If there’s one mistake we see mineral owners make time and time again, it’s selling their mineral rights fair below market value. This actually happens a lot more often than you think. Even though mineral owners can be more informed than ever with the data available on this blog and online, we commonly see mineral owners sell mineral rights below market value. Why does this happen? Simple. Mineral owners do not fully understand the value of multiple offers.
When you sell mineral rights, the number one goal should be to maximize the value of your property. When you decide to sell mineral rights you need to ensure that you get the best possible deal. In the past, mineral owner options were limited because you had to simply trust the people in your area. Today, all of that has changed with mineral rights sales moving online. The reason selling mineral rights online makes more sense is because it gives your property more exposure. Literally thousand of mineral rights buyers will have access to view your property and make bids to purchase your mineral rights. The value of multiple offers is that each of these buyers knows they are competing against one another. They can’t give you the lowest possible price!
Why Mineral Owners Sell Below Market Value
There are a number of reasons mineral owners sell below market value. Here are the most common ones that we see:
Lack of Information: Even with a vast amount information online, mineral owners are still not informed about their mineral rights. They don’t take the time to see what their options are for selling mineral rights and end up selling below market value.
Distrusting Web Based Services: For many, putting your property online can seem like a risky proposition. Will hackers steal the information? Will someone take advantage of me? While not all services are created equal (we recommend US Mineral Exchange), there is very little cause for concern. There are many reputable companies out there who will protect your information and ensure you are fully protected.
Working Locally: When you sell a home, you call up a local real estate agent. The reason is that they know your area, they know the market, and they know what the value of your home is worth. With mineral rights, it’s actually the exact opposite. Local brokers have a limited network and typically only know what people in the area are paying. When you work with a local broker, you don’t get exposure to some of the biggest mineral buyers in the country who may be paying significantly more for properties.
Biggest Mineral Owner Mistake
Accepting the First Offer: The worst mistake we see mineral owners make is to accept the first offer they get. A bird in hand right? Wrong. There are a LOT of companies out there who prey on mineral owners by sending letters in the mail or talking with you directly and hoping you’ll decide to quickly sell with them. What these mineral owners are failing to recognize is the value of multiple offers. When you get multiple offers, it allows you to evaluate all the offers and determine what the true market value is.
How to Sell Mineral Rights for the Highest Price
Plain and simple, there is no excuse for not getting every dollar you deserve when you sell mineral rights. The best way to do this is by getting your property in front of a huge network of buyers. Just like your local realtor is going to be your best solution to sell a home, an online marketplace is your best solution to sell mineral rights.
We recommend you sell mineral rights at US Mineral Exchange because they will get your property in front of a huge audience of buyers. As you begin the process of deciding whether to sell mineral rights, make sure you avoid the common mistake that many mineral owners do of accepting the first offer you get. The value of multiple offers is that you ensure you get fair market value for selling mineral rights or royalties!