The value of mineral rights in Texas is not easy to find. A lot of mineral owners are looking for something like Zillow that will tell them what their property is worth. Unfortunately nothing like that exists for mineral rights. The reason is that mineral rights sales are private and there are no public records that show the value. To determine the value of mineral rights in Texas you have to put your property on the market. However, in certain situation we can estimate the value of mineral rights in Texas.
Estimating the value of mineral rights in Texas
Depending on your situation, it is possible to estimate the value of mineral rights in Texas. There are three situations you can be in as a mineral owners. These include:
- Minerals rights that are not leased or producing
- Mineral rights that are leased but not producing
- Mineral rights that are leased and producing
The value for each of these situations above is different so we are going to break them down one by one. Simply find the section below that applies to you.
Minerals rights that are not leased or producing
This means that your property does not have an active lease agreement. Since there is no active lease agreement, there is no production or oil and gas royalties being paid. In this situation it is literally impossible to know the value. With no active lease agreement and no royalties being paid there is no way to make an estimate. Your property could be worth a couple hundred per acre or thousands per acre. It really depends on the location, how long ago you were leased in the past, and a few other items.
The only way to find out how much your property is worth in this situation is to put it on the market. Doing so will allow you to get offers on the property and see what buyers are willing to pay. This allows you establish the value based on the offers that come in. Do you have an offer to sell mineral rights in Texas? If your property is not currently leased or producing there is no way to know if it’s fair until you stack it against other offers. We recommend listing the property at US Mineral Exchange and getting some competing offers.
Mineral rights that are leased but not producing
If you property is currently leased but is not producing oil and gas royalties, an estimated value can be obtained. However, take this estimate as a very rough ball park estimate. The general rule of thumb for the value of mineral rights in Texas is 2x to 3x the lease bonus you received. For example, if you got $500/acre when you leased your property, you might expect to sell for somewhere between $1,000 to $1,500/acre if you were to sell mineral rights in Texas.
Do you have an offer to sell mineral rights in Texas? If so, be extremely careful. The estimate above is just a rough guide. If the offer you have falls inside this estimate, do not quickly accept the offer and assume it’s a fair deal. There’s a chance it could be worth a lot more. If you have an offer to sell mineral rights we recommend you list your property at US Mineral Exchange. When you do, you’ll be able to get competing offers and make sure the offer you have is fair.
Mineral rights that are leased and producing
If you own a property that is currently paying your royalties each month it’s easier to establish a value. The value of mineral rights that are producing is around 4 years to 6 years times the average amount you receive each month. You can use this oil royalty calculator to determine the value of mineral rights. Just enter the average amount you received over the 3 most recent check stubs in the first box:
It’s important to realize that the oil royalty calculator above is just the value of the producing minerals. Your property may have wells drilled on it in the future. If so, a buyer might be willing to pay significantly more than the calculator above would suggest. Mineral right buyers value the producing royalties and the value of future drilling. To ensure you get the best price it’s important to get multiple offers. Doing so will allow you to see what the highest market value is.
Maximum Value of Mineral Rights
As a mineral owner it’s important for you to get the maximum value. You don’t want to sell mineral rights below market value! The key to getting the highest value is property exposure. The more buyers that know your property is for sale, the better chance you have of getting a fair price. Imagine you’re selling a rare baseball card. You go to a couple local shops in town and ask for a quote. One quotes you $500 and the other quotes you $750. A lot of people sell the card for $750 and move on. What they don’t realize is that they could have put the baseball card on Ebay.com where it would be seen by thousands of potential buyers. Doing so would have allowed them to sell the card $2,000 instead of $750 simply because they were able to get the right buyer for their property.
The same thing is true with mineral rights. When you sell you don’t want to talk to one or two buyers and assume you are getting a fair price. You want to get your property in front of all the buyers and see what they are willing to pay. It’s for this reason that we recommend you sell mineral rights at US Mineral Exchange. Putting your mineral rights on US Mineral Exchange is like putting a baseball card on Ebay. It gets your mineral rights out in front of a thousands of buyers and ensures you get the highest possible price. On top of that, there are a lot of other benefits of working with an industry professional. The value of mineral rights in Texas is highly dependent on how you sell your property!
