Selling your land’s mineral rights can be a highly profitable venture. With oil and gas booming, letting go of the rights to a mineral-rich piece of property can be a boon to your financial prosperity. To ensure that you get the best possible price for your mineral rights, take care to do a little research before putting pen to paper. Going into the transaction with all the pertinent information stands to benefit you greatly.
How Much Are the Mineral Rights Truly Worth?
Proceeding to sell your land’s mineral rights without knowing their true value isn’t going to work out favorably for you. When considering how to sell mineral rights, the first thing you’ll need to do is have the land — and its mineral rights — appraised. Although certain buyers are willing to do this at their own expense, some will expect you to foot the bill for an appraisal. Still, regardless of who winds up paying for it, an appraisal is something that has to happen.
What Kind of Sale Are You Interested In?
When preparing to sell mineral rights, you’ll need to consider which type of sale will benefit you more: one that entails you collecting royalties or one that gives you a one-time lump sum. If you choose the former, the initial lump sum you’ll receive will be much lower than it would have been had you chose the latter. Conversely, choosing the latter means you won’t receive any additional money for the rights following the initial transaction.
How Quickly Do You Need the Money?
Haste can make waste when selling your land’s mineral rights. These rights may be worth a small fortune, so unless you’re in a considerable hurry to unload your mineral rights and collect the money, you’d do well to take your time and weight the various options.
When it comes time to sell the mineral rights to your land, being informed can mean the difference between getting a great deal and getting a price that’s not at all reflective of the land’s true worth. Before entering into a transaction with a prospective buyer, remember to ask yourself the previously discussed questions.