Title: How to Sell Timber: Cruises, Bids, and Contracts in NC | FOUND Description: How to sell timber in North Carolina: hire a consulting forester, cruise the stand, take sealed bids, sign a written contract, and follow the harvest rules. Canonical: https://lotsfound.com/insights/how-to-sell-timber/ # How to sell timber: cruises, bids, and the timber contract You sell timber by having a registered consulting forester cruise the stand, offering it to several buyers by sealed bid or negotiation, and signing a written timber contract that an attorney prepares or approves. The harvest must follow the state water quality rules, and the income is taxed under federal timber rules. [Talk about your land](/who-we-serve/landowners/) In this article 1. [How to sell timber, in order](#how-to-sell-timber-in-order) 2. [Hire a consulting forester](#hire-a-consulting-forester) 3. [The timber cruise](#the-timber-cruise) 4. [Sealed bid or negotiated sale](#sealed-bid-or-negotiated-sale) 5. [What the timber contract covers](#what-the-timber-contract-covers) 6. [Water quality rules on the harvest](#water-quality-rules-on-the-harvest) 7. [Taxes on a timber sale](#taxes-on-a-timber-sale) 8. [If you may develop or sell the land later](#if-you-may-develop-or-sell-the-land-later) 9. [Key recap](#key-recap) 10. [Questions](#questions) 11. [References](#references) > **Quick summary:** This guide walks a North Carolina landowner through a timber sale, from the first call to the tax return. It is for owners who plan to sell standing timber, not the land. Hire a registered consulting forester, get competing bids, and sign a written contract before any tree is cut. ## How to sell timber, in order You sell timber in seven steps, and the order protects the price and the land. 1. Confirm who owns the land and the timber. Every co-owner must agree to the sale. 2. Have a licensed land surveyor find and mark the boundary. 3. Hire a registered consulting forester. 4. Have the forester cruise the timber and write a preharvest plan. 5. Offer the timber to several buyers by sealed bid, or negotiate when the stand calls for it. 6. Sign a written timber contract or timber deed that an attorney prepares or approves, and record it. 7. Watch the harvest, check the water quality measures, and plan the new forest. The [North Carolina Forest Service](https://www.ncagr.gov/divisions/nc-forest-service/managing-your-forest/selling-your-timber) states the core rule directly: never sell timber without a written timber sale agreement. This page covers a sale of trees. A sale of the land itself is in [Selling farm or timber land for development](/insights/selling-farm-or-timber-land-for-development/). ## Hire a consulting forester A consulting forester is a registered forester who works for the landowner on a fee, contract, or contingency basis. Under [state law](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_89B/GS_89B-2.html), a consulting forester must be competent in forest appraisal and marketing, avoid conflicts of interest, and file an affidavit with the board each year. The [North Carolina State Board of Registration for Foresters](https://www.ncbrf.nc.gov/) registers anyone who uses the title forester. The forester works for you, and the timber buyer does not. Ask several foresters about their services, references, and fees. Sign a written agreement that lists the services and the cost. **The boundary is a separate job.** The Forest Service notes that foresters may not establish boundary lines, and that only a registered land surveyor can do this ([preharvest planning guidance](https://www.ncagr.gov/divisions/nc-forest-service/managing-your-forest/preharvest-planning)). If you need the line found first, see [How to find property lines](/insights/how-to-find-property-lines/). ## The timber cruise A timber cruise is an inspection of the stand to estimate the volume of merchantable timber. On most tracts the forester measures a systematic sample of trees on plots or strips. On high-value stands the forester may measure every merchantable tree. The method is described in the NC State Extension [timber sales planning guide](https://content.ces.ncsu.edu/timber-sales-a-planning-guide-for-landowners). The forester records two measurements on each tree. The first is the diameter at 4.5 feet above the ground, called diameter at breast height. The second is the merchantable height. Those numbers become volume by species and product class, for example pulpwood, chip-n-saw, and sawtimber. The cruise report is your basis for a minimum price. ## Sealed bid or negotiated sale Most sales use one of two methods to find a buyer, and one of two methods to set the price. ### How you find the buyer **Sealed bid.