When I get an offer, I always ask myself…
“What do they know that I don’t know?”
“What kind of profit are they going to make off of me?”
“Do I need to sell, or do I want to hang on and make that profit instead?”
“What time frame am I looking at?”
“Do I need the money now for something really important or can I wait for future value?”
“What pending activity is in the area and when will it happen?”
“What if there are going to be more than one well? Would that change my mind?”
In my experience, all offers that I have received have been lower than what the minerals were worth based on an engineer’s appraisal of present and future value.
I am at the OK NARO convention today and just came out of a session on the valuation of minerals and the speaker said pretty much the same thing. “All offers to buy are low.” Pretty much validates my experience. Maybe using the word “all” is too expansive on both our parts, but I could safely say the majority of offers I have received have been low.
Each family has to do what is best for them. If you need to sell, then get at least three offers from legitimate firms. And ask for more than the first offer.