Sell Your Timberland Note in Texas: Tips for Maximum Value

Texas is home to more than 12 million acres of commercial timberland, concentrated in the piney woods of East Texas — a vast, productive landscape that has sustained a thriving forest products industry for more than a century. If you hold a promissory note secured by timberland in Texas, you own a financial asset backed by a type of property that has unique economic characteristics: timberland is simultaneously a real estate asset, a biological factory that grows more valuable over time, and a renewable resource that can generate periodic income through timber harvesting. The decision to sell your timberland note in Texas can convert a long-term receivable into immediate cash, and understanding how note buyers evaluate timberland collateral will help you maximize the value of your transaction.

Timberland notes differ from conventional residential or even agricultural land notes because the value of the collateral includes not just the land itself but also the standing timber — a growing, biological asset that appreciates in volume and value every year without any intervention from the landowner. This dual nature of timberland value — land plus timber — creates both opportunities and complexities for note sellers. A well-managed timberland tract with mature, merchantable timber can be worth significantly more than its bare land value, but accurately quantifying the timber component requires specialized knowledge that not every note buyer possesses.

Whether your note is secured by a loblolly pine plantation in the Deep East Texas timber belt, a mixed hardwood-pine tract in the Trinity River bottom, a managed pine stand in the piney woods of Cherokee or Angelina County, or any other timberland property in the state, this guide covers everything you need to know about selling your timberland note in Texas and getting the best possible return on your asset.

What Makes Timberland Unique as Note Collateral

Timberland is unlike any other type of real estate collateral because it contains a growing biological asset — the trees themselves — that adds value over time in a way that no other land type can match. Understanding this unique characteristic is essential for note holders who want to present their notes effectively and for note buyers who need to assess the full value of the collateral.

The Biological Growth Factor

Standing timber grows in volume every year, typically at rates of 3% to 8% per year depending on species, age, management intensity, and growing conditions. This biological growth means that the timber component of the property's value is increasing even if the underlying land value remains flat. For a note buyer, this growth factor is significant because it means the collateral is appreciating in a way that provides increasing protection over the life of the note. A timberland tract with young, actively growing timber will be worth more at the end of a 10-year note than it was at the beginning, all else being equal. This built-in appreciation dynamic is unique to timberland and can support more favorable note valuations than for bare land or land types that do not have a comparable growth component.

Timber as a Harvestable Asset

Unlike residential or commercial property, timberland can generate periodic income through timber harvesting — either selective thinning of younger stands or final harvest of mature timber. This income potential gives the borrower a mechanism for making note payments that is independent of their personal income, and it gives the note buyer a liquidation option that is not available with other property types. In a worst-case foreclosure scenario, the note buyer could not only sell the land but could also harvest and sell the timber, potentially recovering a substantial portion of their investment from the timber alone. This dual recovery option — land value plus timber value — is a significant positive for note buyers and supports more favorable pricing for timberland notes compared to notes backed by bare land of similar acreage.

Tax Advantages of Timberland Ownership

Timberland enjoys several tax advantages that can affect both the borrower's ability to hold the property and the overall economics of the investment. Timber income is eligible for capital gains treatment rather than ordinary income tax rates, which reduces the effective tax burden on harvest proceeds. Timberland can qualify for agricultural tax valuation under Texas property tax law, which significantly reduces annual property tax obligations. These tax advantages make timberland more affordable to own and more attractive as an investment, which supports property values and, by extension, the value of notes secured by timberland. Note buyers recognize that these tax benefits enhance the collateral's desirability and factor them into their assessments.

How to Sell Your Timberland Note in Texas — Maximizing Your Return

Selling a timberland note follows the same general framework as selling any Texas land note, but the specialized nature of the collateral means that some additional steps can significantly improve the offer you receive.

Assemble Comprehensive Documentation

For timberland notes, documentation goes well beyond the standard promissory note, deed of trust, and payment history. The most valuable additional document you can provide is a recent timber cruise — a professional inventory of the standing timber that details the species, volume, age class, and estimated value of the trees on the property. If a timber cruise has been conducted within the last few years, it provides the buyer with hard data on the timber component of the collateral's value. Other valuable documents include a forest management plan, records of any recent timber harvests, documentation of the property's agricultural tax valuation, and maps showing timber stand boundaries, roads, and drainage features. For the standard note documents, review this checklist on documents needed to sell a land note in Texas.

