Advice from anyone in a market where mineral rights reserved is common

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Real Estate Agent with Friestad Realty

In a previous post, I mentioned the changes that are beginning to occur in our areas Bossier and Caddo Parishes and surrounding areas.  With the fever going on about the Haynesville Shale and landmen everywhere, our residents are signing mineral leases rapidly.  Which of course will effect our real estate market, I am just not sure how and for how long.  Can anyone out there who has experience give me some insight as to what our market may see in the near future and also in the long run. 

I'd like to give my clients the best information possible, so any advice or insight would be great.  I want them to be able to buy and sell their homes without much stress.  I guess in the future it may be a bonus to selling a home as "home for sale with mineral rights". 

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Keller Williams 'Rainers
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Tags:
bossier city real estae
shreveport real estate
mineral rights
haynesville shale
real estate market
friestad realty
homes for sale

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Rainer
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Sheila Reeves
Allen Tate Realtors

Kerry, although not an experrt in mineral rights, I do know that many areas in Texas have large pockets of natural gas underground.  People who own this land would be reducing their property value by huge amounts and some cases, not be able to sell it were the gas rights sold away.  I had clients there who were thinking about moving here and decided to stay in Texas after he began having some serious health issues.  They had land that was extremely valuable because of those gas rights and guess they decided to sit on it for awhile too.  They had already made the decision not to sell away those rights.

I would think, depending upon whether the mineral rights were signed away forever, or for a period of time would make a difference.  It would be imperative to have a copy of that agreement to determine what the time frame on the lease is and what mineral is there and how it/would be mined.  Depending upon how much value they are receiving for how long might also decrease their property accordingly, as would some types of mining.

As far as helping your clients sell without much stress, that may or may not happen.  The majority of clients I have worked with have been absolutely teriffic.  There were a few that it became clear it working with some people would be very stressful, a few of which I chose not to work with.  Sometimes you have to make that decision.  Sometimes the stress is generated by the other side of the transaction.  Stay cool and don't let it get to you.  I always have an internal diaologue that goes like this. . . "this is not brain surgery" indicating it is not that severe or life threatening.  Or, in 5 or 10 Years, will this make any difference or I try to find the humor in the situation.  That helps more than anything.  Whatever method works for you, use it.  Getting stressed is not good for you or your clients.

June 27, 2008 11:47 AM
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Rainer
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Kerry Friestad

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