** The forester sends an invitation to bid to the buyers in the area, with maps, volumes, and contract terms. The planning guide says research shows sealed bids usually bring a higher offer than auctions or negotiated sales. It also advises at least a month for buyers to cruise the stand, a minimum bid that buyers do not see, and the right to refuse every bid. **Negotiated sale.** You negotiate with one buyer. Small tracts, low volumes, poor timber, or poor access can call for this method. If you sell without a forester, the Forest Service recommends at least three bids on a clearly defined boundary. ### How you set the price **Lump sum.** The buyer pays one total price for the timber in a defined area before the harvest begins. The buyer then carries the risk of storm, fire, and theft. **Per unit.** The buyer pays a price per unit of wood after it is cut and measured, usually from mill scale tickets. You keep the ownership risk until the timber is cut and paid for. You also need a way to check the measurements. > **The short version:** The cruise tells you what you have. Competing bids tell you what it is worth. The written contract decides what you keep, including your roads, your streams, and your neighbor's trees. ## What the timber contract covers A timber contract or timber deed sets the rights and duties of the seller and the buyer. The Forest Service leaflet [Timber sale contract considerations](https://www.ncagr.gov/divisions/nc-forest-service/FM03/open) says the contract should be prepared or approved by an attorney. It lists the terms to cover: - **Dates.** The start date, the termination date, and any extension. - **Area.** A legal description and a map of the harvest area, with streams, roads, and fields. - **Access.** Where the buyer enters and leaves, and who repairs roads, gates, culverts, and fences. - **Harvest method and volume.** Clearcut, thinning, or select harvest, and how trees are marked. - **Price and payment.** Lump sum or per unit, when payment is due, and the documents that support each payment. - **Water quality.** The streams and wetlands on the tract, the streamside management zones, and who stabilizes the site after the harvest. - **Damage and insurance.** How damage outside the harvest area is settled, any performance bond, and proof of the buyer's liability insurance. Standing timber is real property in North Carolina, and the leaflet advises that the timber deed or contract be recorded at the county courthouse. **Mark the line before the cut.** A person who cuts timber on another's land without consent is liable for triple its value under [the timber trespass statute](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_1/GS_1-539.1.html). A logger who cuts across the line because the seller misrepresented it can seek reimbursement from the seller. ## Water quality rules on the harvest Every timber harvest must meet the Forest Practices Guidelines Related to Water Quality, nine performance standards in the state administrative code ([Forest Service summary](https://www.ncagr.gov/divisions/nc-forest-service/water-quality/fpg-bmp-differences)). The first is the [streamside management zone](http://reports.oah.state.nc.us/ncac/title%2002%20-%20agriculture%20and%20consumer%20services/chapter%2060%20-%20division%20of%20forest%20resources/subchapter%20c/02%20ncac%2060c%20.0201.pdf) along intermittent and perennial streams and perennial waterbodies. Best management practices, such as log mats at a road entrance, are the methods a logger uses to meet the standards. The standards carry weight. The [Sedimentation Pollution Control Act](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_113A/GS_113A-52.01.html) exempts a timber harvest only when it follows the guidelines. Some river basins and watersheds add [riparian buffer rules](https://www.ncagr.gov/divisions/nc-forest-service/water-quality/buffer-rules) that limit cutting inside the buffer. They cover the Catawba River and its mainstem lakes, Goose Creek, Jordan Lake, the Neuse River, Randleman Lake, and the Tar-Pamlico River. The North Carolina Division of Water Resources makes the final compliance call. See [Stream buffers in North Carolina](/insights/stream-buffers-north-carolina/) for how buffers limit land. > **Take action:** If you may sell the land as well as the timber, get a read on the tract before you sign a timber contract. Start with [Is your land a data-center site?](/who-we-serve/landowners/) ## Taxes on a timber sale A timber sale has federal income tax rules of its own, and a tax professional applies them to your sale. The USDA Forest Service guide [Tax tips for forest landowners](https://www.fs.usda.gov/land/taxtips.pdf) explains the main points: - **Net income.** You pay tax on net income, not gross proceeds. Selling expenses such as forester and attorney fees, and your timber basis, come off first. - **Holding period.