10 Tips Every Mineral Owner Should Know

1

FSBO vs Mineral Rights Broker:   We put this tip at #1 for a reason.  The #1 tip for mineral owners is to work with a qualified mineral rights broker when selling mineral rights.  The primary reason is that when you sell mineral rights on your own you won’t reach enough buyers.   Each buyer evaluates your mineral rights differently.  The offers will be all over the board.  To get maximum value when selling mineral rights you need a competitive bidding environment.  This is the only way to sell for the highest price.  In addition, there are a lot of ways to get taken advantage of.  Mineral buyers know that mineral owners do not know what they are doing.  A qualified mineral rights broker will help guide you through the process.  Do not sell mineral rights on your own.  You’ll sell below market value and you run an extremely high risk of being taken advantage of.

2

Understand Market Value:   A lot of mineral owners sell mineral rights without understanding market value.  When you sell mineral rights, your mineral rights are worth what a mineral buyer will pay today for your mineral rights.   A lot of mineral owners talk about what will happen in the future.  What matters is what your mineral rights are worth today.  A mineral buyer does not pay based upon wells that could be drilled in the future.   The market value of mineral rights is determined by putting your mineral rights in a competitive bidding situation and then accepting the highest market value available.

3

Rushing to Accept an Offer:  This is another way that mineral owners lose out on a huge amount of money.   When you get an unsolicited offer to sell mineral rights, and then quickly accept that offer, you sold below market value 99% of the time.  Why?  Imagine putting you have no intention of selling your home.  A stranger walks up to your home and makes you an offer.  What are the odds that offer is the best price available?  Virtually zero.  Yet mineral owners fall into this trap all the time.  They get an offer or two in the mail, then quickly accept a below market offer because they rushed into it.  Buyers will put pressure on you to sell quickly.  Don’t fall into this trap.  Getting competitive bids is extremely important if you want a good price.

4

Mineral Buyers:  A lot of mineral owners do not understand mineral rights buyers.  They feel that mineral buyers will treat them fairly and honestly.  While there are a lot of fair and honest mineral buyers, there are 10x more mineral buyers who will screw you over every chance they can get.  This industry is dirty.  Mineral buyers understand that mineral owners have no idea what they are doing.  They will take advantage of you and make a huge amount of money in the process while they smile and assure you they are giving you a great deal.  You need an advocate on your side who is looking out for your best interests.

5

Flippers:  Did you know that most “mineral buyers” are actually just flippers?  What is a mineral rights flipper?  A mineral rights flipper is someone who pretends to be a buyer.  They make you an offer to sell, get you to sign a contract, and then turn around and sell the contract you signed at a higher price.  For example, you may agree to sell for $2,000/acre.  They may turn around and sell that contract to someone else for $3,000/acre.  That means they just made a 50% commission for flipping your mineral rights.   It’s virtually impossible to determine if you are working with a legitimate end buyer or a mineral rights flipper.    The example below illustrates how mineral rights are commonly sold.

Mineral Rights Flipper

6

Brokers:   Our #1 tip was to use a mineral rights broker when selling mineral rights.  How do you know which mineral rights broker to pick?  Obviously we are biased, but you should sell mineral rights at US Mineral Exchange.   Don’t just take our word for it.  Look around and check out your other options.  While you are evaluating your options, looking for these common red flags:

  • The broker has no publicly available listings
  • The broker provides no information to help you understand the process, the industry, etc.
  • The broker provides services for multiple industries (coal, wind, solar, land, etc etc) and doesn’t focus exclusively on mineral rights
  • The broker claims they can give you an accurate appraisal value of mineral rights (they can’t)
  • The broker has only been in business for a short period of time

7

Determine whether you should sell: This seems obvious, but before you start the process of selling mineral rights you should consider whether you really want to sell.   There are a lot of reasons to sell mineral rights.   There are two big reasons to sell mineral rights.  The first is that you have no control over the asset.   When you own mineral rights you don’t get to decide when they drill.  All your eggs are in one basket.  If the operator drills one shallow well and leaves it held by production for a decade, you can’t force them to drill more and collect more royalty income.  The second reason to sell is due to taxes.  Collecting royalty income you are taxed at ordinary income tax rates.  When you sell, you pay capital gains tax rates based on your stepped up basis.  You might make more money by selling rather than collecting royalty income and paying more in taxes.

8

Avoid Common Mistakes:  Many mineral owners fall into the same traps.  We can help you avoid these common mineral owner mistakes when you sell mineral rights at US Mineral Exchange.  Our expert team will be with you each step of the way to help you avoid making the wrong decision.    We want to see mineral owners sell for the highest valuable possible.   A lot of mineral owners fall into common traps that can be avoided.

