Common Mineral Owner Mistakes
As you begin the process of selling mineral rights, you will quickly realize there are thousands of options available. With limited information many mineral owners are forced to sell their property below market value. At US Mineral Exchange our goal is to help mineral owners sell mineral rights for maximum value. We do this by getting your property in front of a large number of buyers and allowing them to compete against one another. This competition drives prices higher and ensures that you receive the best price for your property.
Through our years of experience helping mineral owners we have seen a number of common mineral owner mistakes. Each of the mistakes below could cost you thousands of dollars. Before you sell mineral rights below market value, carefully consider the mistakes listed below so you don’t make the same ones yourself!
Accepting the first offer to sell mineral rights
One of the most common mineral owner mistakes we see is accepting the first offer you receive. When you receive an offer to sell mineral rights, it’s tempting to quickly accept it. We see many mineral owners accept the very first offer presented and walk away from a substantial amount of money.
Imagine that you were selling your home and only one buyer ever came to see the property. Do you think you would get the highest value? No way! Now imagine you listed your home on the MLS so that it can be seen by thousands of buyers. When thousands of buyers know your property is available these buyers must compete against one another. This forces buyers to make their best possible offer which ensures you get fair market value. When you sell mineral rights, you don’t want to accept the first offer you receive. It’s extremely important that you see what other offers are out there so you can sell mineral rights for maximum value.
Unsolicited Offers to Sell Mineral Rights
If you own mineral rights anywhere in a decent location, you have probably received numerous letters in the mail. These letters offer to purchase your mineral rights. Mineral owners fall for this trap because they make the process very simple. All you do is sign the enclosed forms and send it back to the company. They typically provide a draft check which allows you to get paid as soon as they receive your documents. Seems so simple!
Unfortunately you will rarely get fair market value when you accept an unsolicited offer to sell mineral rights in the mail. These offers are typically far below market value. They hope that you will quickly sign over the mineral deed without doing any research. Their goal is to purchase the property at an extremely discounted price from mineral owners who don’t know any better. They are able to do this because they have no competition from other buyers!
Signing an Option Contract to Sell Mineral Rights
Another one of the most common mineral owner mistakes is signing an option contract. An option contract allows the “buyer” to take full control of your property during the option period. Once you sign the option contract, the “buyer” now has the ability to turn around and sell your property. The majority of the time the individual will pretend to be a buyer but their ultimate goal is to flip the property to someone else. They make a huge profit flipping the property to someone else. That money should have gone in your pocket!
Do NOT sign an option contract when you sell your property. The vast majority of individuals or companies who try and get you to sign an option contract have no intention of purchasing your property. Their goal is to flip the contract you signed to someone else and make a substantial profit.
Selling Mineral Rights on your Own
When you start the process of selling mineral rights, a quick google search will show you thousands of companies offering to purchase your property. Many mineral owners attempt to sell their property on their own. There are two key problems with selling mineral rights by yourself:
1. Locating Buyers: When you search google for mineral rights buyers it seems easy to locate them. The problem is that there are a large number of buyers who don’t appear on google. These include private wealthy individuals, private equity companies, and privately held companies. These are the types of entities that can afford to pay maximum value but don’t necessarily have a large online presence or active marketing plan. They rely on companies like US Mineral Exchange to help them locate mineral rights to purchase. If you want to sell mineral rights for maximum value, listing your property with US Mineral Exchange will ensure your property gets the exposure it needs.
2. Locating Real Buyers: Another issue facing mineral owners who wish to sell mineral rights on their own is finding real buyers for their property. Can you distinguish between the website of an actual mineral rights buyer and someone who just set up a website to capture leads? There are thousands of individuals who set up websites hoping to capture leads. They flip these leads to a few buyers they know. You could spend hours talking to these “buyers” simply to find out they aren’t actually legitimate buyers and were just wasting your time.
3. Industry Knowledge: Once you spend hours checking with multiple websites and providing your information, you have just scratched the surface of getting your property in front of the right people. Once you get an offer, how do you know you are getting a fair one? Our experts are able to provide guidance as you receive offers. We’ll help you determine which offers are fair, how to counter offer, and guide you through the process after you find an acceptable offer to sell mineral rights. This prevents you from being taken advantage of.
Avoid Common Mistakes by Listing at US Mineral Exchange
When you list your property at US Mineral Exchange, we help you avoid common mineral owner mistakes. We guide you through the entire process and ensure that you get maximum value when you sell. We are industry experts who can help get your property in front of the right audience. These buyers will compete against one another to pay you the highest value for your property. To start receiving offers on your property, list your mineral rights today or fill out the free consultation form below.
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.