DOES ANYONE KNOW ABOUT MINERALHUB.COM TO SELL THEIR MINERAL RIGHTS? GOOD OR BAD?
DLH:
First, I was not aware that this website existed and after reviewing the site, it appears like a classified adds section of the newspaper. I know of no one who has utilized this type of method to sell their minerals but I would take precautions when negotiating transactions in order to make sure the buyer is legit and does not have a history of problems with mineral owners. Just remember if you do intend to sell, research the matter in detail before you put a price on the minerals.
DLH, I agree with Mr. Mallory. You can market your minerals in any way that seems good to you, but be careful, and always make sure you have certified payment before the buyer has title to your minerals.
The issue with these types of sites (there are others) is that people dont want to put a price. As a mineral buyer, I skip over any ad that doesnt have a price. If I approach you, then I will have a price for you. If you are putting your minerals on the market, then you need to have a price for me.
Its like buying a car. If you go to the car lot, they have a price. If you see a car in someone's back yard that you want, you make them an offer.
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If we are going to use the car sale analogy, be sure to ask alot more than you think your minerals are worth. The pro’s are looking for bargains just like everyone else. Nobody wants to step out and name a price, the seller because he doesn’t know what they are worth and the buyer because he may have got the minerals cheaper by having the inexperienced mineral owner set the price. The mass mailings that are sent out to mineral owners are usually rock bottom offers, at least mine always have been, and I’ve had several that were roughly the same as lease offers I received for the same minerals. Mineral owners should also keep in mind that they may have a million dollars worth of oil or gas in their mineral rights, but if nobody is interested in producing it, your mineral acres are only worth what someone is willing to pay, right now, this instant, which may be only $50 to $100 per acre. It may be 30 years before someone wants to produce what you have. I can think of several situations that could make sense to sell something you otherwise would not, crippling hi-interest debt for one. There are downsides also, to selling minerals. If you own the surface and you sell the minerals you no longer control if it is leased or not. It may be extremely hard to refinance or sell surface property that is subject to a lease. I won’t say don’t sell, but make sure you understand the downside, and don’t be surprised by how little you could actually realize from the sale. Good luck
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