Auction Mineral Rights
Do you want to auction mineral rights? We recommend against a mineral rights auction for two reasons.
The first reason we recommend against mineral rights auctions is that mineral rights are a unique property type that is not a liquid investment.
What does that mean exactly?
When you sell a stock, there are thousands of shares trading hands every second. The market value of a stock is known down to the second. This is because there are thousands of orders being placed by buyers and seller. All of these buyers and sellers are trading an identical item, a share of stock. Everyone understand and agrees what is being bought and sold.
With mineral rights, what is being sold is unique. Your specific location, the number of acres owned, your lease royalty rate, the type of interest you own, and many other factors play a role in what you are selling. When you sell mineral rights, you are selling a unique property unlike any other mineral rights being sold.
There is also far less volume of buying / selling mineral rights compared to a stock. This means the market price of mineral rights is unknown.
The second reason, and most important reason, we recommend against auctioning mineral rights is because you can sell for significantly less than you should.
In an auction system, the highest bidder wins the auction by a few dollars more than the next highest bidder. However, in most cases, the highest bidder placed a proxy bid for quite a bit more than what they will end up actually paying you. What is a proxy bid? A proxy bid allows bidders to tell the auction system the highest price they will pay for your interests. What is wrong with that?
Simple. The auction system knows the highest prices buyers would pay for your property but you do not and because of the way the auction system is designed, you never will. You will simply sell to the highest bidder for the minimum bid over the next highest offer.
This is why we recommend against auctioning mineral rights. The potential to leave significant money on the table is a big risk to ensuring you sell for the highest price possible.
Rather than auction mineral rights, we recommend listing mineral rights for sale at US Mineral Exchange. Please take some time to read through our success stories. You will discover the reasons why listing with US Mineral Exchange is the best way to sell your oil and gas mineral rights and royalties.
Where to auction mineral rights?
Another issue with mineral rights auctions is transparency.
There are a number of companies out there who offer mineral rights auctions. The problem is that there is no auction. When you look at their website, there are no listings and you can’t actually view auctions taking place.
How can a mineral rights auction get you a fair price if there are no auction listings? It can’t.
A mineral rights auction can’t function unless it’s public and has active participants. When you get on ebay.com, you’ll notice that you can see the listing, number of bids, time remaining, etc. If you find a company offering to auction your mineral rights but they don’t have an auction system in place, how can they get you a fair price?
At US Mineral Exchange, we offer the ability to list mineral rights. We then negotiate privately to ensure the best market price available. You can view our listings online and registered and approved buyers can view additional details and place bids.
Why Sell Mineral Rights at US Mineral Exchange
The primary reason to sell mineral rights at US Mineral Exchange is because you will sell mineral rights for the highest price. We do this by quickly getting your property in front of thousands of qualified buyers. Mineral buyers will be competing against one another to pay the highest price for your mineral rights. The only way to get the best price when selling mineral rights is competition.
One of the common mineral owner mistakes we see is selling mineral rights on your own. Mineral owners will get a few offers in the mail, locate some mineral buyers online, and then accept the highest offer they find after some negotiation.
What these mineral owners don’t realize is that they sold far below market value. Why? Even though your offer may have been the highest offer you found, only a tiny fraction of mineral buyers in the market even knew your mineral rights were for sale.
When you sell mineral rights at US Mineral Exchange, thousands of buyers will see your property is available and compete which drives the price higher. Listing at US Mineral Exchange ensures that you get the highest market value available when you sell.
In addition to getting the highest fair market value available, we also ensure that the closing process goes smoothly and you do not get taken advantage of. We will stand beside you every step of the way to ensure everything goes smoothly.
How to List Mineral Rights at US Mineral Exchange
To list mineral rights at US Mineral Exchange we need to collect some documentation from you. The documentation that we request is necessary to ensure the best price possible. We understand that it is a pain to gather documentation but doing so gives us the best chance possible to maximize value for you. Here is the documentation required to list mineral rights at US Mineral Exchange:
If you receive royalty income:
If your property is leased, but you do NOT receive royalty income:
Please see our required documents to list page with more information about the necessary documentation as well as example documents.
Once you gather up the necessary documentation please fill out the contact form below or visit our free consultation page.
If you don’t have the documentation yet or you simply have questions, please do not hesitate to fill out the form anyway! We are here to help and would be happy to answer any questions you may have.
Ready to list mineral rights? Questions?
If you have questions or concerns about our mineral rights listing please don’t hesitate to let us know. The free consultation form is available below for you to get the process started or ask questions.
When you fill out the form one of our representatives will be in touch very soon to answer your questions.