Factors to Keep in Mind When Putting Mineral Rights Up For Sale
The large demand for natural resources, such as oil, gas, and minerals, is leading many people across the country to capitalize on the market’s favorable state by selling their mineral rights. This possibility of an advantageous payout can make sellers blind to the deceptive tactics buyers may employ to avoid fair compensation of your mineral rights. As exciting as an immediate cash payment may be—especially if it is a larger amount than you had anticipated—it is important to exercise diligence before signing away your rights, so you are able to obtain as much value for your mineral rights as possible.
While many participants in oil and gas businesses fairly and honestly participate in the market, it is important to keep in mind that the foundation of such a transaction is business-oriented—meaning some buyers will try to obtain as much profit as possible while avoiding paying what you rightfully deserve. At The Mineral Auction, our mineral rights professionals are well-seasoned in ensuring sellers receive maximum profits for their highly-coveted mineral rights. We understand that this is a pivotal transaction to the well-being of you and your family and can work diligently to guide you through the process of a fair exchange that provides you with maximum benefits.
Common Tactics by Buyers to be Cautious Of
Selling your mineral rights is a process that can seem foreign to those that have never done it before. Fortunately, there are a number of ways you can protect yourself from being taken advantage of by drilling companies while you are navigating this landscape. Some deceptive tactics commonly employed to take advantage of new sellers include:
- Using inconsistent language meant to trick the seller
- Using terms like “royalty acre” and “mineral acre” interchangeably to make sellers think they are the same thing
- Depositing a bank draft prematurely so that you are legally bound to sell your minerals and cannot renegotiate
- Offering a compensation amount without any explanation to how they arrived at that amount
- Not offering valuations with thoroughness and precision
- Not offering the fair market value
- Cutting corners and not involving you in the process
When considering an offer, it’s important that you make sure to consult with someone who knows the market and can research whether or not you are getting a fair estimate. Buyers who do not use clear, consistent language often try to rush you into an agreement before you have a chance to negotiate.
Consult with a Mineral Rights Professional
Putting your mineral rights up for sale is an inherently complex process and may require the services of a broker if you are unsure what steps you must take. If you are interested in selling your mineral rights, contact The Mineral Auction at (512) 698-2802 for advice, support, and guidance throughout this transaction.
