inherited mineral rights in texas

Tag: inherited mineral rights in texas

It seems we can’t find what you’re looking for. Perhaps searching can help.

Name-Icon

Venergy Momentum is a land, mineral and royalty management company specializing in helping individuals, families, family partnerships and/or trusts manage their current land, mineral and royalty interests.

We are experts in title, leasing, and the acquisition and divestiture of mineral and royalty assets and operated and non-operated working interests.

Location

3300 Bee Caves Rd Suite 650 #110,
Austin, TX 78746

Many of my clients want to know how much their mineral rights are worth, so they ask if I can generate an appraisal to give them this value. What they are really looking for is called a Current Value Appraisal. However, before we explain more about current value appraisals, it’s first important to understand there are really, and truly, only two types of appraisals – Current and Retrospective.

Retrospective Appraisals 

Retrospective appraisals will give you the value of your assets at a time period in the past. They are necessary for individuals who have sold inherited mineral rights, or are thinking of selling their inherited interests. If you have sold your inherited interests, and you did not get a retrospective appraisal done by a licensed and certified Reservoir Engineer, then you could face significant tax liabilities. Watch our short video to learn more about Inherited Rights and Your Taxes.

Current Appraisals

Current appraisals give you the value of your assets in the present with possibly, a very small hint of very near term future value. They are necessary for individuals who are planning to transfer their interests into a trust since the trustee will need to know their current value.

However, some mineral owners simply want to know how much their assets are worth today.

They misunderstand that paying a company to generate a current appraisal for this objective will not reflect the current value of their assets because of two reasons that are very unique to the oil and gas buyer market:

  1. Mineral and royalty buyers value assets differently, and sometimes very differently.
  2. Something is only worth what someone is willing to pay for it. Value is in the eye of the beholder, or they could also be privy to insider, non-public information.

These two reasons are why it’s best to test the mineral and royalty buyer market in real time by introducing your asset for sale. For more information on how this is done at Venergy, check out Preparing Your Asset for the Buyer Market – It’s More Than What You Think.

Future Value Appraisals – Is this a thing?

Some clients have also asked me for a future value appraisal. Sadly, and honestly, there is no such thing. There are too many factors at play to be able to provide a future value appraisal with any level of certainty or accuracy. Future value appraisals are simply a guesstimate and based on a lot of what if’s, so they’re not very useful. We do not offer this service and you should question if someone is charging for this service.

Does Marketing to Buyers Really Work?

As someone who has been in the industry for over 15 years, I can tell you it is the very best way to determine what someone is willing to pay for your asset and consequently, what it’s worth. Period.

I’ve tested the buyer market on many deals from my private clients, including those who were at first, adamant on not wanting to sell, but they allowed us to test the market anyway. They were quite surprised with the offers we received and they ended up changing their mind and selling after all! 

It just goes to show you don’t know something until you do, and the outcome can be shocking to say the least.

Selling Minerals Requires Knowledge and Industry Expertise

Mistake #1

Some brokers, and mineral and royalty owners alike, seem to think all they need to do is pass along to a few buyers limited information such as one month of royalty statement(s) and they’ll get a top of the market offer. 

Speaking from experience, this is not enough.

This methodology is like marketing a car or a house and expecting someone to pay an above market price without first seeing it in person, taking a test drive, or having a mechanic look under the hood without any up close and personal attention. It’s simply a crazy, and irresponsible, way to treat your assets and not to mention, can put you at risk of accepting low-ball offers from buyers because you didn’t do the proper due diligence.

Mistake #2

Another component integral to a successful outcome when selling mineral interests is to have a wide variety, and a large network, of end buyers to bid on your asset. This will ensure that we have thoroughly tested the market and received a wide range of values.

I guarantee the range of values that come back will be very different. Of course, there will be an average, but there will also be outliers of high and low offers on both ends of the spectrum.

You want to test the market with as many end buyers as possible! Would you trust a scientific study that had only 5 participants? Absolutely not. The same goes for marketing your asset. It’s impossible to obtain a good value for your assets if you only approach a few buyers to see what they will give you.

We have over 300 end buyers in our network that we market to, thereby giving us a wide range of offers to evaluate and consider. I’ve had many instances where one buyer may give us a low offer and another one exceeds that by over 200%. It’s just crazy how different a buyer’s value can be from one to the next. Additionally, just because a buyer is the top offer on one deal, doesn’t mean they will have the best offer on the next. Market timing is very important, but there is also “buyer timing”, which is a whole other thing in itself.

Professionals discuss mineral interest strategies and the buyer market around an oil pump jack model in a corporate office setting.
Strategic Planning for Mineral Interests: Expert Dialogue at Work

Conclusion: Testing the Buyer Market Works

If you are wondering how much are my mineral rights worth, I hope you have found clarity and a better understanding about selling mineral rights value. Testing the market with a trusted company like Venergy is by far the best way. We have the expertise and industry contacts to obtain top values for our clients. Read our testimonials and 5-star Google reviews.

If you need help understanding what you own, are looking for guidance on what to do with inherited mineral rights, interested in our retrospective mineral appraisal services, or have questions about selling mineral rights, schedule a complimentary consultation with us today.

Hours of Operation:

  • Mon: 8AM–5PM
  • Tue: 8AM–5PM
  • Wed: 8AM–5PM
  • Thu: 8AM–5PM
  • Fri: 8AM–5PM
  • Sat: 11AM–3PM
  • Sun: Closed

QUICK LINKS

Reach Us

Phone: (713) 855-9548

Questions?: Schedule a Consultation or Email us

Facebook Linkedin Youtube
BBB-logo-horizontal-online-PNG
5-STAR-RATING_TP

©2024 Venergy Momentum –
🚀 Powered by SEOLEVELUP, LLC Website Design SEO Company

Orange-Icon
Logo

Copyright © 2022 Venergy Momentum All Rights Reserved.