I need a land valuation for my share of surface and minerals in Section 36-8N-10E. Any advice on how to get that done? My tax attorney has suggested getting a local realtor to provide a valuation, so I'm looking for advice and/or recommendations.
You will have to do the surface land with a realtor and the minerals with a petroleum engineer experienced with mineral evaluations.
If this is for an estate, you need to let them know.
Just for the record 36-8N-10E has quite a few wells pending, so if you are about to sell, you may want to reconsider as there quite a few lowball offers out there.
I can't help you with the realtor, but I do have a good engineer. Friend me with the blue icon next to my name.
This pertains only to mineral properties. Just noticed your question also included surface.
I have to re-evaluate our LLC every year, and have been doing this since 2008. When I started, the advice was to evaluate producing properties based on the last 12 months' royalties (formula was 4 x 12-month oil royalties, 7 x gas royalties, or 6 x mixed). I see that this probably doesn't apply to your question, but offer it for completeness.
For non-producing properties, including for estate purposes, the formula was to multiply the net acreage times an amount-per-acre that was specific to the county. At that time, the Oklahoma Tax Commission offered a table of these values for every county in the state, so the evaluation was easy, though of course it could likely be overridden in special cases, with proper justification. The OTC continued to offer an annual update to this table until Oklahoma discontinued its estate tax (don't remember the year), after which they stopped distributing the table. I think the values may still be available, but only through an expensive subscription which your tax attorney or accountant may have. My approach has been to continue using the last values I have. For Hughes county, the amount was $100/acre. Not giving any advice here; just reporting what I'm doing. I would be happy to use more up-do-date numbers, but only if they're actually made available.
Thank you, Rudy! I had seen that formula online, but didn't know how to value the surface. I did reach out to a local realtor who recently closed a sale on an adjoining parcel. Hopefully he'll respond and I can use those figures as a market comp.
perfect person for the adjoining parcel. That is about as close as you can get.
Can you please PM me with the name of the petroleum engineer you mentioned above that I can contact for a FMV assessment?