Consider Obtaining a Timber Cruise Before Selling

If a recent timber cruise is not available, you may want to consider commissioning one before putting your note on the market. A professional timber cruise typically costs between $5 and $15 per acre, depending on the property size and complexity, and it provides an objective, quantified assessment of the timber's value that can meaningfully improve the buyer's confidence in the collateral. Without a timber cruise, the buyer must estimate the timber value based on general assumptions, and conservative estimates typically result in a lower valuation than a professional assessment would support. The cost of a timber cruise can be a worthwhile investment if it supports a significantly better offer on your note.

Work with a Buyer Who Understands Timber Value

Not all note buyers have the expertise to evaluate timberland collateral accurately. The timber component of the value requires familiarity with tree species, growth rates, current stumpage prices, harvesting costs, and the regional timber market. A buyer who lacks this expertise may either undervalue the timber (resulting in a lower offer) or may simply decline to make an offer because they are not comfortable assessing the risk. Longhorn Note Buyers has been purchasing land notes across Texas since 2007, including notes backed by timberland in the East Texas piney woods, and we have the experience to evaluate your timberland note with the accuracy and fairness it deserves. Our statewide perspective allows us to assess timberland collateral in the context of the broader Texas land market while giving appropriate weight to the timber-specific factors that drive value.

Due Diligence for Timberland Notes

Due diligence for timberland notes includes the standard title search and payment verification, along with a property and timber valuation that accounts for both the land and the standing timber. The buyer will assess the property using comparable sales of timberland in the same region, the timber cruise data (if available), current stumpage prices for the species present, and the property's overall condition and accessibility. If a timber cruise is not available, the buyer may commission a brief timber assessment as part of their due diligence, or they may rely on aerial imagery and regional timber production data to estimate the timber value. The due diligence phase for timberland notes typically takes two to four weeks, reflecting the additional time needed for timber valuation. For a broader perspective on note-selling timelines, see this article on the timeline for selling a land note in Texas.

Closing and Getting Paid

After due diligence, closing proceeds in the standard manner — assignment documents are prepared, signed, and recorded, and the buyer wires the purchase price. The total timeline from initial contact to funding is typically three to five weeks for timberland notes, slightly longer than for residential notes due to the additional timber valuation work. Working with a buyer experienced in timberland transactions helps keep the process efficient and minimizes delays.

What Note Buyers Look For in Timberland Collateral

Note buyers evaluating timberland notes apply the standard financial analysis — interest rate, payment history, LTV ratio — and then add a layer of timber-specific assessment that determines the full collateral value.

Species Composition and Age Class

The species and age of the standing timber are the most important factors in the timber valuation. In East Texas, the dominant commercial species is loblolly pine, which is the workhorse of the southern timber industry and provides raw material for lumber, plywood, paper, and other forest products. Pine plantations with trees in the 15-to-25-year age range are approaching or at merchantable size and represent the highest-value timber component. Mixed stands of pine and hardwood, bottomland hardwoods along rivers and creeks, and younger plantations that are still in the growth phase each have different values based on their current merchantability and future growth potential. The buyer will assess the species composition and age class to determine the current timber value and the expected growth trajectory, both of which factor into the overall collateral assessment.

Volume and Quality of Standing Timber

The volume of standing timber — measured in tons per acre or board feet per acre — directly determines the timber's harvest value. A tract with 30 tons per acre of merchantable pine is worth substantially more than a tract with 10 tons per acre, all else being equal. The quality of the timber also matters — straight, well-formed trees suitable for sawtimber command higher prices than crooked or damaged trees that are suitable only for pulpwood. If a recent timber cruise is available, it provides the detailed volume and quality data that allows the buyer to calculate the timber value with precision. Without a cruise, the buyer must estimate based on the age, species, and general condition of the stand, which typically results in a more conservative assessment.

Current Stumpage Prices and Market Conditions

Stumpage prices — the price paid for standing timber at the stump, before harvesting costs — fluctuate based on supply and demand in the forest products market. Pine sawtimber commands the highest prices, followed by chip-n-saw (intermediate-sized logs), and pulpwood (the smallest merchantable logs). Hardwood stumpage prices vary by species and quality. The buyer will assess your timber's value based on current stumpage prices in the region, which they can obtain from timber market reports published by the Texas A&M Forest Service and private forestry consultants. If stumpage prices are currently strong, the timber component of your collateral value will be higher, which supports a better note offer. If prices are in a cyclical downturn, the timber value may be lower, but the biological growth factor means that the timber will continue to accumulate volume and value over time.

