One thing you’ll quickly understand as a mineral owner is companies want to buy your oil and gas minerals. The number of offers you will receive can be substantial, so knowing how to handle all of them is important. Most of these unsolicited offers to sell your mineral rights will be legitimate, but not necessarily beneficial for your bank account. Here’s what you should know about these offers and how to make the best mineral rights investing decisions.
Common Forms of Unsolicited Offers
There are three main types of unsolicited offers for your oil and gas minerals to be aware of:
- Brokers – A broker may knock on your door with an offer to buy your mineral rights. These brokers are going to be pushy and pressure you to make a decision right away or at least within 48 hours. On the other hand, they are typically motivated to complete a transaction so they will provide one of the most competitive offers.
- Mail offers – You may get multiple letters in the mail in any given month. These letters make it easy for you to sign over your oil and gas mineral interest, but the catch is it will most likely be well below market value.
- Phone offers – When someone calls you about selling your oil and gas minerals, they are usually interested in your property specifically, rather than sending out hundreds of mailers to mineral owners in the area. You can also expect to be pressured into making an agreement over the phone, but the value offered could be somewhat favorable as well.
Make Sure You’re Getting Maximum Market Value
As a mineral owner, one of your main goals should be to get maximum value for your minerals when you sell them. Unsolicited offers are attempts at purchasing your oil and gas minerals off-market, which means there is virtually no competition. Most of the time these offers will be well below market value, so it’s usually best to hold off on entering a deal unless you are desperate to make a sale.
Should You Take Unsolicited Offers Seriously?
When it comes to mineral rights investing, you have to take every legitimate offer seriously. It may not be the best value or the right fit, but every offer gives you a chance to leverage other future offers if you’re in the market to sell. When you are ready to sell, always get multiple offers and evaluate them closely. Keep the unsolicited offers handy, since you could be put in a position where you can make a counteroffer that’s more beneficial to you once you have other options.
At Eckard Land & Acquisition, we work with investors to ensure they get top market value for their oil and gas minerals. We are happy to evaluate any unsolicited offer you receive for your mineral rights and provide advice based on your current and future needs. You never know when you’ll receive the offer that fits your needs perfectly, so contact us at any time for expert advice.