I received an offer letter from hill country that was much higher than any other offers I’ve received and I’m new to mineral rights all I know is that I’ve always been told not to sell but the lump sum idea does sound like a good idea but I don’t want to do anything foolish anybody have any advice?
I’m lookin for advice about offer letters and to sell or not to sell
Every owner has their own unique situation and reasons to sell or not sell. If you are new to minerals, it would be wise to make sure that you have the information you need to make that kind of decision. Example questions to ask would be: have I recovered any royalties held in suspense (buyers may know about some and want them as well); have I contacted all operators and changed the name from the previous owner to mine in order to receive current royalties (will require title information); have I filed my name and address in the county courthouse in every county where I have minerals; is there pending drilling that is coming (usually why you get offers); what is the value of the offer versus potential future income; do I know the tax consequences of a sale; how does the lump sum compare to the longer term potential payout of the current and future wells; do I have an immediate need to sell; is this the best offer that is available or are there more competitive ones out there? Lots to find out. Most buyers fully intend to make a profit off of a seller, so find out what that profit might be and if you are willing to give it up for a current lump sum. Many offers are low just to see if someone will bite. You also have the options to not sell, sell all or sell part.
Great advice from Ms. Barnes, as always.
The other thing to know is that a lot of the offers in the letters shrink after you contact them, for a variety of excuses.
People on the forum generally say do not sell but everybodys situation is not the same. First you must give state and county range section township where your minerals are located and the help will come good luck !
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