Does anyone need information about selling all or part of their minerals? I often hear about misconceptions and was wondering if anyone needed accurate information in order to make an educated decision. Chris
I don't think he ever let that out. I believe he said his attorney presented the offer from a prospective buyer.
Finnbear, that is correct.
There really are so many things to consider. Many producers are only completing one or two laterals in order to hold the acreage, then move on and do the same thing somewhere else. Incomplete infrastructure, the low number of rigs available per county trying to produce tens of thousands of acres, 640 at a time, and the process taking 4-6 months each 640 acre site. I'm sure nearly all the county will get produced eventually, but it will be a while. I see the benefit of selling part of one's minerals now, and those benefits are more than just monetary. I have dealt with some of the savviest mineral owners and many have said taking a piece of a sure thing now makes sense to them, so they don't have all their acres dependent on only one outcome.
Jeremy, I am not paying anywhere near 4% but at any rate the net result of the highest & best offer taking into consideration the fee netted out is all that matters. If any atty can access the true "end buyers" vs flippers & who will bring a substantially higher offer, then the fee paid inconsequential. I still havent made up my mind on the offer, its very tempting.
I'm not trying to stir up anything with you or anyone else, but I personally am so sick of everyone (attorney's especially) making huge money off of the landowners. KWGD was working on behalf of my father as well and I believe their cut was around 4%. Anyway, they originally brought an offer around $15,600 (if my memory serves right). Unbeknownst to my father, I had checked directly with some mineral buyers on his behalf. At that time, I did not know what company had offered the $15,600 through KWGD. I secured an offer directly for my father of $17,500 and it ended up being with the same company KWGD brought the offer of $15,600 with. So, KWGD was getting my father $1,900 less/acre and wanted to charge some crazy % to do it. Where's the value the attorney added and what warrants such a large payout to the attorney? By the way, my father didn't sell at either offer because we both believe it will go higher. How about the attorneys just charge their per hour rate divided by the thousands of acres they represent instead of a flat %?!. They would still be paid their hourly rate but the landowners wouldn't be bilked out of thousands of dollars. Needless to say, my father terminated the relationship and I'm still sick to think so many landowners are giving away so much money to these attorneys. Think about it, they are receiving way too much for what little service they are providing. To each his own, but these attorneys (in my opinion) are flat stealing from landowners in the sale of mineral rights. What value does the attorney offer in selling the rights? I can't think of any myself.
I work directly for an end buyer. Many of the places mentioned here come to us with offers. We have to turn them down because often they are unrealistic for unproduced minerals. The economics are just not there. If anyone would like a solid offer straight from where the money comes from, send me a message and I will get you a quote.
If the terms of the offer were identical (aside from dollar amount) and buyer was the same and very importantly both offers were very....close in timeframe then you certainly have a vaild point. If the offers were even 2 weeks apart then they could certainly be substantially different. Offers I have tendered on my own & offers thru atty have increased steadily over the past 12 mos. Last offer was a mere 3 weeks ago and was 2,500 less. Apples to apples really is contingent on offers on same day practically. I think it will go higher as well.
How far apart were the two different offers on Dads land?
Agreed on the timing of events, but if the attorney is worth what they are charging then they shouldn't even bring a lower offer to the client. If they have any knowledge (more than just the common landowner) that warrants them getting these percentages for fees then they should know better than to present a $15,600 (my guess is some jumped on that) and then within a week or two negotiated even higher. If the attorneys are worth what they are charging then they should be giving advice to their clients that will result in the best payout. Not bringing offers that might tempt some into signing.
I understand what you are saying but I dont think the atty has insider knowledge on how these offers fluctuate, that would be a huge conflict of interest & this firm has been nothing but ethical & credible for me & everyone I know that has used them for leasing and/or selling. As the play develops, pipelines are planned, wells permitted, sweet spots redefined and ebb & flow of competition amongst mineral buyers, I think the offers can change & do change constantly. I am just looking to get the highest return possible and as of today, they have done better than I have on my own. I still personally think my area (millwood twp) will go higher and at at some point the bird in hand may sway me to sell.
Good luck to you.
I respect everyone's opinion on the subject. It is the same decision someone would be faced with if they won the Ohio lottery. 12 million over 26 years or 4 million now. Some people are happy to have the choice to sell all or part of their minerals now. Some people may not live as long as the well. Some people want a little cash now and they retain part of their acres so they can participate in royalties also. Others are happy with monthly checks once they start. It all comes down the each individual's prerogative. Having a choice is a good thing.
We were offered 7000.00 a acre to sell our 50 acres of mineral rights in Monroe today. It has a well on site. Not sure if this is a good idea or not. After reading what some folks have been offered, It was told that it could happen rather quickly. Anyone have any advice or is this happening to others? Is getting a lawyer involved a good idea? We used bad judgement when we leased did it on our own and we think we should have done things differently. We really have no hard feelings about that but would like to do better if we have a fair chance to.