We have 20 acres at (NE/4) Section 27, Township 20 South, Range 28 East. We received a second offer last year and the offer had doubled from the year before. I looked around to see that the property might be worth significantly more than the offer. How do I figure out how much it is worth in today’s market without having to solicit an appraisal? Once we have an idea of its worth, who would we even contact to sell it?
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Do you own all the mineral rights and is the offer for those rights and the land? The only way I know to get a good idea is to have it appraised. If you use an online service like LoopNet it will only value the land and not the mineral rights which may be a big chunk.
An appraisal likely won’t help you. The only way to know the market price of mineral rights is to get multiple offers from the right buyers.
I can look into it for you as we buy all over Eddy County.
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Timothy as a proud member of this forum that is against the terms of service.
My apologies, I was just simply offering to look into it.
Yup, taking it to the market is the way to know what the market price is. That’s not necessarily telling you what’s its worth, just what you could sell it for today to whatever buyers you could figure out how to contact which is often the rub.
Spitballin…
There are 4 DUCs in the N/2 of Section 27. In an 800 acre unit. A DUC in an 800 acre unit is worth about $2.5-3k/NRA. IMO. Plus there is some residual value for other zones that might get drilled.
So take your royalty rate, divide by 12.5%, multiply by 20, multiply by say $14.5k and that’s maybe what it is worth. Assuming you own 20 acres.
So at 25% royalty, that’s 25/12.5 x 20 x 14.5 = $580k. Wildly speculative math! It’s fun for all ages.
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Thank you so much for this info. The 500k is what I figured it to be just by the going rate. Now I need to figure out how to find buyers. Is there a forum for that or an auction site perhaps? Not sure where to look. Would I need a real estate attorney?
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