The sale type or “selling method” is important in determining the fair market value for your timber. The two most popular types are sealed-bid or negotiated price.
Sealed-Bids
Prospective timber buyers submit written offers to be opened at a specific time and place, and each bidder is only allowed to supply one bid. This is the most competitive way to receive bids and is normally best for final harvests, thinning of older forests, and normal landowners without forestry expertise.
Negotiated Lump Sum
This method consists of face to face negotiations on price. This is best used for thinning and smaller sales. This also works for select cuts of higher value hardwoods. When negotiating it is important to know the local market and value for which you are negotiating, otherwise the buyer is at a significant advantage.