What To Expect When Selling Your Mineral Rights
Howdy folks! Welcome back!
Selling your mineral rights can be overwhelming if you don't know what to expect. From unfamiliar terminology to negotiating with buyers and the pressure to make the right decision without knowing all the facts, it's easy to feel lost.
Today, I'll give you a few pointers on how to get the best possible price and protect yourself throughout the mineral sales process.
A Word of Warning:
Mineral buyers come in two categories: good guys and bad guys.
There are quality groups with solid reputations and high ethics, and then there are bottom feeders who prey on mineral owners.
Before you start the mineral sales path, make sure you know what you own. If you don’t, you’re leaving yourself open to be taken advantage of.
Know What You Own:
We offer a ton of free content to help you determine how much acreage you own, locate your mineral properties on a map, and research oil and gas activity in your area.
While some buyers might not overtly lie, they may omit important factors that impact the value of your mineral rights.
Always assume the buyer knows more about your property than you do. When selecting a group to work with, look for straight shooters who will share all the facts and give you a fair and honest price.
Beware of Big Promises:
Watch out for buyers making big promises or offers.
The highest offer might not be the most legitimate. They might get you under contract for that price, but they may not have the wherewithal to show up at the closing table and write you that check.
Trust your gut and be careful.
The Sales Process:
When you get in touch with us, we’ll have a simple conversation to hear your story.
We’ll ask specific questions to help us identify the tract, figure out how big it is, and exactly where it’s located.
We use a powerful map to see every single oil and gas well in the country, allowing us to determine if your property is a good fit for us.
Check Stubs and Valuation:
If your minerals are producing, we’ll ask for a copy of your most recent check stub. This helps us identify your specific wells and the decimal interests you own in each.
We use state-of-the-art reserve modeling software to forecast the value of your existing wells and potential future wells, allowing us to come up with a purchase price that makes sense for us and our partners.
We’ll share our map with you, show you all the activity in your area, and even tell you how many wells we think will be drilled in the future.
Making an Offer:
We’re selective about what we buy, but if we’re interested in your property, we’ll present you with an offer.
While we can’t guarantee the highest offer, we are very competitive and don’t rip people off.
You’re the mineral owner and you’re in the catbird seat. You’re not obligated to say yes, but if you do, here’s what you can expect.
The Purchase Agreement:
The purchase agreement is a promise to purchase, setting out all the terms of our deal, including the purchase price, acreage, due diligence, and closing date.
Once the purchase agreement is signed, we’ll allocate resources to do a full title review of your property to prove you own those mineral rights. After the title review, we’ll be ready to close. We can send an ACH, wire the funds, or provide a good old-fashioned check.
Once the funds are sent, the deed will be recorded in the courthouse and the transaction is complete.
If you want to work with someone who will shoot you straight and help you understand the real value of your mineral rights, click the button below.
