New here so please excuse ignorance! My mom owns 7.5 NMA. An offer has been made and she would like to sell. How can I best understand fair market value? My assumption is that someone will buy this from her and will turn around and make $$$$$ but she’s fielded offers for years and is now inclined to sell. Any thoughts or resources for more info much appreciated. I don’t know if it’s appropriate to quote the offer price or firm here so I’ll hold off for now. Tract: lots 3&4; E/2 SW/4; SE/4
Hi
As many folks will tell you, the best way to judge the market value is to market it to multiple buyers. Easier said then done without help, probably.
I am assuming she is leased (to COG, I presume) at 25% royalty. And thus her 7.5NMA are 15NRA. I would expect a fair offer to her to be somewhere north of $225k but less than $300k.
Its very good place to be geologically, but the 2nd BSpring has already been produced and I don’t know that COG is rushing out to drill any more 1 mile wells after the Dominator unit issues. So those things kind of limit the high-side IMO.
Random stranger on internet, so grain of salt.
Good luck.
Yes, I would expect whoever is offering to buy it would sell it to some bigger fish at some point. That’s just how things go.
This is hugely helpful to verify that we have an offer in the range. Strangers on the internet are helpful!
I know from our work with other mineral owners that there are several top mineral buyers in this area. If they aren’t already, it is in your best interest to get them competing against each other. As NMOilBoy said, that’s really the only way to assure yourself you are getting the highest offer.