** Income from standing timber held for more than one year usually qualifies for long-term capital gains rates. Inherited timber counts as held for more than one year. - **Basis.** Timber basis is your investment in the timber, separate from the land. For inherited timber it generally starts at fair market value on the date of death. - **Reporting.** The form depends on whether you hold the timber for personal use, investment, or a business, and on a lump-sum or pay-as-cut sale. Property tax is a separate question. If the land is enrolled in present-use value, a harvest and a sale can affect it. See [Present-use value in North Carolina: farm and forest land taxes](/insights/present-use-value-north-carolina/), and ask the county assessor. ## If you may develop or sell the land later A clearcut can delay development of the same land. Under [state forestry law](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_160D/GS_160D-921.html), a local government may deny a building permit or a site or subdivision plan for up to three years after a harvest that removed all or substantially all of the trees its development rules protect. The period is up to five years when the harvest willfully violated those rules. Ask the county or town planning staff before you harvest land you may later sell to a builder. ## Key recap - Hire a registered consulting forester. The forester works for you, and the buyer does not. - A licensed land surveyor marks the boundary. Cutting across the line exposes the cutter to triple damages, and a seller who misrepresented the line can owe the logger. - A timber cruise estimates volume by species and product. Sealed bids from several buyers set the price. - Sign a written timber contract or deed that an attorney prepares or approves, and record it. - The harvest must follow the Forest Practices Guidelines, and some basins add riparian buffer rules. - Timber income is taxed on net proceeds. Ask a tax professional before the sale, not after. ## Questions ### Do I need a forester to sell timber? The Forest Service says most landowners find a consulting forester needed and beneficial. If you sell without one, get at least three bids on a clearly marked boundary and use a written contract. ### What is the difference between a lump-sum and a per-unit timber sale? In a lump-sum sale the buyer pays one price for the timber before the harvest and takes the ownership risk. In a per-unit sale the buyer pays for each unit cut and measured, and you keep the risk until the wood is cut and paid for. ### Is money from a timber sale taxed? Yes. Timber held for more than one year usually qualifies for long-term capital gains treatment, and you pay tax on net income after expenses and your timber basis. A tax professional applies the rules to your sale. ### Should I sell the timber before I sell the land? It depends on the buyer and your tax position. A development buyer often prices the land, and a recent clearcut can delay a building permit under state law. Ask a consulting forester and a tax professional before you decide. ## References Primary sources cited on this page, in APA style. - 02 N.C. Admin. Code 60C .0201 (2025). [http://reports.oah.state.nc.us/ncac/title%2002%20-%20agriculture%20and%20consumer%20services/chapter%2060%20-%20division%20of%20forest%20resources/subchapter%20c/02%20ncac%2060c%20.0201.pdf](http://reports.oah.state.nc.us/ncac/title%2002%20-%20agriculture%20and%20consumer%20services/chapter%2060%20-%20division%20of%20forest%20resources/subchapter%20c/02%20ncac%2060c%20.0201.pdf) - Bardon, R. (2025, March 25). *Timber sales: A planning guide for landowners* (AG-640). NC State Extension. [https://content.ces.ncsu.edu/timber-sales-a-planning-guide-for-landowners](https://content.ces.ncsu.edu/timber-sales-a-planning-guide-for-landowners) - Li, Y., Cushing, T. L., & Frey, G. E. (2026, January). *Tax tips for forest landowners: 2025 tax year* (FS-1275). U.S. Department of Agriculture, Forest Service. [https://www.fs.usda.gov/land/taxtips.pdf](https://www.fs.usda.gov/land/taxtips.pdf) - N.C. Gen. Stat. § 113A-52.01 (2025). [https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_113A/GS_113A-52.01.html](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_113A/GS_113A-52.01.html) - N.C. Gen. Stat. § 1-539.1 (2025). [https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_1/GS_1-539.1.html](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_1/GS_1-539.1.html) - N.C. Gen. Stat. § 160D-921 (2025). [https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_160D/GS_160D-921.html](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_160D/GS_160D-921.html) - N.C. Gen. Stat. § 89B-2 (2025). [https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_89B/GS_89B-2.html](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_89B/GS_89B-2.html) - North