Finding the value of mineral rights is not an easy task. If you want to sell mineral rights in New Mexico, we will help you understand value and how to get the best price. Many mineral owners hope to find a website that is similar to Zillow or other sites in the hopes they can plug in some information and find a quick and easy answer to what their mineral rights are worth. Sadly, that is not how the mineral rights market works. Mineral buyers use complex and complicated equations to determine how they personally would value your minerals. If you speak to multiple buyers you will get multiple “values”.
How to get Maximum Value from Selling Minerals
There are many reasons why working with a professional when you decide to sell mineral rights in New Mexico is so helpful. Just like with real estate, if you were to sell your home you may use a real estate agent to get the most market exposure, by using the MLS. Unfortunately there is no MLS for mineral rights. However, one of the sites we recommend using to help guide you when selling your minerals is US Mineral Exchange.
They work similar to how the MLS works in real estate in that they get your minerals out in front of all the buyers on their site. In the analogy of selling a home, it would be akin to doing a for sale by owner, versus using a real estate agent to get larger market exposure. In the for sale by owner, your market exposure is anyone who happens to walk or drive by. When you use a real estate agent, you are exposed to thousands of buyers who are actively looking for a home and seeking to make offers. You can then find the one buyer who will put the highest price on your minerals and therefore sell for the highest value putting the money in your pocket!
How to get Multiple Offers When Selling Mineral Rights
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. We highly recommend not selling on your own but here are some things to think about if you decide to sell on your own. To sell your mineral rights on your own you need to get them in front of the most number of buyers. You can begin by searching online for oil and gas mineral buyers and the county your mineral are located in. This will yield hundreds, maybe thousands of results, which can seem overwhelming. Just pick a few and fill out the contact form on their webpage 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. There are a few things to be aware of and watch out for.
- Buyers that are high pressure that give short time frames that you MUST respond by. Those can indicate they are low balling and don’t want you to get other offers to compare to.
- When buyers require you to sign a deed before you have a purchase and sale agreement with the details of the sale clearly stated. This is problematic in that you don’t know the details of what you are being paid and you have signed ownership over.
- Buyers who ask for more than 30 days to run title to confirm your ownership. This can indicate they are going to use the 90 days or so to flip your mineral rights and pocket the additional profit for themselves. As the mineral owner you should get all the benefit from the sale and put the profit in your pocket.
Common Mistakes – Selling Mineral Rights in New Mexico
Many mineral owners receive letters in the mail regularly with big numbers and bold promises of how much money they will make if they sell mineral rights to Company X or Agency Y. While those letters can, at times, lead to a potential understanding of a current range of value that the market is putting on your minerals, there are many dangers to accepting the first appealing offer you receive in the mail. Many mineral buyers in New Mexico will use fine print and pressure language to lead sellers to feel like they need to rush and accept this offer or they will not be able to sell their minerals. We would caution you against giving in to that pressure. Deadlines to sign quickly rarely lead to the seller being the one that is benefiting the most from a mineral sale. Educating yourself and working with professionals is the best way to understand the market and sell mineral rights in New Mexico for the highest value back in your pocket.
Best Way to Sell Mineral Rights
People that own mineral rights in New Mexico, like yourself, want to sell at the highest value. To do that you need the highest number of mineral buyers to know they are for sale. The best way to get your oil and gas mineral rights in front of the largest audience of mineral buyers is to market them publicly. To do that you need to find and work with a reputable brokerage company that is not looking to flip your mineral rights.
You want to be sure you find a reputable company that will be selling to end mineral buyers that will pay the highest value for your mineral rights. Flippers, which are mineral buyers that are looking to just buy your mineral rights in New Mexico and re sell them at a higher price directly take money out of your pocket and put it into theirs. Reputable brokerage companies, work only with mineral buyers that plan to keep the minerals, so you get to keep all the money from the mineral rights sale.
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.
One thing it is important to understand is that many mineral rights have value beyond the royalty income alone. 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, future value, 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
The first question you may be asking is, “How do I get multiple offers on my mineral rights?” Searching online can yield thousands of results which can be very overwhelming. How do you know who to trust? What do you do to ensure you don’t get taken advantage of? These can lead to more questions that can just seem never ending. If you are receiving letters with offers in the mail, it may seem easier to accept one of those offers and move on. If you do that you run the high risk of leaving money on the table that could 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!