People who possess pieces of land that are rich in oil, gas and other minerals that are in high demand can choose to make good money by selling the property or the mineral rights. Of course, many would choose to hang onto such land, but you might find it profitable for you to sell mineral rights or oil royalties to offset a pressing financial issue. There are professionals out there who can help you with evaluation of the value of the gas and oil royalties or mineral rights.
Some of the benefits you stand to enjoy once you sell the right and royalties, including less worries on market fluctuations, quick money and less uncertainty. It is indeed a very profitable venture considering that gas and oil are always booming and their value will always be high. To ensure that you in the end get the very best prices for the mineral rights, there are a few things that you should remember.
1. Hasty sales can make you lose out
On discovering what their land holds, most people make hasty decision to sell their land mineral rights. Such quick decisions could easily lead to making the wrong decision. It is therefore of importance that you consider how urgently you really need the money you are after. In case it is not as urgent, it is important that you take your time before selling so you can weigh the different options available for you. Compare a few buyers if need be. It is a better way to make good returns from the sale.
2. There are different kinds of sales
When looking to sell your mineral rights, you have the option of collecting a onetime lump sum for the value or you can choose to be getting royalties. Of course the royalties come in small amount, but over a given period of time, whereas in the lump sum option you only get one transaction for what the property is worth; you will not get any additional money for your rights after that. Whereas some landowners would rather have the constant royalty payouts, some would rather get the whole amount probably to invest in something different. Consider what options best serves your financial needs before selling.
3. Appraisal is most important
There is nothing worse than rushing to sell the rights without first taking time to find out what their true value is. When you know nothing about the value, it becomes easy for buyers to take advantage of you. When you have decided to sell therefore, have the land and the mineral rights evaluated or appraised. In some cases you may be required to foot the costs of appraising the land but in some cases the buyer will be more than willing to do the appraisal at their expense. Whatever happens, you must ensure you have it appraised before striking a deal with your buyer. It is the only way you will get the right price for the real value of the land.