7 Terrific Tips To Successfully Sell Your Mineral Rights!
November 21, 2018
If you’re like many mineral owners in Texas, you may have an interest in selling your mineral rights.
With the amount of activity happening in the oilfields today, doing so can be quite lucrative.
Yet before you sign the first contract that comes your way, follow these tips for success.
Proceed with caution when you sell your mineral rights so you get a really great deal with a reputable buyer.
1. Know What You Own and What It’s Worth
The ground in Texas is rich with minerals.
If you’re thinking of selling your mineral rights, it pays to have someone explore your right to tell you what you’ve got and give you an estimation of how much might be there.
Once you have that information, you can loosely determine ahead of time what it’s worth so you don’t get cheated.
2. Understand Surface Rights
It’s important to understand that when you sell or lease your mineral rights, in most cases you are handing over control of the surface to the production company.
This is a detail that should be negotiated with the help of a lawyer if you wish to retain certain use of your land.
3. Understand Valuation and Market Value
There is a whole process involved in determining the value of your minerals.
Value is also partially determined by market value. Before you sell your mineral rights, it’s important that you understand how valuation is done, what is the current market value, and how they affect each other.
Your dealings with buyers who want to buy for as low as possible will be easier once you do.
4. Document Everything
From title searches and land exploration records to previous royalty payments and mineral leases, document everything and keep your receipts and papers.
All of this information is critical for proving mineral rights ownership, your right to sell them, and how much what you’re selling is worth.
5. Learn as Much as You Can About Selling Mineral Rights
Selling your mineral rights is very different from selling real estate or other tangible property.
There are many laws governing the practice as well as different strategies for finding good buyers and negotiating successful deals.
With so many details involved, it’s essential that you learn about dealing in mineral rights so you know how it’s done, what to expect, and how not let someone take advantage of you.
6. Never Take the First Offer
As anxious as you may be to make a deal, never take the first offer especially if it’s an unsolicited one.
Every experienced broker will tell you to be cautious of buyers who come out of nowhere.
Also understand that experienced buyers who realize you are newer to the trade will low-ball you while disguising it as a great offer.
Sellers must be just as careful as buyers.
7. Unless You’re Experienced - Don’t Do It Alone
These brokers will ensure you don't get cheated by helping you every step of the way.
They also have access to networks of the most reputable and qualified buyers who will pay fair prices.
Selling Mineral Rights - A Summary
Using these tips and the advice of a skilled professional, selling your mineral rights can be a positive experience!
Selling Your Mineral Rights In Texas?
Let Permico Royalties Help You Sell Your Mineral Rights!
Call (432) 242-7335!
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