/foot overhead and $4.00/foot for underground service.
What is the basis in the land I bought?
The basis in the land is determined by adding the total purchase price of the real estate plus all closing cost such as survey, attorney’s fees, commission etc. Any timber value marketable or pre-marketable should be allocated separately.
How do I know if I own the mineral rights or how do I know if I am buying mineral rights?
Mineral rights, water rights and timber rights are normally conveyed with the deed however this is not always the case especially if you are buying land where there are known minerals below the surface or water rights are historically separate as in the western US. You can determine what rights you own by having an abstractor or attorney conduct a thorough title search. If you are considering buying or selling land you need to know exactly what bundle of rights you have, a qualified real-estate attorney can help you with this.
How do I know how much timber is on the tract?
Every acre of timber value is different. Be sure you are working with a qualified land broker with experience in forestry such as an Accredited Land Consultant or consider hiring a registered forester to help you make this determination.
What is a conservation easement and how does it affect the land I am buying?
Conservation easements are an excellent tool to protect property from future development and exploitation. Most easements allow for normal or historical property usages but easements do differ, some are more restrictive than others. Ask a qualified land broker (ALC) to help or seek legal advice to answer any questions regarding easements.
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What is Agriculture exemption status mean?
Most states and counties where large land holdings are being used for timber or other Agriculture applications will provide a reduced property tax allowance. Instead of the normal tax rate if a landowner qualifies he or she can receive a significant reduction in annual property tax. Qualifications may vary depending on county and state, landowners will need to submit an application after their purchase to see if they qualify.