Why Sell Mineral Rights
Many people with oil rights, gas rights, and mineral rights may have second thoughts about putting these rights up for sale. After all, it is possible that individuals on an extremely successful or productive well could make more money in the long term by retaining these rights. Unfortunately, however, situations like this are hardly the majority. In far too many instances, individuals retain their mineral rights and never receive the economic payout that they’re hoping for.
By selling your mineral rights now, however, you are guaranteed a payout for your rights, and you’ll know and agree to the price in advance, removing the financial uncertainty that comes with retaining these rights. Even if your well turns out to not be productive, that financial burden will be passed on to the buyer, and you are still guaranteed the full amount for which you sold your mineral rights.
Why Sell Mineral Rights Now
In addition to the guaranteed payout that selling your mineral rights can provide, there is also considerable benefit in taking action sooner rather than later. One of the greatest reasons to consider selling your mineral rights now, rather than waiting to sell your rights or land for development, is to have cash in hand almost immediately. Whether you need money now, or you want to save up for a rainy day, selling your mineral rights will provide you with quick and reliable money, giving you financial protection in the event that unexpected financial needs arise.
Another great incentive to sell mineral rights now is that the timing has never been better. The United States is currently experiencing an energy and natural gas boom, meaning that buyers are willing to pay top dollar to capitalize on this ever-increasing market. However, as history has shown, energy booms do not last forever, and so striking while the proverbial iron is hot is a must for anyone who is looking to truly capitalize on the potential financial value of their oil, mineral, and gas rights.
The reality of America’s energy future is that more and more energy companies are going to increasingly spend their R&D budgets developing renewable energy sources. Oil and gas, while experiencing a boom, are non-renewable resources, and all signs point to an increasing scarcity of these resources. Not only does this contribute to the present energy boom in the U.S., but it also means that sitting on oil and gas rights is likely not a smart long-term play. As companies begin to successfully develop long-term, renewable energy solutions, the value of oil and gas deposits will drop significantly for landowners. As such, if you wait too long to sell your mineral rights, you could find yourself facing a market that is no longer interested in fossil fuels, and subsequently, a once-valuable asset that you can no longer sell for any notable sum.
Financial Incentive for Selling Your Mineral Rights
Many people are hesitant to sell mineral rights because they view it as a strategic long-term investment, hoping that by allowing production to take place on their land, they’ll make more money in the long run as opposed to selling these rights upfront for a known price. While, yes, there are some people for whom this strategy works, the truth is that far too many people hold out for this dream only to find out that their wells are not productive or that it takes far too long for development to start on their land for it to be economically beneficial.
If you sell mineral rights to an eager buyer, however, you can significantly reduce your financial risk in the long-run, all while still securing a significant financial payout. Additionally, individuals who sell their mineral rights stand to receive notable tax benefits. In many cases, selling gas, oil, and mineral rights can qualify as a long-term capital gains tax, whereas people who lease these rights to developers are conversely saddled with higher tax penalties, as money secured by leasing their land is treated as regular income.
How We Sell Mineral Rights
At The Mineral Auction, we know that your livelihood and the future of your family could largely be connected to you getting a great price for your oil rights, gas rights, and/or mineral rights. As such, we care just as much about getting you a great price for these rights as you do. In order to make sure that the price offered to you is both competitive and generous, we don’t just look for one or two potential buyers when we go to sell your mineral rights. Instead, we tap into an established, vetted network we’ve culled of over 11,000 interested buyers who are ready to pay top dollar for your mineral rights.
Additionally, we don’t just approach these buyers individually – we put your rights up for auction so that all of these interested buyers will be in direct competition with each other for your mineral rights, driving up the price. Finding a reputable individual buyer who won’t try and take advantage of your position is extremely difficult, so why even bother with that risk and that hassle? Let our experienced team bring reputable, interested, and vetted buyers to you, alleviating the difficulty that can often accompany selling mineral rights and help you get an outstanding price on your interests.