Finding out if your property’s mineral rights belong to you is the first step to selling this interest. If the surface rights have been separated from the mineral rights, you may not be the owner of both. Deeds, which are public record, can be obtained from your county recorder’s office, and will indicate to whom the mineral rights belong. This is also a great point to start tracking data on these rights, crucial information to attract and inform potential buyers.
Knowing the market for oil and gas mineral interest will be helpful in setting a selling price. You can begin by checking the New York Mercantile Exchange for current pricing of these commodities. However, asking price for mineral rights is subject to extreme fluctuation and is often dependent on how motivated you can influence buyers to be. Building a spread of interested buyers is key to the value you can secure from your sale. When potential buyers are faced with competition, this will drive their offers higher, as well.
Simply put, minerals that are producing revenue are likely to be of more value than minerals with no history of producing revenue. Without this history of revenue production, potential value may be less certain to buyers.
Waiting to Sell
Like selling a house, this process should not be instant or overnight, so anticipate a few weeks of interacting with the market. It may be tempting to accept the first offer you are given, but if you can keep a savvy business sense and a little patience, it will pay off on this one-time transaction of the rights to your valuable oil and gas assets.
Acting too quickly on a sale can also be the result of pressure from a so-called flipper, who will get you to sell your rights to them at a lower price, find a buyer at a higher price, and leave with the additional profit you could have made for yourself.
Listing Your Rights
Listing online through a professional company will get your mineral rights on the market. Getting consultations from various professional companies prior to listing will be helpful in deciding where to place your trust for the sale of your mineral rights. Don’t be afraid to admit when you don’t know something, and seek help from an attorney if you need assistance in understanding the terms of your negotiation before it is finalized. Call the team at Gallatin and get started today!