Record Breaking State Oil & Mineral Lease Auction
A potentially huge unconventional natural gas reserve has been discovered in Northern Michigan. This new natural gas play has been dubbed the "Collingwood Utica" shale play, named after Collingwood Shale, which is present in Northern Michigan at varying depths, along with Utica Shale, which is also present at shallower depths.
Prompting incredible speculation in local gas, oil and mineral rights leases are reports of a successful natural gas test well in Missaukee County owned by Petoskey Exploration, LLC, a subsidiary of Canadian based natural gas producer Encana Corporation. Oil, gas and mineral leases on land owned by the state of Michigan were auctioned off for a record $176 million in early May of 2010. The average lease price of $1507/acre was exponentially higher than the $26/acre average lease price in previous auctions.
Oil and Gas Leasing Frenzy
The huge potential of the Collingwood Utica shale play has sparked a modern day gold rush. Landmen employed by the gas companies are rushing to lease oil and mineral rights from private landowners, many of whom have received multiple offers. In addition, opportunistic middlemen are attempting to obtain oil and gas leases from property owners who may be unaware of the recent jump in prices, and turn around and sell them to the gas companies for a huge profit.
Northern Michigan property owners need to understand that the negotiation of an oil and gas lease involves complex legal issues relating to the rights, privileges and obligations of the parties throughout exploration and production. It is essential that landowners arm themselves with as much information as possible to ensure that the terms of their oil and gas lease are favorable. To protect their future interests in their land, landowners who are considering entering into an oil and gas lease should seek the professional assistance of an experienced Northern Michigan oil and gas law attorney to guide them through the process and ensure that their legal rights are protected.
Buyer's Broker of Northern Michigan, LLC is very pleased to announce the addition of new interactive mapping capabilities when searching the Northern Michigan MLS for homes. You can now perform a map search of Petoskey, Michigan homes for sale, or show the location of homes or other properties meeting your desired search parameters on a map. A number of clients ask for a mapable search feature on my MLS search page, and am happy to provide it for you. Enjoy!
Back a few years ago, a couple of foreclosure notices posted at the Emmet County Courthouse was the norm. Nowadays, they might need to put another anchor in the wall so the bulletin board doesn't come crashing down (or perhaps consider purchasing a bigger bulletin board).
What does this mean for you if you are considering the purchase of a home in Emmet or Charlevoix Counties?
The number of Northern Michigan properties in foreclosure and bank owned properties on the market can potentially be considered good news for buyers. High foreclosure rates can result not only in good buys on bank owned properties, but possible short sale opportunities for homes still in foreclosure.
However, foreclosure sales can be fraught with pitfalls. Under Michigan law, bank owned properties are generally not subject to the Michigan Seller Disclosure Act. Almost all sales are on an "as-is" basis, with no disclosures of any type. In addition, most banks require that you use their form purchase agreements and addendums, which contain just about every type of waiver and release you could ever imagine. Many banks (especially the larger out of state lenders) are difficult, if not impossible, to communicate with.
As someone who is contemplating the purchase of a Northern Michigan foreclosure property, it is imperative that you have representation from both a licensed real estate professional and a licensed real estate attorney to minimize the risks associated with any such purchase. People willing to accept a certain degree of risk can be richly rewarded when purchasing a foreclosure property. However, it is only prudent to minimize that risk wherever and whenever possible.
At Buyer's Broker of Northern Michigan, LLC, we guarantee that we will always represent your interests. Broker/Owner Stefan J. Scholl is also a licensed Northern Michigan real estate attorney. Our buyer clients receive legal representation in connection with their purchase at no additional charge.
If you are considering the purchase of a foreclosure property in Northern Michigan, don't take on any unnecessary risk. Give us a call today.
Buyer's Broker of Northern Michigan, LLC
Toll Free: (877) 2 BUY NMI or (877) 228-9664
Northern Michigan Property Search
In Charlevoix County, 353 residential sales were reported in 2007, down from 390 sales in 2006, a decline of nearly 10%. The average sales price actually increased, from $256,501 in 2006 to $261,326 in 2007. The median sales price declined approximately 6%, from $155,000 in 2006 to $145,000 in 2007.
Note: Market information courtesy of Emmet Ass'n of Realtors. Charlevoix County real estate sales include single family homes, farms and condominiums.
In Emmet County, 436 residential sales were reported in 2007, down from 496 sales in 2006, a decline of more than 12%. The average sales price declined from $344,021 in 2006 to $320,377 in 2007. The median sales price actually increased, however, from $189,079 in 2006 to $190,000 in 2007.
Note: Market information courtesy of Emmet Ass'n of Realtors. Emmet County real estate sales include single family homes, farms and condominiums.
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Buyer's Broker of Northern Michigan is an exclusive buyer agency specializing in buyer representation and relocation. Serving Petoskey, Harbor Springs, Charlevoix, Boyne City and all of Northern MI.
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