buying your first home - what you should know

2 Things To Keep In Mind When Selling Your Mineral Rights

Selling the mineral rights to oil or other natural resources that might exist on your property is a great way to make quite a bit of money, but there are also some considerations that you will want to keep in mind when selling the rights. When you sell your mineral rights to a company, you are essentially keeping ownership of the land but giving a company the ability to mine and extract the minerals and other natural resources from the property. Listed below are two things to keep in mind when selling your mineral rights.

Do Not Jump On The First Offer

One of the biggest mistakes that many people make when selling their mineral rights is getting excited and taking the first offer that a company makes for them. While the offer may seem exceedingly generous, there is a good chance that you may be able to either negotiate a better price or find another buyer who will pay more. The reason for this is that if one company is interested in the mineral rights to your property, then chances are other companies will likely be interested as well.

Instead of taking the first offer, consider contacting other mineral extraction companies in the area to discuss how much they may be willing to offer for the rights. In addition, do not let the company that makes the first offer to try to push you into an immediate sale by putting a deadline on their offer, mostly because this is just their way of applying pressure to get you to accept a lower price.

Do Not Plan On Continuing To Use All Of Your Property

Another thing to keep in mind when selling your mineral rights is that you are not going to be able to continue to utilize your entire property. For example, when you sell the mineral rights to your property, the company that is going to extract the minerals has the right to build equipment on your property to remove the minerals and actually find the minerals. This can lead to extensive pieces of your property being taken up by mining equipment, which can be a bit inconvenient if you were planning on using that space to grow crops or allow your livestock to graze.

However, this is not as bad as it sounds since the company that buys the mineral rights can't typically go around and demolish the structures and other aspects of your property. In addition, the company with the mineral rights will pay you for the land that they are occupying and building on in order to extract the minerals as well as pay for any damage to your land and property. 

Contact your local mineral rights or royalties buyer, such as Appalachian Mineral Partners, today in order to discuss how they may be able to help you sell your mineral rights and how selling may benefit you. When selling your mineral rights, remember to avoid jumping on the first offer and that once you sell the rights you will not have full use of your land.