Our company is focused solely on helping mineral owners like you! Our blog is a great resource for mineral owners in the Marcellus who want to learn more about their property. Whether you want to sell mineral rights or simply learn more about mineral rights value we can help. Our goal is to help mineral owners make informed decisions. With our experience in the oil and gas industry we felt mineral owners needed a reliable source of information. The articles we write help keep mineral owners up to date on what is happening in Ohio, Pennsylvania, and West Virginia.
Sell Mineral Rights
When most mineral owners locate us they are searching for information on selling mineral rights. Prior to selling mineral rights you should carefully consider all of your options. There are a number of different ways to sell mineral rights. The value you get will depend a lot on how you sell mineral rights. It’s important to make a smart decision that will lead to the best price for your family. If you want to sell mineral rights in Ohio, Pennsylvania, or West Virginia, our blog will be an extremely valuable resource to ensure you get the best price.
How to Sell Mineral Rights for Maximum Value
The key to selling mineral rights in Pennsylvania, West Virginia, or Ohio is about exposure. Many mineral owners end up selling mineral rights far below market value. They do this because they reach out to a few buyers and hope they get a good deal. The common assumption is that most mineral buyers will pay a similar price. This is not correct! Every mineral buyer evaluates your property differently. This leads to offers that will be all over the board.
The key to getting the best price is getting exposure to thousands of mineral buyers. When you get thousands of mineral buyers competing for your property this increases the value for you.
The most common mistake we see mineral owners make is selling on their own. When you sell mineral rights on your own you are making a huge mistake. When you have a good property, you will get unsolicited offers in the mail or approached directly. When you accept one of these offers, you miss out on the chance to let thousands of other mineral buyers bid on your property. This would be akin to having someone drive by your house and make an offer, and you quickly accept before putting it on the MLS to ensure the best price. Do not fall into this trap!
If you want to sell mineral rights we highly recommend listing at US Mineral Exchange. The reason is simple. Listing at US Mineral Exchange is like putting your home on the MLS. It alerts mineral buyers that your mineral rights are for sale. These mineral buyers then come in and make bids which increases the price for you. Competition is truly the only way to realize the best price. Before you sell mineral rights, get competitive bids and ensure that you accept the best offer.
If you do decide to sell mineral rights on your own, another concern is flippers. There are a lot of “mineral buyers” who have no money. They will put you under contract for 90 days and then try and find a buyer. At best, they waste your time. At worse, you sign a contract to sell mineral rights at $3,000/acre and they find a buyer at $6,000/acre. You just gave them a 100% commission! Don’t fall into this trap and be cautious of working with mineral buyers unless you have a lot of experience with purchase and sale agreements.
Mineral Rights Value
Another common question we get is about mineral rights value. The mineral rights value in West Virginia, Pennsylvania, and Ohio will vary. Even within these states, moving from one county to the next could mean very different pricing. A lot of mineral owners assume that the value of mineral rights is like a home. Each home may be different, but the price is generally the same. This is not correct! The value of mineral rights varies even for properties that are literally right next door!
The reason that mineral rights value varies so greatly is due to how many factors play a role in value. For example, the price of oil, your lease royalty rate, how many wells are drilled, who the operator is, and what production in the area looks like are all key factors. Each individual factor could swing the value 10 to 20%! This means estimating mineral rights value in West Virginia, Ohio, or Pennsylvania is extremely difficult or impossible.
Before we get into estimating mineral rights value, it’s important to understand that the estimates below are estimates. The only way to know what the value might be is competitive offers. The offers you may already have in hand are a good ball park estimate, but you need competitive offers to verify the highest value possible.
Estimate Mineral Rights Value
While offers are the best estimate of value, we can do some quick rule of thumbs to determine what mineral rights might be worth. The value is going to depend on many factors, but the status of your property is a big part of it. Mineral rights are either producing, non-producing, or leased but non-producing. Each situation changes the value significantly. Below we will break down an estimate of mineral rights value depending on the status of your property.
Producing Mineral Rights Value
If you have producing mineral rights, this means you get a royalty check every month. Estimating mineral rights value for producing royalties is more straight forward. Find the average income from the last 3 months (not longer!) and then plug it into the calculator below. Your mineral rights will be worth about 4 years to 6 years times the average monthly income you get. Keep in mind that there are many factors that could cause the value to fall above or below this range.
Leased but Non-Producing Mineral Rights Value
As a good rule of thumb, leased mineral rights will sell for about 2x to 3x the lease bonus amount. If you have leased mineral rights and you have an active lease, but you do not have royalty income, you have leased but non-producing mineral rights. When you signed the lease agreement, you would have been paid a lease bonus. Let’s say you were paid a $25,000 lease bonus. You could estimate mineral rights value to be in the range of $50,000 to $75,000 if you were to sell these mineral rights.
