Property value question Howard county


#1

Hello. new to the forum . I have 20 net acres on 161 acres in Howard county that I have been considering selling. The offers in the mail have become interesting lately . They are steadily on the increase. What is the best way to get an unbiased value on these interests ? I have spoken to several oil companies and one landman that wanted 20 % of the sale price but couldn't give me an approx value ?? Also has anyone had any luck selling on US minerals? Any suggestions would be greatly appreciated . The property is NW/4 section 8 block 34

thank you


#2

Welcome Patrick, you have found a wonderful resource to help you through this process. This group and the valuable information I learned here was the difference of selling a portion of my minerals for 12,000 versus the 25,000 per NMA. Beware, you'll likely receive many private messages wanting to buy your minerals by virtue of posting this message. Even through that process, I was able to vet out some honest and candid feedback and guidance. It is extremely important to know what activity is going on in the area where your minerals are located (there is a guy on this site who WILL provide you with the maps/permits for the area of your mineral area - this is pivotal in negotiating the sales price of your minerals). I've always been up front and honest with the company/person who is buying minerals from myself/my family in that I wanted it to be a win for both them and for my family (bigger win for my family than them - but, a win/win). Get as educated as you can before you sign ANYTHING. You will find all the answers you need in this group. GOOD LUCK.


#3

I recently sold 1/4 of my interests in Howard county thru US Minerals and they made it easy for me, and got me more that I was able to get soliciting offers on my own. Welcome to the forum.


#4

I'm happy to be here and thank you for the sound advice Brandi


#5

I will def check them out . Thank you for the help


#6

Patrick - I own minerals very near your tract. That is a good area and 20 net acres is worth a lot as small as it may sound. There aren't any horizontal permits on your tract at the moment but it's likely only a matter of time. My tract in that area is the same way and I get offer letters all the time on that one, too. Anyone asking 20% for a commission is out of their mind and probably won't get you more than you can get on your own, especially net of their fee. I don't have any experience with US Minerals but know others who have used similar services and been disappointed with the offers that came in.


#7

Patrick, This is precisely the connection I was hoping you would make. Marcus is one of the most trusted advisor on this site and truly knows this business. You are in good hands with him in your court. Also, I had a company (out of Austin, Texas) that was similar to US Minerals and as Marcus said - the amount of time/input/% they were charging - I was better off exploring (and educating) myself and came out far better than having them negotiate on my behalf.

Again, wishing you the best of luck! I am thankful you found Marcus! He is one of the MOST honest people whom I've met on this site.


#8

My suggestion is keep it,over time you can make just as much leasing it,not to mention the good possibility of them drilling


#9

Thank you for the feedback Marcus. I'm blessed to have some other minerals as well and it seems most of the purchase offers I get are for this one particular section. I guess that says something. Not always an easy decision to sell an appreciating asset like this. I'm definitely not going to make any hasty decisions. Thanks again for the information!


#10

Hi Patrick, we own minerals in several areas in West Texas, including Howard County. Your observation about the valuation is correct, prices have improved. Some have improved so much that it was time for me to take some money off the table. The thing I always revert back to, is a story I heard about a brother and sister discussing whether to sell their minerals. The sister said, "Dad told us never to sell minerals." To which the brother replied "Dad told us never to sell minerals because they might be worth something someday...today is that day!" Minerals are property, nothing more, nothing less. If you get an offer that's reasonable and it meets YOUR goals, then take it. It is wise however, to remember that there will be tax consequences to deal with. Some can be quite large depending on what your basis (the value of the minerals when you took title) is in the property. As far as selling goes, there are some great companies and individual buyers out there as well as some real stinkers. US Mineral Exchange isn't a horrible solution but you could likely sell for more without them. At the very least, never sign an "option agreement" and make sure you know exactly what you have before you sign a Purchase & Sale Agreement. There are a lot of offer letters going out with HUGE numbers that simply aren't real. The fine print allows them to adjust the purchase price later based on what you own. 99.99% of the offer letters that you get are at best a guess at what you own and they are always inflated.


#11

No doubt keeping it would be a good option for my children. I am fortune enough to have other property to leave them. I need capital to invest in another business that I own or believe me I would not even be thinking about selling. But I'm still weighing my options. Thanks for your suggestion


#12

thank you Brandi!


#13

Thank you and good points Texas Owner. When is the right time to sell ? Depends on the individual. An investment portfolio can be very different for someone in their 30's and 40's as opposed to later in life , 60's and 70's. None of us know how much time we really have and they say can't take it with you. The 2018 long term capital gains tax laws are pretty much the same. If you have decent income for the year you will likely pay 15 or 20 % plus ? If you make under 40K then zero according to my CPA. So all important things to consider . The more contacts I make to individuals and companies the better the offers. So headed in the right direction .


#14

Brandi has the right idea.
What township? Every block 34 has a section 8.
In western Howard, don’t sell for less than $125,000 per net mineral acre.


#15

My siblings and have an interest in NW/4 Section 27-32-3N T&P RR Co. Survey Borden and Howard County. If I look at a map, this area is in the southeast corner of Howard County. We have been offered $10,000 an acre to sell. I have no idea if that is a good value or not? Can anyone help me with this problem?


#16

I think you have your directions mixed up. Section 27, Block 32, T3N is in the north part of Howard County. It does border Borden County.


#17

Your correct. I was just studying the map again and realized my mistake. Do have any information regarding the value per acre or can you suggest someone that might now?


#18

Depending on how successful wells around you are you could get 5000 nma leasing it. Depending how many acres to own would also be a factor.


#19

I am in eastern Howard trying to sell for 20 to 25k a acre, I cant find a buyer, the 125k is not obtainable. You cant get close to that number. If I could even get 25k I would sell half my interest


#22

I have 30 acres (NW/4) of section 43, Block 30, Township 1 North…with mineral rights currently leased to Encana Oil and Gas until May, 2020. I have been getting multiple offers to sell and have no idea of what the rights might actually be worth. I’m inclined not to sell. But I would like to know the value of what I have. And also would like to know what is a reasonable amount to be offered for an extension of a lease. Appreciate any info you can give me.