10 Tips Every Mineral Owner Should Know
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Garrett Phelan
CEO of US Mineral Exchange with over 27 years of experience in the oil and gas industry. For nearly two decades, he has helped individuals, families, trusts, and non-profits navigate the complexities of mineral and royalty rights to achieve the highest sale prices.
Widely recognized as an industry expert, with an unwavering commitment to a client-first philosophy and extensive industry knowledge, he has been featured in Hart Energy, Yahoo Finance, and the Permian Basin Petroleum Association magazine.
10 Tips Every Mineral Owner Should Know
1
Work With a Mineral Rights Broker
This tip ranks first for a reason. Selling mineral rights on your own (FSBO) often leads to missed opportunities. Without professional help, you won’t reach enough qualified buyers. Offers will vary widely, and you risk accepting less than market value. A mineral rights broker creates a competitive bidding environment—your best chance to sell for top dollar. Plus, they help protect you from unethical buyers looking to take advantage of uninformed sellers.
2
Know the True Market Value
Many mineral owners overestimate future value and underestimate today’s market conditions. Market value reflects what a buyer will pay now and it is critical to find buyers who also consider what could happen years down the road. The only way to find fair market value is to list your property and let real buyers compete.
3
Don’t Rush Into an Offer
Quickly accepting the first offer is one of the most common mistakes. An unsolicited offer in the mail might seem appealing, but odds are it’s far below market value. Take time to get multiple bids through a competitive process. That’s how you get the best deal.
4
Understand Mineral Buyers
Mineral buyers do not have your best interest in mind. While many are fair and honest, so many more are not. They know mineral owners often lack experience and knowledge and will exploit that. Having someone on your side who knows the industry and what is happening with your specific interest protects you from bad deals.
5
Watch Out for Flippers
Many “buyers” are actually flippers. These individuals pose as buyers, get you under contract, then resell your deal to another buyer at a profit. For example, they might contract you at $2,000/acre, then flip the contract for $3,000/acre—pocketing a 50% margin. What if it was actually worth $4,000 per acre as in the example below?
It’s nearly impossible to identify a flipper on your own. That’s another reason to work with a trusted broker who knows the difference.
6
Choose the Right Broker
Not all brokers are created equal. Here’s what to avoid when picking a mineral rights broker:
- No public listings or market data
- No helpful educational content on their website
- Generalists who also handle land, coal, wind, and solar
- Claims of providing accurate appraisals (this isn’t possible)
- Lack of experience or short time in business (check their public review history!)
US Mineral Exchange focuses exclusively on mineral and royalty rights, with a transparent process and a proven track record.
7
Decide If You Should Sell
Before you list, ask yourself if selling is the right move. Two common reasons to sell are:
- Lack of Control: You can’t force operators to drill. One shallow well could tie up your property for years with little income.
- Tax Benefits: Royalty income is taxed as ordinary income. Selling, however, may qualify for capital gains treatment, especially with a stepped-up basis.
Selling could give you more control over your financial future and reduce your tax burden.
8
Avoid Common Mistakes
Selling mineral rights can be complicated. Many owners fall into avoidable traps. At US Mineral Exchange, we guide you through every step to help you avoid these costly errors and secure maximum value.
9
Gather Proper Documentation
If you want to sell mineral rights for maximum value documentation is key. You need to be able to show proof of ownership. Having royalty check detail, a lease agreement, an order for payment, any recent division orders, or other documentation is extremely important. To get the best price, you must provide documentation. Buyers need proof of ownership and income history. Be ready to share:
- Last 3 months of royalty check detail
- Lease agreement and order for payment
- Recent division orders
- Any written offers
Visit our required documents to list page for more information.
10
Follow a Secure Closing Process
At US Mineral Exchange, our closing process is designed to protect sellers. Unlike direct buyers who often ask for the deed before payment, we ensure your ownership and payment are handled securely through escrow.
Final Thoughts
These 10 tips every mineral owner should know are designed to protect your financial interests. At US Mineral Exchange, we help mineral owners sell for maximum value with confidence and transparency.
Contact US Mineral Exchange:
We’re here to help. Our team speaks with mineral owners daily and would be happy to assist you. Fill out the form below and we’ll respond quickly.
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Free Consultation
Free Consultation
Common Questions
The more information you can provide about your property the better! We can give you a better idea about the value of selling mineral rights if you provide more information. The most important thing we need is for you to answer the questions and provide your state and county.
If you have the required documents to list, providing those is extremely helpful!
Absolutely not! When you inquire at US Mineral Exchange we will not be putting any pressure on you to sell. We will help answer any questions you have whether you are interested in selling or not.
At US Mineral Exchange, we take privacy very seriously. We will NEVER sell your information or use it without your consent. When you send us documentation or tell us about your property, that information does not go outside our company without your consent. Even when you list a property for sale on our website, we strictly control who has access to the information about your listing so that only legitimate buyers will be able to see property details.
Many mineral owners make the mistake of getting an offer and quickly selling. They then accept an offer far below market value because they felt pressure to sell. There is nearly always a better price available.
Imagine you were selling a home. Would you get the best price from a random person who walks up and makes you an offer? No way! Now imagine you list the home on the MLS where thousands of potential buyers know your house is for sale. The key to getting the best price is competition. Our guide to selling mineral rights explains everything.
The reason that so many mineral owners decide to sell mineral rights at US Mineral Exchange is access to our large network of mineral rights buyers. Our goal is to help you get top dollar for selling mineral rights by getting your property in front of a huge audience of buyers. This allows buyers to compete against one another which ensures you get fair market value for selling mineral rights.
There are absolutely no cost to list your property. When you locate a buyer by listing your property with us, we are paid a commission directly by the buyers closing agent. This means you never have any out of pocket expenses ever. We only get paid if we can get you a better price than the current offer you have in hand.
FREE GUIDE
Download our free mineral rights guide now! Learn more about your mineral rights.