Finding the value of mineral rights is certainly not an easy task. If you want to sell mineral rights in New Mexico, this guide will help you not only understand the value but also help you sell for the highest price. When trying to determine the value of your mineral rights in New Mexico, many mineral owners hope to find a website that is similar to Zillow. While that would be nice, unfortunately, for mineral rights that information is just not available. This leaves mineral owners at a big disadvantage if they are looking to determine value on their own.
On the other side, mineral buyers however have the tools and expertise needed to value your minerals. The challenge is which mineral buyer will value your mineral and royalty rights the highest and which mineral buyer will actually pay you the most. The key to selling mineral rights is competition, just like selling anything else.
How to get Maximum Value from Selling Minerals in New Mexico
First, do not attempt to sell alone. You need an industry expert to help you sell your mineral and royalty owners in New Mexico for maximum value. Not just any industry expert. You need a seasoned expert with a proven track record and a long history of being in business. Just like selling your home, you would research agents and look online for people who have had experiences with them. You want to determine how they market your property and do they have nationwide exposure?
We recommend you look into US Mineral Exchange. They work similar to how the MLS works in real estate in that they get your minerals out in front of thousands of buyers across the nation. Similar to selling a home, you would not want to sell to just folks in your own hometown. Or at least you shouldn’t limit yourselves to this. What about those home buyers looking to relocate from another city or state? How do you get your property in front of them? You need a mineral rights and royalty broker who can market your interest to thousands of buyers from all over the nation. This will allow you to find that one buyer who will pay the highest price for your mineral rights.
How to get Multiple Offers
One of the best ways to ensure you get the best price when selling your mineral rights in New Mexico is by getting the most market exposure. While we highly recommend not selling on your own, here are some things to think about if you elect to go that route.
To sell your mineral rights on your own you need to get them in front of a large number of buyers. You can begin by searching online for oil and gas mineral buyers who are active in the county your minerals are located in. You may find a few or you may find more than you bargained. Either way can seem overwhelming. Once you have your list, contact as many as absolutely possible and see how they respond. Many times they will reply asking for your check stubs, that is normal. Mineral buyers need that information to evaluate what you own and how much you are being paid.
Offers in the Mail
Many mineral owners receive letters in the mail regularly with big numbers and bold promises. While those letters can provide a mineral owner a range of value that the market is putting on their minerals, in almost every case it is a low value. Taking a step back and asking why a buyer would send out mass letters claiming too pay premium prices and you will arrive at one of the following conclusion:
- The offer is below market value and they know something I do not know
- The offer is way above market value and this is an attempt to get me to contact them
In either case, you would not accept an offer for your home from a letter received in the mail. Why accept an offer to sell mineral rights in New Mexico that way? No matter how good the offer may seem, please take some time to research what you own and how you want to market it.
Common Mistakes – Selling Mineral Rights in New Mexico
Here are a few other things to watch out for:
- Buyers that are high pressure and require short time frames that you MUST respond by. If it is a good deal now it will be a good deal in a few days.
- When buyers require you to sign a deed before you have a purchase and sale agreement with the details of the sale clearly stated. You must have an agreed upon purchase and sale agreement before you sign any deed or conveyance document.
- Buyers who ask for more than 30 days to run title to confirm your ownership. This can indicate they have no interest in actually purchasing your mineral rights. Rather, they are going to use the time to sell your mineral rights to another buyer. That buyer is paying them a whole lot more than they are paying you.
We recommend working with a proven industry expert. Selling on your own is not the best way to sell mineral rights in New Mexico. You could be leaving tons of money on the table.
Best Way to Sell Mineral Rights
If you are looking to sell mineral and royalty rights in New Mexico, you want to sell at the highest possible price. To do that you need the highest number of mineral buyers to know they are for sale. On your own, this can be an overwhelming challenge, so you need help from a reputable company. This company should not purchase mineral rights and they should not simply buy them only to immediately sell them to someone else. You want to work with companies who work with only buyers looking to hold mineral rights for the long term and for their own accounts. True end buyers. These are the buyers that will pay the most highest prices and put the most money in your pocket.
Calculating Mineral Rights Value
There are so many factors that go into calculating the value of mineral rights it is hard to pinpoint a quick and easy way to get an amount. If your oil and gas mineral rights are producing royalty income, meaning you are getting a monthly check, you can use the royalty calculator below to quickly get a range of value for your minerals. Be assured this is only a range as many minerals are worth more than the monthly royalty income would suggest. There are so many factors that go into valuing your mineral rights that this is where working with professionals can help guide you.
However, please note that depending upon where your interest is located, the operator, and many other factors, this estimate could be very low!
One thing it is important to understand is that many mineral rights have value beyond the royalty income alone. As mentioned above, many factors play a part in what a mineral buyer is willing to pay for oil and gas mineral rights. Factors such as which oil and gas operator is paying you, production and decline curves, geology, if there can be additional oil or gas wells drilled in the future. So many things it can make your head spin! If your minerals are located in a good location or have future upside the calculator above will not take those factors into consideration. Getting multiple competing offers from mineral buyers is the best way to ensure you sell for the highest value possible.
How to Get Multiple Offers When you Sell Mineral Rights in New Mexico
So, “How do I get multiple offers on my mineral rights?” Searching online can be very overwhelming. How do you know who to trust? What do you do to ensure you don’t get taken advantage of? If I get an offer, will I have to sign paperwork? What kind of paperwork would be required? If you are receiving letters with offers in the mail, it may seem easier to accept one of those offers and move on. But if you do that, you run a high risk of leaving significant money on the table. Money that should have been in your pocket. We have found that the best way to ensure you get multiple offers and in the end sell your mineral rights for the highest value is to work with a reputable broker.
We would love to provide you with a Free Consultation regarding selling your oil and gas mineral rights in New Mexico. Please fill out the form below and we will be in touch via email shortly!
