Determining the worth of mineral rights often seems like a daunting task to owners as there are many factors to take into consideration. Answering the question “What are mineral rights worth” can be dependent upon numerous variables, and The Mineral Market can get you started in the right direction.
Nowadays, when people are searching for answers to just about anything, they turn to the Internet. Doing this when it concerns mineral rights worth is like dropping a stone in a pond: you get no reaction except for a sinking stone. You could search the Net for hours and still get nowhere. One reason is that the sale of mineral rights is not public record, so cannot be accessed in the same way as homes or land.
Our role is to save you time and ensure that you are not selling your mineral rights for less than market value. With our expertise, we can at least provide you with an educated guess of their worth right from the start. These helpful tips can provide a better understanding.
1. Mineral rights worth is difficult to determine
a. Prices paid for minerals are not of public record with the exception of a few states
b. Prices change rapidly based on factors like:
- Oil and Gas prices
- Tax Laws
- Recent drilling success in the area
- Size of your royalty checks
- Interest rates
2. Based on finding an appropriate buyer
a. Worth what buyers are willing to pay TODAY
b. Selling quickly can rob you of true value
c. Goal is to find the buyer(s) who will pay the highest amount
3. Surest way to learn worth is to list mineral rights for sale
4. Listing on The Mineral Market with their thousands of buyers ensures the best price
5. Mineral rights value is largely determined by the stage the property is in
a. Three stages: Not Leased and/or Non-Producing -> Leased -> Producing
b. Different values are attached to each stage
i. Non-leased/Non-Producing
1. Buyers not very interested. 5 – 10 years before drilling or production will take place
2. Worth about $25/acre – a few hundred/acre
ii. Leased
1. More value/more demand
2. Lease signed with intent to drill
3. Interested buyers because royalties in as soon as 5 years or less
4. Value could be 2 – 3 times lease bonus amount you signed
5. Royalties negotiated play vital role
iii. Producing
1. Mineral rights worth easier to evaluate
2. Typical buyers offer 50-60 times your average monthly royalty check
The tips mentioned above are general tips that are valuable for every mineral rights owner to understand. There are, however, specific elements of mineral rights worth determined by things such as the state or area you have chosen to do business in. For instance, if you have chosen Texas, you will be among many thousands who own mineral rights there. This means that information regarding selling mineral rights in Texas will be abundant. In the state of Texas, there will be a few additional factors that will come into play when determining how much mineral rights sell for such as:
1. State laws
2. County where property is located and more specifically within that County
3. Location within the county
4. Surrounding oil and gas production
5. Current oil prices
6. Who the oil and gas operators are in the area
We believe that consumer knowledge is paramount. Things like Texas mineral rights laws and how much your mineral rights are worth in Texas according to their particular parameters will be fully explained to you. After all, our goal is to help you make informed decisions about the worth of your mineral rights and how you can receive the most value for them.
As you are probably already aware, most of the mineral rights in Texas are oil and gas. The kind of competition that exists means that many buyers want to offer a below market price. Just as outlined above, learn all that you can about your mineral rights worth and specifics about selling them in Texas.
That’s where the experts at www.themineralmarket.com/ become so valuable. Their expertise will help you navigate the rough waters of mineral rights knowledge.
Determining the worth of your mineral rights is not an easy task for anyone. Learning all that you can before you sell is the best way to protect yourself.