Non-Producing Mineral Rights
If you own mineral rights that are not actively under leased and you do not get royalty income, you have non-producing mineral rights. With the current oil and gas market, these types of mineral rights have little to no value at all. Mineral buyers do not want to buy mineral rights with no lease and no royalty income because there is typically no upside. If you don’t ever lease the mineral rights you get no income from them. You basically are stuck waiting to get leased and that could take years or decades to occur.
Recommended Content from Marcellus Mineral Owners
If you own mineral rights in Ohio, Pennsylvania, or West Virginia, we highly recommend checking out the content at the links below. This is some of our most popular content. It will help you make an informed decision about selling mineral rights. This information will also help you get a better understanding of mineral rights value.
If you have questions, fill out the free consultation form at the bottom of this page. We are happy to help answer your questions!
Sell Mineral Rights
If you want to sell mineral rights you’re in the right place. Marcellus Mineral Owners is a trusted resource among mineral owners who wish to sell mineral rights. Our focus is on helping mineral owners sell mineral rights for maximum value. As you begin the process, make sure to carefully read the important topics found on the left side of the page. These topics will guide you along and allow you to sell mineral rights for maximum value. If you’re ready to sell mineral rights, fill out the form at the bottom of this page. One of our specialists will respond quickly.
Why did my Royalty Checks go down? Have you found yourself wondering why did my royalty check go down? If so, you're not alone! We've been getting a lot of recent questions from mineral owners who wonder why their royalty checks are decreasing value. Unfortunately, you are feeling the affect of the price of oil dropping to record lows [...]
Offer to Sell Mineral Rights in the Mail If you received an offer to sell mineral rights in the mail, you should proceed with extreme caution! Before accepting any offer, it's important to know exactly what you're getting yourself into. This free guide will help you understand what these offers are and some alternative options. About an offer to sell mineral [...]
Mineral Rights Broker Are you looking for a mineral rights broker? If so, this article will help you find the best mineral rights broker. In addition, we'll help break down all the important components of finding a mineral rights broker. After reading this article, you'll know what to look for and be able to find the best mineral rights broker for [...]
Best place to sell mineral rights If you own mineral rights, you may be interested in finding the best place to sell mineral rights. . We'll cover everything you need to know about selling mineral rights. This free guide will help you figure out how to maximize the value when you sell and then tell you the best place to sell mineral rights. [...]
Sell Mineral Rights You've made the decision to sell mineral rights, but how exactly do you do that? We'll walk you through all your options to sell including our recommendation at the bottom. Carefully consider your options when selling your mineral rights so you can maximize the value of your minerals. Important Tips to Sell Mineral Rights When you decide you want [...]
Mineral Rights Value
If you want to learn more about mineral rights value Marcellus Mineral Owners can help. We help mineral owners understand what their mineral rights might be worth before selling mineral rights. Below are some of our most popular articles related to mineral rights value. You can also check out all of our mineral rights value articles by looking at the summary page to see all posts. If you want to learn more about mineral rights value in Pennsylvania, West Virginia, or Ohio, we can help! If you still have have questions about mineral rights value do not hesitate to use the free consultation form at the bottom of this page.
Why do royalty checks fluctuate in value Do you ever ask yourself why do royalty checks fluctuate in value? You're not alone! A lot of mineral owners wonder why their royalty checks change so much from month to month. There are a lot of reasons your royalty checks can change in value, but we can help you figure out why. If [...]
How to Value oil and gas Royalties If you have been considering whether to sell royalties, you're probably trying to find out how to value oil and gas royalties. Your royalties could be worth a significant amount of money if you decided to sell royalties. We'll walk you through everything you need to know about how to value oil and gas [...]
Mineral Rights Value in West Virginia When you need to determine mineral rights value in West Virginia, it can be difficult to find an exact value. The reason is that mineral rights value is not recorded publicly so there is no way to find the value for your property. The reason is that oil and gas companies wish to keep this [...]
Mineral Rights Value in Pennsylvania If you're trying to find mineral rights value in Pennsylvania, it can be difficult to know where to look. Unlike the housing market where you can easily see what your home may be worth, mineral rights leasing and sales prices are not recorded publicly. This can make finding out the value of your mineral rights very [...]
Mineral Rights Value in Ohio Are you trying to determine your mineral rights value in Ohio? Figuring out how much your minerals are worth can be a tricky process. The reason is that there is no "Zillow" of mineral rights and there is no way to determine the exact value of mineral rights online. You may assume that you'll find this [...]
Marcellus Mineral Owners – A Trusted Source for Mineral Owners
No matter where you are in the process, Marcellus Mineral Owner can help. We have a reputation in the industry for providing mineral owners with clear information about their mineral rights. Whether you want to sell mineral rights or learn more about mineral rights value, reach out to us if you have questions.
We love hearing from readers! If you have questions about anything related to mineral rights ownership, simply fill out the free consultation form below. We’ll quickly reach out and help answer your questions.