Reasons for Selling Mineral Rights

Feb 22

There are many reasons why you should consider selling mineral rights that you own. However, first you have to know that you own these rights, and many people only find out when a landman comes a-knocking offering to buy them. Mineral rights can be passed on from generation to generation with no one being the wiser, and that is a wasted opportunity to make money. If you do know or find out that you own mineral rights on some property, then you should consider selling them for the right price.

If you don’t need cash, it may be better to hold on to your mineral rights, especially if there is some question as to what the right price should be. If that is the case, leasing the rights may be the better option. However, if you can put the money to good use, and your property is in a known “hot zone” for valuable minerals such as Eagle Ford Shale or Haynesville Shale, selling is the way to go.

You can buy something else

With the money you get from selling your mineral rights, you can actually buy more property that will appreciate in value. You can also put aside the money for a college fund or retirement. You can invest in many things by using the money you get from selling.

It may be the right time

If your property is holding oil or natural gas, you should consider selling while the going is good. The market value for such mineral rights can be volatile, so the $100 you can get today may be $20 tomorrow. Selling also reduces the risk that your mineral rights might become worthless when your neighbor turns out to be a dry hole. Of course, the opposite may happen which means your mineral rights value may rocket! However, it is better to make sure and have one bird in hand.

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