How to Maximize the Value of Your Minerals
If you regularly receive unsolicted offers for your minerals, you’ve probably noticed that the prices offered are all over the board. Some offers are very high, while others are very low. And these are just unsolicited offers. They’re probably not leading with their best offer. So the question for a mineral owner who is thinking about selling is this: How do you find the highest possible offer so that you can truly maximize the value of your minerals?
(You might also find our Mineral Rights Price Index interesting. Updated monthly, our Mineral Rights Price Index tracks the monthly price changes for mineral rights in West Texas and North Dakota, Wyoming, and Colorado based on hundreds of data points for actual transactions in these areas.)
Different Types of Buyers Pay Different Amounts
One of the main reasons why offers vary so much is that they are made by different types of buyers. The chart above illustrates the different types of buyers that mineral owners will encounter, as well as the types of offers that these buyers usually make.
- The red bars indicate offers that a mineral flipper or other lowball bidder might make – the “I’ll take your minerals off your hands” types of offers.
- The yellow bars reflect “below average” offers that are from mineral flippers and buyers using conservative assumptions.
- The orange bars represent “above average” offers that are likely long-term holders who used middle-of-the-road valuation assumptions.
- The green bars represent “high” offers from buyers who are aggressive in their valuations and likely believe oil prices will go a lot higher in the future. These buyers offer good prices and are likely to hold the minerals for decades.
- The blue bar represents the highest available offer for your minerals. This is the best, most aggressive buyer, and this is the buyer that every mineral owner should try to find.
Finding the Needle in the Haystack
The problem for a mineral owner is that it is extremely difficult to find the very top buyer. In reality, there are hundreds, and in some cases thousands, of mineral buyers who actively buy minerals in an area. Unless you are able to find them all, they won’t have an opportunity to evaluate your acreage and make an offer. And the top buyer is not always the same buyer. Just because a buyer was the highest bidder on one property does not mean that they will be the highest bidder on another property, even if it is nearby. To get the highest possible price, each sale requires a careful search.
How to Easily Find Highest-Paying End Buyers
Wouldn’t it be great if there was a way to quickly and easily find all of the highest-paying end buyers who actively buy minerals in your area (especially the “blue bar” buyer who values your acreage highest of all)?
There is – that is exactly what Shale Marketplace does. After listing on Shale Marketplace (it’s completely free to mineral owners), pre-screened, registered buyers evaluate your minerals and then compete with one another to pay you the highest possible price. Buyer competition between the highest-paying mineral buyers brings the highest prices of all. Contact us today to learn more.
Helpful Resources for Mineral Owners
- Mineral Rights Price Index – Track Monthly Changes in the Value of Mineral Rights
- Mineral Owner’s Guide – How to Sell Your Mineral Rights for the Highest Price Possible
- “How Much Are My Minerals Worth?”
- What Do I Own? Understanding the Differences between Minerals, NPRIs, and ORRIs
- Avoid the Single Biggest Mistake Mineral Owners Make When Selling Minerals
- Mineral Flippers – Who They Are and How to Avoid Them
- How to Get the Most Money for Your Mineral Rights and Royalties
- How Selling on Shale Marketplace Works
- Frequently Asked Questions about Selling