Mineral Valuation
Over the past 15 years, mineral and royalty interest values have skyrocketed as this asset class has become highly sought after by investors.
Today, the old adage of “never sell your minerals” has all but started fading into history as individuals, families, family trusts, corporations, etc. have noticed the value of these assets and how easy it has become to buy, sell, and trade.
Why is it important to get minerals and royalties appraised?
When buying and selling real estate, an appraisal is always required and buying and selling minerals and royalties is no different.
After all, they are also considered real estate.
It’s absolutely imperative to have an appraisal of your minerals or royalties done, especially if any of these reasons apply to your life situation.
If you own minerals and/or royalties and haven’t appraised your assets in over two years or not at all, we’ve outlined 11 Smart Reasons Why You Should Get a Mineral Appraisal:
Financial Needs
There are countless ways to make your mineral and/or royalty divestment work for you.
With the power of a Venergy appraisal in your hands, you can make intelligent decisions on what to do next. Venergy knows the pace and direction of the top market buyers so if you decide to sell a portion or all of your interests, you can use the extra cash flow to:
- Pay off debt
- Pay for college
- Build your dream home
- Open your own business
- Travel
- Retire, and so much more.
Life Transitions
Transitions in life are inevitable.
As we experience the joy and excitement of building our lives with those we love, we sometimes aren’t able to hold it tight forever or life takes them onto their next journey.
A Mineral and/or Royalty Appraisal is beneficial and smart to have in times of joy and pain. With an up-to-date baseline value or “basis” for your mineral and/or royalty interests, it can be used for:
1. Pre-nuptial agreements
2. Separation of estate/divorce agreements
3. Trust & Will or Estate Planning
4. End-of-Life ownership transfers
With an appraisal, you will know exactly what you own, how much you own, and what it’s worth so you can make well-informed decisions to help prepare for life’s ups and downs.
Tax Abatements
A Mineral and/or Royalty Appraisal could help lower your Ad Valorem tax assessed by the county or parish in which your interests are located.
Or, if you prefer to gift or donate your minerals and/or royalties to a charitable organization, a Venergy appraisal will help you reap huge tax savings when you establish a value of your donated interests.
(Bonus, your appraisal generation costs are also tax-deductible!)
How To Get Your Mineral Rights Appraised?
The value of mineral rights is constantly changing due to fluctuating commodity prices and oil and gas production levels. It also depends greatly on the stage of development your interests are in.
Values of today may not be the same tomorrow.
It is always good to know the most up-to-date fair market value for your mineral and royalty real estate before going through the process of buying or selling.
And don’t forget, an appraisal is vital if you inherited minerals and/or royalties.
Depending on the size and particulars of your asset, appraisals typically take from 3-4 weeks to generate.
We can provide you with all the information you need and deliver to you only the best in strategy and service.
If there is any more information we can provide to you, please contact us and we would be happy to assist in any way we can. And don’t forget to check out our FAQ page! It’s full of Q&A about a range of mineral and royalty topics and scenarios.
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