Market Value for Mineral Rights
When you sell mineral rights it’s important to understand the market value for mineral rights. The market value for mineral rights is difficult for many mineral owners to understand. The reason is that when you sell a home you can look at websites like Zillow and Trulia to see what your house is worth. When you sell mineral rights there is no website that can tell you the value of your property.
Things that do NOT indicate market value for mineral rights
If you want to understand market value for mineral rights it’s important to understand what things do not indicate the true market value of your property. Here are a list of some of the most common things mineral owners base their property value on that are not correct:
Local Rumors: When you base the value of your property on local rumors you are setting yourself up for disappointment. The rumors that circulate locally are almost always referring to the most expensive and best property sold in the entire county. When a mineral owner is convinced their property is worth what everyone around them tells them they will likely never sell their mineral rights. Local rumors and what the market is actually willing to pay are two different things.
Outdated Information: Another common trap mineral owners fall into is believing their property is worth a certain amount because that’s what they were offered a few years ago. The true market for mineral rights changes extremely rapidly. When the price of oil changes, the value of mineral rights can change dramatically as well. If you are basing the value of your property on what you were offered even a few months ago the value has likely changed.
Neighbors Property: When you value mineral rights based on what your neighbors property is worth, you can count on getting something entirely different. While it’s true that your surrounding neighbors property should be valued approximately the same, there are still other factors. There factors include the timing, who is making the offer, your ability to negotiate, number of acres owned, whether you are leased, lease agreement terms, and many more. If you are leased at 12.5% and your neighbor is leased at 20% their property is worth a significant amount more than yours.
Online Forums: Another unreliable source of information about the value of your property is forums. Mineral rights forums are filled with information that’s extremely unreliable. These forums tend to be filled with a lot of opinion and very little fact. A lot of the information being discussed is out of date, coming from a 3rd party, and coming from people who talk about mineral rights in forums and don’t actually participate in the market. Keep in mind that forums are a great place to learn more about your mineral rights. It’s simply important to understand that gauging the value of your property from these discussions will lead you down the wrong path.
How to determine market value for mineral rights
The true market value for mineral rights is based on what a buyer is willing and able to pay today for your property. There is no better indicator of the market value for mineral rights. When you find a buyer who is willing to purchase your property today for a set number, you now have a true market value for the property. You can dismiss all the other misinformation and rumors you heard until you are talking to an actual buyer who has the cash and is ready to buy.
As a mineral owner, it’s key to understand that your property is only worth what someone is willing to pay. There are endless discussions taking place about the market value for mineral rights but only a real offer from a real buyer can give you that information.
How to Maximize the Market Value for Mineral Rights
Once you understand that rumors, forums, and hearsay to not indicate the true value of your property and you know only a true offer indicates value, how do you get the maximum value? When you sell mineral rights the key to getting maximum value is to get your property in front of a large audience of real buyers. When you get your property in front of a large audience of buyers it allows these individuals to compete against one another. This competition drives up the price as buyers bid against one another.
If you get your property in front of a large number of buyers, you can evaluate multiple real offers from buyers. This allows you to see the true market value of your property. You can evaluate all the offers and select the highest offer among the real offers you have. This is the maximum market value you can receive when you sell mineral rights.
Sell Mineral Rights at US Mineral Exchange
When you sell mineral rights at US Mineral Exchange, you are ensuring that you get the maximum market value for your property. Our company gets your property in front of our huge network of qualified mineral rights buyers. These buyers will help you determine the true market value for your property. Interested buyers will submit bids for your property and help form a picture of what the market is truly willing to pay today for your property.
We encourage you to learn more about US Mineral Exchange and then list your property for sale. There’s no cost to list and no obligation to accept any offer you receive. It’s a risk free way to see what the true market value for mineral rights is.
Contact US Mineral Exchange:
If you have questions about your mineral rights, we’re here to help! We speak with mineral owners every day and we look forward to hearing from you. Please don’t hesitate to fill out the form below with any questions and our friendly team will respond quickly.
Many mineral owners make the mistake of finding a couple buyers and requesting a quote. They then accept an offer far below market value because the buyers they found weren’t the ones willing to pay the highest price. When you list at US Mineral Exchange, it allows all the buyers to come to you which means more cash in your pocket. We frequently speak with mineral owners who have an offer in hand but want to know if it’s fair. After listing at US Mineral Exchange, they get a higher offer than the one they had almost every time.