Common Mineral Owner Questions and Answers
As a mineral owners, it can be difficult to find reliable and trustworthy information about your mineral rights. At US Mineral Exchange, our goal is to provide accurate information that a mineral owner can rely on. After spending years helping mineral owners sell mineral rights, there are a number of common mineral owner questions and answers. We have compiled all of these questions below to help you gain a better understand your mineral rights. Whether you decide to sell mineral rights at US Mineral Exchange or not, the questions and answers below should be a valuable resource.
Find the section below that best describes your question:
Most Common Questions
- State & County
- Location within the County
- Whether the property is producing royalties
- Whether the property is leased
- Oil and Gas Prices
- Surrounding Production
- Lease Terms
- Mineral Rights Buyers
The truth is that it’s extremely difficult to determine the exact value of mineral rights until they are put up for sale. When you sell mineral rights and get the property in front of a large audience of buyers, it allows the market to determine the true value of your property. For additional information regarding the value of mineral rights, please read the articles below:
1) Choose to sell mineral rights yourself. This will require you to search out individual buyers on your own and hope that you find the one who can pay the highest amount. In addition, you will need to be careful that you are working with a reputable buyer.
2) Choose to sell mineral rights with US Mineral Exchange. Our company is 100% dedicated to helping mineral owners sell mineral rights for the highest possible price. We only work with reputable mineral rights buyers and we have a massive network of buyers who make offers on properties.
You can sign up to sell mineral rights with US Mineral Exchange here: Create Sellers Account
Questions? Fill out the free consultation form and we’ll be in touch: Free Consultation
The first thing you should do is ask for the offer in writing. A reputable company would be willing to put the offer in writing and give you some time to evaluate the offer. With one offer in hand, you now have a starting point for how much your mineral rights are worth.
The next thing you should do is create a listing at US Mineral Exchange and see what other buyers are willing to pay. Let’s pretend that you received an offer to sell mineral rights for $1,000/acre. Once you list at US Mineral Exchange, you’ll get offers from other buyers which will help you determine if $1,000/acre is a fair price. You may get a few offers in that all fall under $1,000/acre which tells you that the offer is a good one and you should accept it. However, many mineral owners find that after listing at US Mineral Exchange they get offers that are significantly higher than the initial offer they received.
You can sign up to sell mineral rights with US Mineral Exchange here: Create Sellers Account
Questions? Fill out the free consultation form and we’ll be in touch: Free Consultation
Mineral Rights Value
If you have questions about the value of your mineral rights, fill out the free evaluation form. We can help give you some idea of the value: Free Consultation
The only way to know for sure how much mineral non-producing mineral rights are worth is to put them for sale and see what buyers are willing to pay. When you sell mineral rights and get the property in front of a large network of buyers, it allows the market to price the value of your property and ensures you get fair market value.
Use the calculator below to quickly get an estimate of the value of royalties:
Keep in mind that the range of values provided above may be significantly less than the true value if there is additional drilling opportunities for your property. Many mineral owners receive multiple offers when they list royalties for sale.
Location: Your location will have a huge impact on the value of mineral rights. There is no way to give a specific value for mineral rights without knowing the exact state, county, and even the location within the county. Even then, every buyer values a property differently.
Oil and Gas Prices: With the recent decline in oil and gas prices, mineral rights value has been affected. While buyers realize that the price goes up and down, they do pay close attention to the price of oil and gas when making a decision to purchase mineral rights.
Timing: The price of oil and gas, geopolitical issues, new information about production in the area, and many other factors affect the value. We have seen many mineral owners who declined offers because they believed the value would increase over time. A drop in oil and gas prices or a few bad wells drilled in their area and they can no longer get offers anywhere near what they received in the past.
Individual Buyers: Every buyer is going to value a property differently. In fact, the difference between what one buyer offers and the next can be significant. One buyer may believe a property is worth $1,000/acre and the next believes it’s worth $2,000/acre. You want to make sure you find the buyer who is willing to pay the highest value.
Limited Information: One of the main reasons it’s so difficult to value mineral rights is that the information is not public. There is no way to know what properties are selling for unless you were directly involved in a specific mineral rights sale.
All of these items make valuing mineral rights very difficult. Your best bet is to fill out the free consultation form below and we can talk about your specific property. While we can’t give you an exact value, we can help you estimate the value of your mineral rights:
Selling Mineral Rights at US Mineral Exchange
You can sign up to sell mineral rights with US Mineral Exchange here: Create Sellers Account
Questions? Fill out the free consultation form and we’ll be in touch: Free Consultation
Lease Agreement
Previous Lease Agreement
Mineral Deed
Royalty Checks
Previous Year(s) 1099
Division Orders
Tax Documentation
The more information you can provide the better!
There are absolutely no costs to list your property. We operate using a success-based fee. Meaning that if we cannot get your property sold, you owe us absolutely nothing. All offers we present to you are net of our commission. If you accept an offer presented, the buyer or the buyers closing agent pays us our commission directly at closing. You never have any out of pocket expenses – EVER.
1. You will not receive an offer above the one you have in your hand. However, you can feel confident that you are working with the buyer who was willing to pay you the highest price.
2. You will receive an offer above the one you have in you hand. This allows you to receive more cash for your mineral rights. Many mineral owners get offers that are significantly higher than the offer they have in hand.
1. Create a listing
2. Once the listing is activated, we will start marketing the property to our large network of buyers.
3. Buyers will start making offers on your property. We will present these offers to you and work with you directly to help you understand the offer and weigh whether it’s a good decision for you.
4. Once an offer has been accepted, you will sign a purchase and sale agreement (PSA) that starts the formal due diligence process. This allows the buyer time to run title (at their expense) to ensure you own the property.
5. Once due diligence is complete, a mineral deed will be signed and notarized by you which officially transfers the ownership to the buyer.
6. We will facilitate the closing process where the deed will be delivered to the buyer and you will immediately receive payment.
We’ll be there every step of the way! As we work through the process of selling mineral rights our team will be there to answer your questions.
