Looking for the best available means to evaluate the current market value of mineral interest holdings in Lavaca Co.and what would the cost of this service be? Looking for dollar ranges from low to high per net mineral acre. No hearsay numbers, please. All comments appreciated.
All numbers you will get on here or from landmen/lawyers that you may hire are “hearsay”. Lavaca County is big. Its the main problem this board faces, people see numbers in their county and expect big numbers but then get mad when their acreage isnt in the sweet spot for the same high dollar numbers. The current market value for your mineral interest is whatever you are getting per month on current production factored out over 3 years with a sharp decline paired with any filings you may have and whatever someone is willing to pay for it at the time.
Thank you, Bob77 for your response.
I understand your comments and the high expectations some people have about their properties because of where they may be located. My situation is slightly different. We have in “hand” multiple written offers to purchase, with a couple of offers in excess of $6,000 per net mineral acre. I was just trying to understand what the current dollar value range (low to high) market is.
If you have several offers in hand, then you already have a general idea of what your particular acreage is worth on the market.
Our attorney said that a “fair” price is what a willing and informed seller under no compulsion to sell and a willing and informed buyer under no compulsion to buy agree to. (Buyers tend to be more informed than mineral owners since they have the geologists, engineers and market knowledge.)
You can also look in the Directories tab above for Pecan Tree appraisers. They have a tool that acts similarly to Zillow for mineral rights to give a reasonable estimate for what the minerals may be worth from a production point of view. It may not be the same range as your offers, but can be helpful.
Buyers generally offer a price that is based upon a certain number of years of production discounted to the time value of money.
Remember that a sale may trigger capital gains, so you need to know your basis and take that into account. And a large sale may bump you into a different tax bracket, so that is another piece of the puzzle.