Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public

Latest News

Note about "Views" reported on this site

Feb 7, 2014

I just want readers, contributors and potential contributors to realize that the...

This Site is Monitored

Dec 28, 2013

Articles that are not deemed contributory are removed from this site promptly, so we would...

New Site Template

Nov 30, 2013

Please pardon our somewhat painful transition, we have been working with

Valuing Mining Property

by Guest on Feb 24, 2012 General Appraisal 1341 Views

One of the most difficult appraisal assignments to complete is valuing of a property that has valuable mineral rights.  Surface rights are usually the only valuable part of a property, but some properties have added value due to above ground amenities, like the value of their air rights, timber value or they have valuable subsurface rights like mineral rights.

Most appraisers are not experts in the valuation of mineral rights, so they work with a Professional Geologist.  It is important to note that you never accept owner opinions of the value of a property's mineral rights.  You also never accept at face value the studies and / or opinions of mineral value opined by third parties that you did not employ regardless of their qualifications.  If it is your responsibility to value a property, think about what you will say to a Judge if he asks you if you did everything possible to verify and confirm the information used.  Think "professional responsibility" and take the steps necessary to do the job right even if you have to employ or consult with other experts.

Whether the mineral value is in gravel or gold, it is important that the appraiser is working with a Geologist who he can trust to provide an unbiased value opinion.  Even though as a real property appraiser you may be supplying only an opinion of the surface value, you will be a co-signor of the report and you want some assurance that the value of the mineral rights has been honestly assessed.

Even though I lack the credentials of a Geologist, I stay involved by going with them on their inspection, and I provide assistance with the gathering of samples.  If you followed the testing you will be aware of its strengths an shortcomings.  

The value of the mineral rights do not add to market value on a dollar for dollar basis.  The cost of extraction, the time value of money (present value), transportation costs, the risk associated with testing being wrong and the changing price of the mineral all must be considered.  The fact that the site may need remediation also must be considered.

Since many properties with mineral rights have serious transportation and utility service issues, they are often not mined.  It is important to note however that many a court suit has been fought over mineral value issues, which is a principal reason why many appraisers avoid appraisal work that involves mineral rights.

For more appraisal information contact Glenn Rigdon, MA,MRICS, ASA a Las Vegas / Henderson Nevada appraiser via email or via his business website Horizon Village Appraisal (, or you can also click on “Contact Us” on the home page of this website.

Article source:

Most Recent Articles

Appraiser Location Analysis

May 10, 2019 670 Views

Pahrump, Zoning & Appraisals

Jan 15, 2019 866 Views

Are Your Improvements Contributory?

May 17, 2018 859 Views