Property Access and Harvestability

The practical ability to access and harvest the timber is an important consideration for note buyers because it directly affects the timber's liquidation value. Properties with good road access, a network of maintained logging roads, manageable topography, and proximity to sawmills and forest products facilities are easier and less expensive to harvest, which means the net timber value is higher. Properties that are landlocked, have poor road access, are located in areas with steep terrain or drainage challenges, or are far from forest products markets may have lower effective timber values because of the higher harvesting and transportation costs. If your property has good access and is well-situated relative to wood-using facilities, highlighting these logistical advantages can support a better valuation.

Land Value Independent of Timber

While the timber is a critical component of timberland value, the underlying land also has its own value that contributes to the total collateral assessment. The bare land value of East Texas timberland depends on factors like location, road frontage, water features, proximity to towns and services, recreational appeal, and development potential. Some timberland tracts have significant recreational value for hunting, fishing, and outdoor activities that supplements their timber production value. Others may be in areas where residential or commercial development is approaching, adding a conversion premium. The note buyer will assess both the timber value and the bare land value to determine the total collateral value, and properties with strong values on both dimensions will receive the most favorable overall assessments.

The East Texas Timber Belt — Where Most Timberland Notes Originate

The vast majority of Texas timberland is concentrated in the East Texas piney woods, a region stretching from the Red River in the northeast to the Sabine River on the Louisiana border and westward to approximately the Interstate 45 corridor. Understanding the regional dynamics of the East Texas timber belt will help you position your note for the best possible offer.

The Deep East Texas Core

The heart of the Texas timber industry lies in the Deep East Texas counties of Angelina, Nacogdoches, Cherokee, Jasper, Newton, Tyler, Polk, San Augustine, and surrounding areas. This region has the highest concentration of commercial timberland, the most active timber markets, and the densest network of sawmills, paper mills, and forest products facilities. Timberland in this region benefits from a well-established infrastructure for timber harvesting and marketing, which keeps logging costs low and stumpage prices competitive. Notes backed by timberland in the Deep East Texas core are among the most straightforward for buyers to evaluate because the market is well-documented and the comparable sales data is relatively abundant.

The Transition Zone

West of the Deep East Texas core, the piney woods transitions into the Post Oak Belt and eventually the Blackland Prairie. Timberland in this transition zone — including counties like Anderson, Henderson, Houston, and Leon — tends to have lower timber volumes and less intensive management than the core piney woods, but it often carries additional recreational and development value due to its proximity to the Dallas-Fort Worth and Austin-San Antonio metros. Notes backed by timber tracts in the transition zone may have a different value profile than core piney woods notes, with a larger portion of the total value attributable to recreational use and location premium rather than pure timber production.

Southeast Texas and the Big Thicket

The southeast Texas area, including Hardin, Liberty, and Orange counties and the Big Thicket region, offers a unique combination of timberland and bottomland hardwood forest that is ecologically significant and economically productive. Timberland in this area can be highly productive for both pine and hardwood species, and properties with frontage on the Neches River, Village Creek, or other waterways carry additional recreational and aesthetic value. Note buyers evaluating timberland in this sub-region will consider both the timber production potential and the recreational appeal of the natural environment.

Timberland Note Discounts — What to Expect

The discount on timberland notes reflects the specialized nature of the collateral and the additional complexity involved in valuing the timber component.

Typical Discount Ranges

For performing timberland notes in Texas, discounts typically range from 12% to 30% of the remaining balance. Notes backed by well-stocked, well-managed timberland in the core East Texas timber belt with strong payment histories and favorable terms will receive offers at the lower end of that range. Notes backed by younger plantations with limited merchantable timber, tracts in less productive areas, or properties with access or harvestability challenges will face larger discounts. The availability of a recent timber cruise can significantly narrow the discount by reducing the uncertainty in the timber valuation.

Tips for Maximum Value

To get the best possible price for your timberland note, focus on several key strategies. Provide a recent timber cruise if one is available, or consider commissioning one if the potential improvement in the offer justifies the cost. Ensure that your standard note documentation is complete and well-organized. Highlight any features that enhance the property's value beyond timber — recreational amenities, water features, good road access, proximity to markets. Emphasize the borrower's payment history, particularly if it is strong. Work with a direct buyer rather than a broker to avoid intermediary fees. And be transparent about any issues that might affect the property's value, such as recent harvesting activity, storm damage, or insect infestations. For a comprehensive look at how to minimize discounts, see this article on discounts when selling a land note in Texas.

Common Reasons to Sell a Timberland Note

Timberland note holders sell for many reasons, and a few motivations are particularly common in this market.

