How do I know if I’m getting fair offers on Mineral Rights if I’m looking to sell?
That is a complicated question. There are multiple threads on the forum regarding that topic. Before you consider selling, you need to understand what you have, where it is, how many net acres you have and at what royalty if producing, know which ones are not producing, capture any unclaimed royalties or pooling bonuses and find out if there is pending drilling. In my experience, most of my offers to buy have been slightly lower than what my appraised value was. There are reasons for that. Some buyers want to buy and flip, so they are leaving room for a profit for themselves in the flip. Others want to buy and hold. Others just put out an offer to see if an uninformed owner will bite. You need to understand your cost basis of your minerals because you may have to pay capital gains taxes. So lots of things to find out. Many offers have room for negotiation. Some don’t.
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Paying capital gains taxes have been a great way to save on total taxes for a long time, but the current administration wants to change that. I would say for most folks capital gains taxes are less than regular income taxes, state or federal.
You’ll have to somehow find out what mineral rights are going for in the area. In West Virginia, each county is going to command a different price. Even inside the county there will be different prices. Marion County, for example, has the west end which has desirable mineral rights, and the east end where you can’t get anybody to even talk to you about mineral rights. If you can find someone who’s familiar with your area it will be well worth your time and money to talk to them.