Did you get a letter in the mail offering to buy your minerals? It happens all the time…unsolicited offer letters somehow make their way to a mineral owner’s mailbox. How did they know you owned minerals? Do you really own minerals? If you do, what are your minerals worth? These are all common questions that property owners ask when they receive these surprise offers.
There are hundreds of mineral buyers in the U.S., but to know whether an offer is fair is an important consideration. It’s important to be informed! Many mineral owners end up accepting an offer for less than their minerals are worth because they don’t have enough data to make an informed decision.
Be Informed, Get More for Your Mineral Rights
Many people who own land just assume they own the minerals. And many minerals owners in the U.S. do not know they own minerals. But if you received an offer in the mail, there is a “chance” you own the minerals. Please, do not sign and return anything without getting expert advice. Ask yourself:
Was there a mineral deed attached to the offer letter?
Was there a draft (looks like a check) attached to the offer letter?
Did the offer letter say that the buyer would have 30 or 45 days to examine the title before paying you?
To find out if you own minerals, you should start by contacting the county clerk in the county where you think that the property is located. If you live on or near the property, you can visit the courthouse to search the records.
Here’s what you should know about unsolicited mineral offers:
The Deed: If you sign it and return it, you have just transferred the title. A deed should be signed at closing when you are paid. The Bank Draft: I might look like a check, and you will be tempted to take it to the bank. But your banker will tell you that the funds are NOT immediately available. You will learn that it MIGHT be paid in 30 – 45 days IF the buyer pays it off. Due Diligence: It is common that once you have agreed in writing to a purchase price, the buyer will have 30 – 45 days to examine the title to be sure you own the minerals. If you accept a low-ball offer, then during the due diligence period, your buyer may find another buyer. Your buyer might pay you $10,000, then find someone who will pay him $100,000 for your minerals. That $90,000 profit they kept should go in your pocket. As a mineral owner, these decisions can be life changing. Do not be in a hurry. Consider consulting with a local mineral rights expert who can assist you with determining an accurate value for your mineral rights. LandGate can refer you to an expert! An expert should be able to:
Help you gather all the documents needed to understand your ownership
Provide buyers with a detailed valuation of your minerals to assist in their offer
Market your minerals to the mineral buying industry to get you the most money
Work with you from the time you accept the highest offer and until the deal is closed and you are PAID
The best way to determine the true value of mineral rights is to enter the asset into a competitive marketplace where buyers are competing among each other. LandGate's online marketplace is completely free, and creating a listing starts by generating your free property report containing resource lease and sale estimates on our map:
