If you would like a mineral rights valuation, we can help! We work with mineral owners from all over the country to help them with mineral rights valuation. If you own mineral rights and are wondering how much it’s worth, this guide will walk you through everything you need to know about mineral rights valuation. If you want to know how much your mineral rights are worth, fill out the form at the bottom of this page.
About Mineral Rights Valuation
Are you searching for someone who can provide you with a mineral rights valuation? If so, it’s important that you understand a few things about valuing mineral rights. Do NOT pay a service that values mineral rights to give you some idea of how much they could be worth. Here are some facts about mineral rights valuation:
- Exact Numbers: There is literally no one who can give you an exact value of your mineral rights. The reason is simple. Unlike the housing and stock market where you have thousands of data points to tell you the value, and each property is inherently similar, mineral rights do not work this way. With mineral rights, nearly all sales are done in private and there is very little public information available.
- Mineral Rights Type: The value of your mineral rights are going to be influenced by a number of factors. The biggest factor in mineral rights valuation is whether your mineral rights are producing or non-producing. If you are currently receiving royalty checks for your mineral rights, you have producing mineral rights. Producing mineral rights are easier to value for a number of reasons.
- Non-Producing Mineral Rights: It is extremely difficult to value non-producing mineral rights because every property is different. Without oil and gas production, predicting how much your mineral rights could sell or lease for is very hard. The only real way to find out the value of non-producing mineral rights is to put them up for lease or sale and see what the market is willing to pay today.
- Producing Mineral Rights: Since there is an amount of money being paid each month, it is easier to value producing mineral rights. You can do this by taking the amount you receive and multiplying it by 4 years to 6 years. Your mineral rights will likely fall inside this range, but for a number of reasons could fall outside of this range as well.
- Timing: A lot of mineral owners make the mistake of thinking their mineral rights are worth $X because someone they know who is nearby got $X. However, timing can play an extremely critical role in the value. We’ve seen instances where companies were paying $5,000/acre to lease, and then 3 months later they won’t pay anything due to poor performance of wells in the area. On the flip side, we’ve seen areas where they were paying $250/acre, and then started paying thousands per acre months later because the area proved more successful than they thought!
- Location: The location of your mineral rights is extremely important in determining the value. Another common mistake mineral owners make is assuming their property is worth as much as their neighbor got. No two properties are ever the same, even if they border each other. You could be 1 mile away from another property that was leased and yours could be worth significantly more or less. Do not base the value of your property on what your neighbors got. You could be asking too little, or you could be asking for an amount no one will ever pay.
Best way to determine Mineral Rights Value
There is only one true way to determine the value of mineral rights, and that’s by placing your mineral rights on the market for sale. To get an accurate value for your mineral rights, you want to place your mineral rights for sale or lease in a marketplace that ensures multiple buyers will compete. By doing so, you are making sure that mineral rights buyers from all over the country can make a bid, which ensures that you will get fair market value for your property. By listing your property online with a company like US Mineral Exchange, you give yourself the best opportunity to determine the true value of mineral rights.
Free Consultation
If you own mineral rights and have questions, fill out the free consultation form below. We can help you with the following questions:
- Mineral Rights Value
- Evaluate whether you have a fair offer to sell mineral rights
- Answer questions about selling mineral rights
- Understanding Market Value of Mineral Rights
- + Any other questions related to mineral rights!
No matter what question you have regarding your mineral rights, we can help! We usually respond to your inquiry within 1 to 2 hours!
Whether you want to sell mineral rights, determine mineral rights value, or simply have some basic questions regarding your mineral rights ownership, fill out the form and we will quickly be in touch.
