What to Expect After Listing Mineral Rights

//What to Expect After Listing Mineral Rights

What to Expect After Listing Mineral Rights

By |2019-05-07T15:48:55-05:00April 23rd, 2019|Sell Mineral Rights|

What to expect after listing mineral rights

Many mineral owners are curious about what to expect after listing mineral rights for sale.   Our goal is to make the process of selling mineral rights extremely transparent.   We have two types of listings at US Mineral Exchange.  We have a standard listing and an auction listing.  Please see the specific section below for what to expect after listing mineral rights for sale at US Mineral Exchange:

What to expect with a Standard Listing

Our standard listings require you to sign exclusively for 30 days at US Mineral Exchange.  The standard listing automatically renews for an additional 30 days.  The vast majority of standard listings are under contract within 30 days.   Typically if a property is priced correctly, you will be under contract within 1 to 3 weeks from the date the listing is activated on our website.  Here is what the process looks like from start to finish:

1.  Inquire – Most mineral owners choose to inquire rather than create their own listing.  Simply fill out the contact form at the bottom of any blog page.  Provide as much information and documentation as possible to help expedite the process.  Providing your existing offers is also very helpful.

2. Consultation – One of our representatives will be in touch shortly once we review your inquiry.  We will tell you what documentation we need to move forward and also provide you with our exclusive listing agreement for review/signature.  We will also discuss pricing with you.  It’s very important to place a “starting bid” even on a standard listing.  The starting bid is typically based on an offer you currently have in hand.  The starting bid can also be based upon US Mineral Exchange’s recommendation if you do not have an offer.  The starting bid is necessary to provide buyers with some ballpark idea of what it will take to buy the property.  The starting bid does not limit the amount you will receive.  If it’s worth more, buyers will compete for the property which will drive the price up.

3.  Listing Activation – Once we have all the necessary documentation, a signed listing agreement, and a starting bid confirmed, we will set up the listing for you and activate it on the website.  Buyers will be notified via email that your listing is active on our website.  Your property will get exposure to thousands of qualified buyers from all over the country.

4. Buyer Inquiries/Offers – When a buyer is interested in your property, they will inquire directly to US Mineral Exchange. One of our listing advisers will contact you to discuss the inquiry or offer. We’ll help you evaluate each offer and determine the best way to respond. If an offer is presented, we will help you understand the positives and negatives of the offer and negotiate the best possible price on your behalf.

5.  Purchase and Sale Agreement – Once a tentative offer has been agreed upon by both you and the buyer, the buyer will put together a purchase and sale agreement (PSA).  This PSA gives the buyer time to complete their due diligence which normally takes around 30 days.   The buyer will run title during this time and the buyer is 100% responsible for the cost of running title.  We will review the purchase and sale agreement and point out any red flags.

6. Mineral Deed Signature – Once the due diligence period is complete, the buyer will provide a deed that you will sign.  The deed is the official document that will convey the interest from the seller to the buyer.  We will review the mineral deed and point out any red flags.

7.  Escrow / Closing – You will sign and notarize the original deed and then send it to US Mineral Exchange.   We will hold onto the deed until the buyer has sent payment to you directly.  Once US Mineral Exchange has confirmed you have received the funds, we will send the original deed to the buyer.    This process ensures that neither the seller nor the buyer is at risk of not being paid or not receiving the original deed.

What to expect with an Auction Listing

Our auction listings work a little different than a standard listing.  Our auction listings run for 7 to 14 days which means they are a faster way to sell mineral rights.  However, the auction listings require that you A) have an offer on the table and B) commit to sell for any price higher than your existing offer.   If you have an offer in hand you are seriously considering, the mineral rights auction is a great way to quickly verify that the offer in hand is fair.  Auctions nearly always end with the mineral owner pocketing more cash than the offer they came to us with.    Here is what the process looks likes from start to finish:

1.  Inquire – Most mineral owners choose to inquire rather than create their own listing.  Simply fill out the contact form at the bottom of any blog page.  Provide as much information and documentation as possible to help expedite the process.

2. Consultation – One of our representatives will be in touch shortly once we review your inquiry.  We will tell you what documentation we need to move forward and also provide you with our exclusive auction agreement for review/signature.

