Selling Mineral Rights 101
When someone comes to us and asks what their mineral rights are worth, we tell them they’re worth whatever someone is willing to pay. The next thing we do is ask if they would like to present their mineral rights to thousands of buyers to find out how much they’re willing to pay.
Sometimes, we are approached by individuals who have already received an offer on their mineral rights. Almost always, there is a wide variance between an offer they have already received and the offer we are able to eventually get for them. Working with The Mineral Auction consistently gets mineral rights sellers higher offers than they would have received on their own. This is because of a few factors:
- First, different mineral rights buyers have different valuation matrices and different opinions on specific locations.
- Second, most buyers are out to give the sellers the least they can to boost their margins.
- Lastly, without a competitive environment, the seller doesn’t have the leverage they need to request a higher offer for their mineral rights.
At The Mineral Auction we are able to use all of these factors to our advantage in order to help our clients receive the highest valuation possible for their mineral rights. Our mineral rights specialists can help you broker a deal with potential buyers.
The Process of Selling Mineral Rights
This is a step-by-step explanation of the streamlined process we use to sell mineral rights for our clients:
- Potential client comes to us and says they may be interested in selling mineral rights.
- Discuss with client the risks and benefits of selling, market conditions, and their expectations.
- Gather information regarding legal descriptions, leases, and check stubs
- Have the client sign a one-page listing agreement (no lengthy signups or intrusive questionnaires).
- Search GIS maps and Oil and Gas Databases so that we can paint the upside to the buyers in a favorable light.
- Advertise minerals to thousands of trusted and interested buyers directly through email marketing.
- Submit offers to the seller as they come in and give our input about the offer.
- Once an acceptable offer is agreed upon, we help the client with the Purchase and Sale Agreement (PSA). The PSA spells out the terms for the sale, such as: names of parties/entities, title review period, earnest money, purchase price, etc.
- Before closing, buyer will present a deed to be signed. We are happy to review the deed and negotiate terms, warranties, etc. on your behalf.
- When it’s time to close, we can hold your original deed until the funds are wired into your account. We don’t release your deed until you have confirmed the funds are in your account. We aren’t paid until you are fully funded and completely satisfied.
Our depth of experience with the mineral market, knowledge of the transfer process, and access to thousands of buyers make our ability to broker mineral deals that satisfy our clients second to none.
Contact a mineral rights broker today
Our mineral rights brokers can help you understand the nuances of selling your mineral rights and can help you receive the highest possible price for them. By auctioning your mineral rights among a marketplace of thousands of possible buyers, you can fetch the best deal. Contact The Mineral Auction by calling (512) 698-2802 to begin the process today.