Trees are probably the most valuable landscape feature we store on our properties. Not just fiscally but for more reasons than we probably expect.
Yet, even if we ONLY consider their monetary value we might be in for a bit of a surprise. Those trees you once thought were just nice trees might actually hold some value.
There are many ways landscapers can appraise the value of a tree. This article [link since removed] offers three suggestions, so I thought I might run the numbers using my three Silver Birch Trees that reside in our front garden. Initially we bought them from a local nursery for $50 each but three years on they are now worth much more.
Method #1 – Comparable Sales
I’m not sure that there are two many people willing to buy fully matured Silver Birches. They have a fast growth rate and these have reached maturity within 3 years.
Method #2 – Value Loss to the Property
This is a very interesting method of appraising a trees value because it differs greatly on the property’s value. But, let’s run the figures and then we’ll discuss it.
In determining a value by this method there are 3 factors which are considered;
- Fair market value of the property prior to the damage.
- The contribution of the entire landscape as a percentage of fair market value. (Research has indicated that the value of trees and shrubs average about 7 percent of the total property value with a range of 0 to 20 percent.)
- An estimation of the landscape impact lost due to tree damage. This estimation is given as a percentage.
So, for this property the figures would look like this;
Fair market value of the property = $500,000
Value of landscape = 7%
Landscape impact loss = 5%
$500,000 x .07 x.05 = $1,750
Therefore my three birches would have a value of $1,750. But what would happen if those same size trees were taken from a similar sized house in a lesser valued suburb;
Fair market value of the property = $300,000
Value of landscape = 7%
Landscape impact loss = 5%
$300,000 x .07 x.05 = $1,050
You could save yourself $700 by getting mature trees from the cheaper end of town. It all depends on the properties value.
Method #3 – Reasonable Restoration
The final method is trying to deduce what it would cost to restore these trees if they were damaged or removed with a similar sized tree. This method also uses three variables in determining a value;
- Replace the gross tree diameter loss with transplantable size trees.
- Replace the gross basal area loss with transplantable size trees.*
- The cost of mitigating the loss of property value (i.e. what landscaping can be done to the property to equal the property value before the damage).
* Basal area is defined as the area in square inches of the cross section of a tree at 4.5 feet above ground level.
This value could be anything from the original $150 spent up to a few hundred dollars.
Yet Another Method – Council of Tree and Landscape Appraisers Method
Out of all of the methods, this one seems to be a bit more scientific – well…as scientific as it can get. The method is based on current valuations from nursery stock set against these four criteria: the species of tree, the geographic area where the tree is located, the species’ ability to adapt to the geographic location and the species’ desirability in the landscape.
So, based on 2003 figures (which have been used in the report), Betula pendula has a 40% species class rating and their trunk sizes are greater than 5.0 inches. This equates to each of my silver birches valuing at $700 each, or a total of $2100 at 2003 prices.
Conclusion
Based on these four methods, my silver birches could be valued at anywhere between $150 and $2100 – quite a significant price variation. In reality it probably more depends on what someone is willing to pay for them to be uprooted, transported and then the inherent transplant risk to have them placed in their garden.
And just to add something more to the pot, we haven’t even considered the GREEN value of these trees and whether this will have an impact on landscaping values in the future. If it did, then my fast growing betulas may be worth even more.