If you are looking to get a fair offer from mineral buyers in Texas on your mineral rights this page can help guide you. There are many aspects to selling mineral rights that need to be taken into consideration when you decide your wish to sell. Examples of some of those things are; knowing what factors affect mineral rights value, common mistakes people make when selling mineral rights, so you can avoid them and knowing the range of value of your mineral rights . Those are just a few of the things that need to be thought through when you wish to sell. Getting a fair offer from mineral buyers in Texas is possible and we can guide you on how to make it happen.
Factors Affecting Mineral Rights Value
There are many factors that mineral rights buyers take into consideration when deciding if specific mineral rights are something they would be interested in making an offer on. Many mineral buyers prefer to buy only in specific locations, or plays, as they are called. The county and state your mineral rights are located within do have an affect on the potential value. Oil and gas operators are the companies that drill and operate the wells that extract the oil and natural gas from the ground. Many buyers will look to where the operators are most interested in drilling at the current time to decide where they are most interested in purchasing. If operators are active in a certain area that could potentially increase the likelihood of obtaining a fair offer from mineral buyers in Texas.
Another thing that can affect the value of your mineral rights is how many net mineral acres you own. Most mineral owners that have a copy of the deed showing ownership assume that they own what is on the deed. That is not correct, if the deed reflecting your ownership states 350 mineral acres, that is the gross acreage that was set out in the 1800’s for that platt. As a mineral owner you own a portion of that. Meaning, your great, great grandfather may have owned 100 net mineral acres within that 350, but since then, they have been handed down generationally and split multiple times, either by sale or to heirs. So if he had 4 children who got 25 acres each and each of them had 2 children who go 12.5 acres each and on and on.
Understanding how many net mineral acres you own can be difficult at best but there are ways to help guide you. One way can be to hire a landman to run title, which is when a trained person called a landman, goes into the courthouse and traces the ownership of the minerals all the way back to inception through deeds and sale contracts to determine what you own. That can be a very costly way to go about learning exactly what you own, only to find out what you own is .02 net mineral acres and it is worth virtually nothing. We do not recommend that strategy as it can end up not being worth the money you spend on it.
Another way to determine how many net mineral acres you own, would be to have a copy of the paperwork provided when you leased the mineral rights. Obviously if the mineral rights are not leased this would not be an avenue you could pursue. But we feel having some understanding of the size of the net mineral acres you own is very helpful.
There are numerous other factors that go into determining mineral rights value. Just to a few more as examples, how many wells are drilled on the acreage, how old the wells are, the decline curve of the wells, engineering analysis, income the wells are bringing in. The list goes on. Obtaining a fair offer from mineral buyers in Texas is possible, but we feel is best done with the help of a mineral broker. The mineral broker we suggest using is US Mineral Exchange. They have been in business since 2012 and they have glowing reviews on Google. We feel that reflects well on the company, that their clients take the time to write positive reviews.
There are so many in’s and out’s to selling your mineral rights it can be hard to decipher what steps to take to ensure you get the most value from your sale. If you are seeking a fair offer from mineral buyers in Texas here are some common mistakes to avoid.
The first common mistake many mineral owners make is accepting the first offer you receive to purchase your mineral rights. Many mineral buyers in Texas will send out letters that can be referred to as teaser letters. In them they suggest that your minerals are worth $$$ or that they are paying $$$ for minerals in your area. Both ideas lead you to believe that is what they may pay you for your minerals, that may not be the case. Many times, this turns into a bait and switch, mineral buyers will then ask you to send information on what you actually own and they will run an analysis and return with a very different offer amount.
Another things many mineral owners fall into is feeling pressured to selling quickly because offers they are getting have a “decide by” date on them. While no market will support offers hanging out there and years later someone wanting to sell at a price offered many years in the past, being pressured into selling quickly is a ploy. A mineral buyers saying this offer expires in 10 days, as an example, puts undue pressure on you as the seller and gives the mineral buyer the feeling of having control over the situation. As the seller you must remember you have the product the mineral buyer is seeking, so deciding when and how to sell is entirely up to you. You should never feel as if you have to sell now or you won’t be able to sell them. There are thousands of mineral buyers out there, if one buyer is finding your mineral rights appealing enough to offer to purchase them, there will most likely be others that will do the same.
These are all reason we feel it is a good idea to use a mineral broker, you can work with vetted mineral buyers that are know to be reputable and make fair offers. You can then be confident you sold your mineral rights for the highest price possible. Obtaining a fair offer from mineral buyers in Texas is possible.
Mineral Rights Market Value
When working to get a fair offer from mineral buyers in Texas what do you do to make sure the fair market value of your mineral rights is reflected in the offers. Truly the only way to ensure that you sell your mineral rights for the highest market value is to get multiple offers from multiple buyers. You can then go with the highest offer from the one mineral buyer that will value your mineral rights the highest. Finding that one mineral buyer that will pay you the highest market value is where the work comes in selling mineral rights. Finding a reputable broker that has knowledge of the market and relationship with buyers that make fair offers in Texas we feel is the only way to ensure when you sell you got the most value from your asset. You would not want to sell your car only to find out months later you could have gotten thousands more for it by only listing it for sale on Ebay.
That is why getting multiple offers from multiple buyers can help ensure you get the highest price available. You can then walk away from your sale knowing you were not taken advantage of. It is your asset and you as the mineral rights owner should be the one benefiting from the sale.
To help you get a very broad idea on range of value, if you have mineral rights that are producing royalty income you can put the income amount in and our calculator below will give you a value amount. Keep in mind as mentioned above many other factors go into determining value so this is just a range.
It is encouraging to know that with the proper tools that you can get fair offers from mineral buyers in Texas. There are so many aspects of the oil and gas mineral rights industry that are very hard to understand. Unraveling the proper path to get you the most value from the sale of your mineral rights can be an overwhelming task.
We are here to help you every step of the way and would encourage you to reach out to us with any comments, questions or concerns. We would love to help you as you walk through the process and we pride ourselves on responding to every inquiry within 24 business hours. We look forward to hearing from you!