Hey everyone
I wanted to post this for anyone wanting to sell their minerals, surface, or even current production they are being paid on. I just sold some properties via EnergyNet and found it to be the best way to sell minerals, etc... They use an auction setting to list your property and do so for a small commission. I think they usually let the auction go for about 2 weeks. You send them all pertinent documents regarding your property, ie: source deeds, chain of title, old oil and gas leases, how much money you get each month from production, etc... It was crazy, I would log on everyday and see 3 or 4 more "bidders" driving up the price. I guess it is similar to Ebay or something like it that uses an auction setting. It was cool because I set a reserve price and the guy from EnergyNet told me that if I didn't get the price i wanted, then I didn't have to sell- I could keep my minerals or try again and list them on EnergyNet.
I just had a great experience with it and only knew about it because someone was nice enough to tell me about it on mineral rights forum! I'm making this discussion so that hopefully others can benefit by using this way to sell their properties.
Don’t forget to figure in the commission and other fees they charge. That can really reduce your profit
It normally takes a minimum of 6 to 9 weeks from start till your paid which can be a long time for some and then like Susan brought up, they charge 10%. There is also the contract you sign that holds you responsible, or warrant title for like 3 months even if it's a quit claim deed. You either agree to sell and they get a 10% commission or be charged 10% upfront if you don't set a reasonable reserve. I buy mineral rights in Oklahoma, North Dakota, Colorado and other states doing a lot of advertising and have bid on some on energynet that went for $1200 per acre that I pay $2500 an acre for and then they had to pay them 10% or $120 per acre just to list them so they only got $1080 per acre instead of $2500 per from me. I recently bid on some that went for $300 per acre that I was advertising to purchase in that counties newspaper that I am paying $1500 per acre, they sold 120 acres of minerals for $300 per acre minus 10%, they got $36,000 minus 10%, I would have paid them $180,000 and closed the next day so they could have had the cash in 24 hours. Some producing interest will sometimes sell for way more than they should and the buyers may never make any money. Prices on energynet can vary depending on oil prices that day, if you list it takes 2 weeks of due diligence and then one week till it ends and if after 3 weeks of waiting to find out what you'll get the price of oil and the stock market start falling like a few moths ago then buyers and prices can back way off and your stuck. They will negotiate afterwards but that's only if it doesn't meet reserve.