Carolina Forest Service. (2012, July). *Timber sale contract considerations* (FM-3). [https://www.ncagr.gov/divisions/nc-forest-service/FM03/open](https://www.ncagr.gov/divisions/nc-forest-service/FM03/open) - North Carolina Forest Service. (2025, January 9). *Differences between FPGs and BMPs in North Carolina*. [https://www.ncagr.gov/divisions/nc-forest-service/water-quality/fpg-bmp-differences](https://www.ncagr.gov/divisions/nc-forest-service/water-quality/fpg-bmp-differences) - North Carolina Forest Service. (2025, January 9). *River basin and watershed riparian buffer rules*. [https://www.ncagr.gov/divisions/nc-forest-service/water-quality/buffer-rules](https://www.ncagr.gov/divisions/nc-forest-service/water-quality/buffer-rules) - North Carolina Forest Service. (2025, January 9). *Selling your timber*. [https://www.ncagr.gov/divisions/nc-forest-service/managing-your-forest/selling-your-timber](https://www.ncagr.gov/divisions/nc-forest-service/managing-your-forest/selling-your-timber) - North Carolina Forest Service. (n.d.). *Preharvest planning*. Retrieved October 3, 2026, from [https://www.ncagr.gov/divisions/nc-forest-service/managing-your-forest/preharvest-planning](https://www.ncagr.gov/divisions/nc-forest-service/managing-your-forest/preharvest-planning) - North Carolina State Board of Registration for Foresters. (n.d.). *North Carolina State Board of Registration for Foresters*. Retrieved October 3, 2026, from [https://www.ncbrf.nc.gov/](https://www.ncbrf.nc.gov/) ## Selling land - [Is your land a data-center site?](/who-we-serve/landowners/) - [How to sell land to a data center](/insights/how-to-sell-land-to-a-data-center/) - [What makes land attractive to a data-center buyer](/insights/what-makes-land-attractive-to-data-center-buyers/) - [Selling farm or timber land for development](/insights/selling-farm-or-timber-land-for-development/) - [How much is an acre of land?](/insights/how-much-is-an-acre-of-land/) - [What is land assemblage?](/insights/what-is-land-assemblage/) - [What is a ground lease?](/insights/ground-lease/) - [How an option to purchase land works](/insights/option-to-purchase-land/) - [What is in a land purchase agreement?](/insights/land-purchase-agreement/) - [The due diligence fee in North Carolina](/insights/due-diligence-fee-north-carolina/) - [What is heirs property?](/insights/heirs-property/) - [North Carolina tobacco land: what changed and where it goes now](/insights/north-carolina-tobacco-land/) - [What is taking North Carolina farmland?](/insights/north-carolina-farmland-loss/) - [Land contract: how an installment sale of land works](/insights/land-contract/) - [Owner financing land: how a seller carries the note](/insights/owner-financing-land/) - [Land appraisal: how an appraiser values vacant land](/insights/land-appraisal/) - [Mineral rights: who owns what is under the land](/insights/mineral-rights/) - [Present-use value in North Carolina: farm and forest land taxes](/insights/present-use-value-north-carolina/) - [Recreational and hunting land: what to check before you buy](/insights/recreational-land/) - [Solar farm leases: what a landowner signs](/insights/solar-farm-lease/) - [Cell tower leases: what a ground lease for a tower covers](/insights/cell-tower-lease/) - [Farm leases in North Carolina: renting cropland and pasture](/insights/farm-lease/) - [Cemeteries on private land in North Carolina](/insights/cemetery-on-private-property/) - [Right of first refusal on land: what it binds](/insights/right-of-first-refusal/) - [Selling inherited land in North Carolina](/insights/selling-inherited-land-north-carolina/) - [Land transfer tax in North Carolina: the excise tax on deeds](/insights/land-transfer-tax-north-carolina/) - [Hunting lease agreements: what a landowner puts in writing](/insights/hunting-lease-agreement/) - [Voluntary agricultural districts in North Carolina](/insights/voluntary-agricultural-district/) - [Unsolicited offers to buy your land: what to check before you answer](/insights/unsolicited-offers-to-buy-land/) - [Will a data center nearby raise your land's tax value? What North Carolina law says](/insights/data-center-and-land-tax-value/) - [A power line on your land: what it does and does not mean when you sell](/insights/power-line-on-your-land/) - [Is every rural tract worth data-center money? How land value is set](/insights/is-land-worth-data-center-money/) Send the requirements. We reply with how we would run the search. [Talk about your land](/who-we-serve/landowners/) ## Tell us what the project needs Load, acreage, counties, and timeline. We reply with how we would run the search and where we would start. [Start a site search](/contact/) [Try the calculators](/tools/) Transactions are handled through a licensed North Carolina real estate brokerage.