Accessing the Timber's Stored Value

Timberland is often described as a "patient" investment — the timber grows slowly, accumulating value over years and decades. For note holders who need or want access to capital now, selling the note is a way to monetize the stored value of the timber without waiting for the note to pay out over its remaining term. The biological growth of the timber means that the collateral is likely appreciating, which supports a favorable LTV ratio and a competitive offer from the buyer.

Simplifying Specialized Asset Management

Managing a timberland note requires some understanding of both the financial aspects of note servicing and the forestry aspects of the underlying collateral. For note holders who are not forestry professionals, the complexity of monitoring timber growth, assessing market conditions, and understanding the factors that affect timberland value can feel overwhelming. Selling the note transfers these complexities to the buyer and replaces them with the simplicity of a cash payment.

Estate Settlement

Timberland is a common component of East Texas estates, and heirs who inherit timberland notes may have neither the interest nor the expertise to manage them effectively. Selling the note allows heirs to convert a specialized asset into cash that can be easily divided and distributed. For more on this topic, see this guide on inherited promissory note options in Texas.

Ready to Sell Your Note?

If you're ready to sell your timberland note in Texas, Longhorn Note Buyers has the experience, the capital, and the Texas land market expertise to give you a fair and competitive offer. We've purchased more than $46 million in notes across Texas since 2007, including timberland notes in the East Texas piney woods, and our 100% close rate means we stand behind every offer we make. Our founder, Nick McFadin, has been buying Texas notes since 1983, and our team understands the unique economics of timberland — from stumpage prices to biological growth rates to the regional timber market dynamics that affect your property's value.

We are a direct buyer — not a broker — which means we purchase with our own capital and deliver the certainty and efficiency that comes from working with a single decision-maker from quote to closing. Whether your note is backed by a mature pine plantation, a mixed hardwood-pine tract, a young timber stand with future growth potential, or any other type of East Texas timberland, we can evaluate it accurately and provide a competitive cash offer within 24 hours.

Call us today at (210) 828-3573 or visit longhornnotebuyers.com to request your free, no-obligation quote. Selling your timberland note in Texas is a smart way to unlock the stored value of your asset and put immediate cash in your hands.

Frequently Asked Questions About Selling a Timberland Note in Texas

How do note buyers value the timber on my property?

Note buyers value standing timber based on the species, volume, age class, and quality of the trees, combined with current stumpage prices in the regional market. The most accurate valuation comes from a recent timber cruise — a professional inventory that quantifies the timber on the property. If a cruise is not available, the buyer may estimate the timber value using aerial imagery, regional growth data, and general assumptions about species composition and stocking levels. Providing a recent timber cruise is the single most impactful thing you can do to ensure that the timber is valued accurately and that you receive a fair offer.

Does the age of my timber affect the note's value?

Yes, the age of the timber is one of the most important factors in the valuation. Mature timber that has reached or exceeded merchantable size — typically 15 to 25 years for loblolly pine, depending on management intensity — represents the highest current value because it can be harvested and sold immediately. Younger timber that is still in the growth phase has lower current value but carries significant future value as it continues to grow toward merchantability. Note buyers will assess the age class distribution of the timber and factor both the current and projected future value into their collateral assessment.

What if my timberland has already been partially harvested?

A recent timber harvest reduces the current standing timber volume and therefore the timber component of the collateral value. However, a well-managed harvest that removed mature timber while leaving younger stands to grow is a normal part of timberland management and is not viewed negatively by experienced buyers. The key information the buyer needs is the timing and extent of the harvest, the volume removed, and the current condition of the remaining stand. If a timber cruise was conducted before the harvest, providing both the pre-harvest and post-harvest data gives the buyer a clear picture of the property's timber trajectory.

Can I sell a timberland note if the property also has mineral rights?

Yes, and if mineral rights are included in the collateral, they can enhance the property's total value and support a better offer. East Texas timberland often overlaps with oil and gas producing areas, and properties with intact mineral rights — especially those with active leases or production — can be significantly more valuable than properties where the minerals have been severed. Be clear about the mineral rights status when presenting your note, and provide any documentation of leases, production, or mineral valuations that you have available.

How long does it take to sell a timberland note?

The typical timeline for selling a timberland note is three to five weeks from initial contact to funding, somewhat longer than for a residential note due to the additional time needed for timber valuation. The preliminary offer is provided within 24 hours. Due diligence, including timber assessment and title verification, takes two to four weeks depending on the availability of timber cruise data and comparable sales. Closing is completed within a few business days after due diligence. Providing a recent timber cruise and complete documentation at the outset can significantly accelerate the process.