Companies Backing Out

Hi guys! My family, 5 of us, each own a part of the following blocks in Pecos County: East 1/2 of Section 40, Block 8 West 1/2 of Section 41, Block 8 Section 42, Block 8 Section 44 Block 8 Surface estate only: Section 20 Block 8 Surface estate only: South 1/2 of Section 22, Block 8

My sister was successfully able to sell Section 20, 22, and 40 for $75k. But two companies have offered her a similar amount for Section 44 and after she accepted, they have both gone silent before final paperwork. We think there is something wrong with that section perhaps that they uncover when they are drawing up final paperwork.

1- Does anyone know of anything going on in this area that might be scaring buyers? (section 44) 2- Any tips for me–I’m trying to gather offers as well (already contacted two companies who were interested a few months ago but now are not) to sell.

Thank you!

I am not sure about these particular sections. However, there have been articles about the sharp drop in private equity funding out of Wall Street which has contributed to the pricing. I have heard that the mineral and lease flippers are not as readily finding buyers to sell to and so are holding back.

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I think you are right on target. I’ve observed the same, especially with the nonop lease market. As far as minerals in Block 8 of Pecos, that would appear to be a better area. Someone would be interested, but that may take more time, and may be a little less than what companies were paying. The market has definitely shifted, but I’m not sure where it stands currently.