Does it feel like the oil and gas industry is hiding something? When it comes to figuring out how much mineral rights are worth it seems impossible. No matter how many sources you check you can’t find accurate information. Everyone seems to be giving you a different number. Today we are going to reveal how much mineral rights are worth. This free guide will explain everything you need to know about mineral rights value in America.
No reliable source for mineral rights value
To understand how much mineral rights are worth it’s helpful to know why you can’t seem to find accurate information online. There are two primary reasons. Below we explain why each of them play a role in why you can’t find out how much mineral rights are worth.
Reason 1: Public information
When a home is sold it becomes a matter of public record. You can go to zillow.com and see what every home in your neighborhood sold for. With mineral rights that’s not the case. There is no public record of mineral rights sales. This isn’t the oil and gas industry hiding the value (completely) but it’s the reason why you can’t find accurate information online. There simply is no reliable source of information to tell you how much mineral rights are worth.
Reason 2: Misinformation from buyers and mineral owners
Now that you know there is no way to get accurate information from public records, it’s time to look at misinformation. There are two conflicting views on how much mineral rights are worth.
On one hand your have mineral owners. It’s in mineral owners best interest to say the value is as high as possible. If you get on mineral owner forums you will see huge numbers being throwing around. $10,000/acre here and $15,000/acre there. While it’s possible someone did get that amount back when oil prices were over $100/barrel and in the most prime spot in the entire country, this is not a reliable source of information. The amount of misinformation and rumors you will find on mineral owner forums is staggering. We’re read through the information we find there shaking our heads. The information is simply wrong well over 90% of the time.
On the other hand, mineral buyers will feed you misinformation as well. Think about it. How much mineral rights are worth is based on what a buyer is willing to pay today. Buyers have an incentive to convince you that you property is worth the least amount possible. They want to buy your property. Why would they give you a realistic number when they will then have to pay you that amount? A mineral rights buyer wants to pay you the least amount possible. They will nearly always low ball you and tell you it’s worth less than the true market value.
How much mineral rights are worth today?
Another important thing to keep in mind is current value. Many mineral owners get caught up figuring out how much mineral rights are worth in the future. The value of your property is what mineral rights buyers will pay today for your property. We talk to a lot of mineral owners who say, “The mineral rights will be worth $X once they drill the property!”. The problem is that it may take 10 years (literally) for that to happen. Do you want to hold onto your property for 10 years or do you want to get paid today?
How to sell mineral rights for maximum value
There is only one way to figure out exactly how much mineral rights are worth. To sell them and find out exactly what a buyer is willing and able to pay today for your property. We can estimate the value of mineral rights all day, but until you put your property on the market and sell it there is no way to know for sure.
To get the maximum value when you sell mineral rights you need multiple buyers competing for your property. Competition is key. It forces buyers to pay you the highest possible price. A buyer is motivated to pay you the least amount and they will unless they have to compete. When you sell mineral rights you want to get multiple buyers driving up the price.
By listing your property with a reputable company like US Mineral Exchange, you can quickly find out how much mineral rights are worth. Mineral owners trust US Mineral Exchange because they have a history of helping you get the best price. After listing your property will be seen by thousands of buyers. US Mineral Exchange is the go-to place for mineral rights buyers looking for property. Place your property where the buyers are and you will get maximum value.