3.  Listing Activation – Once we have all the necessary documentation and a signed auction agreement we will set up the auction for you and activate it on the website. The starting bid of the auction will be just over your existing offer and then we will add our commission on top of this.  What this means is that our mineral rights auctions are no reserve.  Any bid that we get will be higher than your existing offer net of our commission.  Buyers will be notified via email that your auction is active on our website.  Your property will get exposure to thousands of qualified buyers from all over the country.

4. Auction Offers – Buyers will have between 7 and 14 days to bid on your property.  All auctions end on Thursday at 3:00 PM CST.  This ensures that buyers know when to be present to bid.  They also have the ability to bid via a proxy bid.    Our mineral rights auctions are “closed” which means that you will not be able to view the live bidding.  The reason we do a close auction system is that we also verify all bids after the auction ends. We provide mineral owners with the full auction results including the full bid history after the auction ends.  You will be notified when the first bid comes in (confirming it will sell) prior to the auction ending.

5.  Purchase and Sale Agreement – Once the auction ends and the winning bidder is confirmed, the buyer will put together a purchase and sale agreement (PSA).  This PSA gives the buyer time to complete their due diligence which normally takes around 30 days.   The buyer will run title during this time and the buyer is 100% responsible for the cost of running title.  We will review the purchase and sale agreement and point out any red flags.

6. Mineral Deed Signature – Once the due diligence period is complete, the buyer will provide a deed that you will sign.  The deed is the official document that will convey the interest from the seller to the buyer.  We will review the mineral deed and point out any red flags.

7.  Escrow / Closing – You will sign and notarize the original deed and then send it to US Mineral Exchange.   We will hold onto the deed until the buyer has sent payment to you directly.  Once US Mineral Exchange has confirmed you have received the funds, we will send the original deed to the buyer.    This process ensures that neither the seller nor the buyer is at risk of not being paid or not receiving the original deed.

Due Diligence

The amount of time given to a buyer for due diligence is typically 30 days after the Purchase and Sale Agreement is signed.   In some places like Texas and Oklahoma due diligence can be completed in as little as 20 days but this is rare.   In other places such as West Virginia it might take 90 days to close a transaction due to complex title requirements in that area.  Before signing anything you will know exactly how long this due diligence period will take.   We push for the shortest possible due diligence period while giving the buyer an appropriate amount of time.  Mineral rights auctions require a 30 day close maximum unless specifically agreed upon between US Mineral Exchange and the mineral owner.

Questions about listing mineral rights?

If you have questions about listing 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.

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Common Questions

The more information you can provide about your property the better!  We can give you a better idea about the value of selling mineral rights if you provide more information.  The most important thing we need is for you to answer the questions and provide your state and county.

If you have the required documents to list, providing those is extremely helpful!

Absolutely not!  When you inquire at US Mineral Exchange we will not be putting any pressure on you to sell.  We will help answer any questions you have whether you are interested in selling or not.

We typically respond to inquiries in less than 12 hours and usually within hours of submitting the contact form. At US Mineral Exchange our goal is to be available to mineral owners as a resource so we pride ourselves on quickly replying and communicating with mineral owners.

At US Mineral Exchange, we take privacy very seriously. We will NEVER sell your information or use it without your consent. When you send us documentation or tell us about your property, that information does not go outside our company without your consent. Even when you list a property for sale on our website, we strictly control who has access to the information about your listing so that only legitimate buyers will be able to see property details.

Many mineral owners make the mistake of getting an offer and quickly selling.   They then accept an offer far below market value because they felt pressure to sell.   There is nearly always a better price available.

We have two types of listings available to help you sell mineral rights for the best price:

Auction Listing – Our auction listings are for just 7 to 14 days.  If you have an offer in hand you are seriously considering, an auction listing is a quick way to get a better offer and ensure a smooth closing process.  Learn more about our auction listings.

Standard Listing – Our standard listings run for 30 days.  These listings are ideal if you don’t have an offer in hand or you are not in a rush to sell.  Learn more about our standard listings.

The reason that so many mineral owners decide to sell mineral rights at US Mineral Exchange is access to our large network of mineral rights buyers. Our goal is to help you get top dollar for selling mineral rights by getting your property in front of a huge audience of buyers. This allows buyers to compete against one another which ensures you get fair market value for selling mineral rights.

There are absolutely no cost to list your property.  When you locate a buyer by listing your property with us, we are paid a commission directly by the buyers closing agent. This means you never have any out of pocket expenses ever.  We only get paid if we can get you a better price than the current offer you have in hand.