Estimate Mineral Rights Value
Do you want to estimate mineral rights value? We can help! Estimating mineral rights value is extremely difficult. While it is impossible to accurately estimate mineral rights value like many mineral appraisal services claim to be able to do, we can help point you in the right direction. We will provide you with some rules of thumb and ball park estimates. We will also help you understand what factors affect mineral rights value! If you want to estimate mineral rights value bookmark this page for reference!
Factors in Estimating Mineral Rights Value
The reason it is impossible to accurately estimate mineral rights value is because there are many factors that play a role in the value. No two mineral rights properties are ever identical. The only exception is if you own an identical interest to a family member and that family member has an identical lease. Many mineral owners attempt to search for “comps” to determine if they have a fair offer to sell mineral rights. There is no such thing as comps in mineral rights due of the factors below.
Each factor below can play a significant role in mineral rights value. This is the reason that you can’t get a truly accurate estimate of mineral rights value. Here are just some of the factors that play a role in the value:
- How many wells have been drilled
- How many wells are left to be drilled
- Current production
- Surrounding production
- Decline curve for existing wells
- Pipeline Infrastructure
- Localized Oil and Gas Pricing
- Royalty Rate
- Pugh Clause
- No Deductions Clause
- Active Permits
- Expired Permits
- Surrounding Permit Activity
- Surrounding Rig Activity
- + MANY MORE!!
With all of these factors above and many more, accurately determining what your specific mineral rights are worth is nearly impossible. This is why mineral rights appraisal services do not work.
The Best Way to Estimate Mineral Right Value
The best way to estimate mineral rights value is through existing offers. Existing offers are truly the best way to get a ball park feel for mineral rights value. Every mineral buyer is different. Some mineral buyers will send you a low ball offer. Others will send you a teaser offer and then reduce the price when you contact them. However, if you get multiple offers in the mail to sell mineral rights you can get a general feel for the market value through these offers.
Mineral buyers take all of the factors above into account when making offers. A real legitimate offer from a qualified buyer is the best estimate of the market value of mineral rights.
The Best Way to Sell Mineral Rights for Maximum Value
While a legitimate offer is the best way to estimate mineral rights value, accepting one of these offers is not the best way to get a fair price. The only way to ensure the best price is to get your property in front of thousands of qualified buyers. Your goal is to put the most cash possible in your pocket. When you accept an unsolicited offer to sell mineral rights you will nearly always sell below market value!
When you list mineral rights at US Mineral Exchange, you will quickly get the property in front of thousands of qualified buyers. These buyers will compete to pay you the highest price. This competition among buyers drives the price higher. While the offers you get in the mail are a good estimate of mineral rights value, they do not indicate the true highest market value possible. If you want to sell mineral, rights, listing them at US Mineral Exchange will make sure you sell for the best price possible.
Check out our standard listings and auction listings to learn more about listing at US Mineral Exchange. You might also be interested to learn more about how the process works or the required documents to list.
Rules of Thumb to Estimate Mineral Rights Value
As we discussed above, the best way to estimate mineral rights value is with an existing offer. The best way to sell mineral rights is through US Mineral Exchange where you can quickly receive competitive bids.
If you do not have an offer in hand and you do not wish to sell we are going to give you some rules of thumb to estimate mineral rights value. These rules of thumb can frequently be wrong due to all the factors listed up above. To estimate mineral rights value using a rule of thumb it depends on the status of your property. See our property types page for a more thorough description of each type.
Disclaimer: If you use the rules of thumb below and accept an offer, even an offer that is higher than the rule of thumb, you are nearly always selling below market value! If you have an offer to sell mineral rights, list at US Mineral Exchange prior to selling to ensure maximum value.
Producing Mineral Rights
If you get a royalty check every month, or every so often, you have producing mineral rights. To estimate mineral rights value for producing properties, take the average of your last 3 months of royalty income. Once you have a monthly average, plug it into the calculator below. You can expect to sell mineral rights for around 4 years to 6 years times the average monthly income you receive.
Non-Producing Mineral Rights with an Active Lease
If you do not receive a royalty check but you have an active lease agreement, the rule of thumb is 2x to 3x your lease bonus. For example, if you leased mineral rights for $2,000/net mineral acre, you could expect to sell mineral rights for $4,000/net mineral acre to $6,000/net mineral acre. How much you can sell lease mineral rights for depends a lot on your royalty percentage, the lease terms, and how good or bad the deal was you got when you leased.
Non-Producing and Non-Leased Properties
If you have a property that does not currently produce royalty income and you do not have an active lease, the value is nearly always under $1,000/acre. In most cases, the value will be between $0 and $250/net mineral acre. Unless you have a substantial amount of acreage (250+) we generally do not list non-leased non-producing mineral rights. The only exception is if you have a current offer to sell or you have a recently expired lease that would indicate a higher value.
Questions about Estimating Mineral Rights Value?
If you have any questions about how to estimate mineral rights value or wish to sell mineral rights, please let us know using the contact form at the bottom of this page. We will quickly respond to your inquiry!
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.
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.