9

Documentation: If you want to sell mineral rights for maximum value documentation is key.  You need to be able to show mineral rights buyers proof of ownership.   Having your last 3 months of royalty check detail, lease agreement, order for payment, any recent division orders (last 3 months), and other documentation you have proving your ownership is extremely important.   Providing this information up front is what allows US Mineral Exchange to get you the highest value for your property.

Please see our required documents to list page for more information.

10

Closing Process:  At US Mineral Exchange we have a clearly defined process for selling mineral rights.  When you sell mineral rights on your own, the mineral buyer will have you send the mineral deed giving them ownership before you get the money.  This is obviously not a good situation for you.  At US Mineral Exchange, our process helps ensure you get paid at closing.

We provide these 10 tips every mineral owner should know to help you better understand your mineral rights.   At US Mineral Exchange we are solely focused on helping mineral owners get the maximum value for their property.  Learn more about US Mineral Exchange and see why we’re the #1 trusted company to sell mineral rights.

Contact US Mineral Exchange:

If you have questions about your mineral rights, we’re here to help!  We speak with mineral owners every day and we look forward to hearing from you.  Please don’t hesitate to fill out the form below with any questions and our friendly team will respond quickly.

Free Consultation

Free Consultation

Your Name

Your Email

Phone

Average amount you receive each month:

Is the property leased?:

Do you have any offers?:

How did you hear about us?:

If you have check stubs, lease agreements, or offers, please upload those documents here(max 20 Mb):

Tell us a little about your property and what you hope to accomplish? Please include state and county of property.

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.

We typically respond to inquiries in less than 12 hours and usually within hours of submitting the contact form. At US Mineral Exchange our goal is to be available to mineral owners as a resource so we pride ourselves on quickly replying and communicating with mineral owners.

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.

We have two types of listings available to help you sell mineral rights for the best price:

Auction Listing – Our auction listings are for just 7 to 14 days.  If you have an offer in hand you are seriously considering, an auction listing is a quick way to get a better offer and ensure a smooth closing process.  Learn more about our auction listings.

Standard Listing – Our standard listings run for 30 days.  These listings are ideal if you don’t have an offer in hand or you are not in a rush to sell.  Learn more about our standard listings.

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.

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Client Reviews

Linda Baldwin
15:04 17 Jul 20
Selling oil and mineral rights is not a common practice, or at least not for us. We went from "how on earth will we do this and do it right" to a very successful sale in record time. I am so happy that we found US Mineral Exchange. From the first phone call they were professional, answered all of my questions, and walked me through every step of the process with calm professionalism, and brought a price exceeding our expectations. From a seller's perspective, it could not have gone better! I wholeheartedly recommend US Mineral Exchange and gladly serve as a reference.read more
Beau Bostick
19:07 15 Jul 20
Great company just be careful who you sell to Iron Horse royalty out of Austin Texas and Garrett Merket very dishonest company. But after learning he was connected with a politician . I am not surprised
Bryan Austin
18:13 13 Jul 20
Terra was amazing in assisting me in selling my late fathers royalties. She answered all of my questions and made the process smooth as butter! Thank you!
Nicole Garcia
20:48 12 Jun 20
I contacted US Mineral Exchange in hopes to sell my families old mineral rights. Though the claims were too small for their business to sell they had great information for me and my situation. Highly recommend this company!
David Johnsen
18:06 08 May 20
US Mineral has been very helpful, leading us through all the steps in selling two different royalties. We gave them plenty of problems to work us through and they were always more than helpful and kind.
Donna Ware
18:02 23 Apr 20
My husband William Ware acquired Mineral Rights through his late Grandmother. We worked with Terra at US Mineral Exchange to begin the decisions to sell our rights. She responded to every question, even ones that to her were probably silly, she did it professionally and with kindness. When it came time to decide if we wanted to take the offer we received from a buyer, she didn't pressure us but gave us educated advise. I can't recommend this company enough!read more
Charles Clark
17:49 18 Mar 20
To Tara Castagna: Thank you very much for helping me thru the selling process of my mineral rights. Your excellent customer service and attention to detail made the process very easy. Your research of the history and records of my rights was extremely helpful in completing this project. Again, thank you for the very professional service. Conley Lawread more
John Parkhurst
20:01 16 Mar 20
I used US Mineral Exchange to sell my mineral rights in Colorado. I dealt with Terra and she was a real champ at follow-up and advise. She was extremely friendly and responsive to any questions I had. I highly recommend any individual that is considering selling their rights would be well satisfied for their customer service, experience, and guidance. My experience was totally hassle free. I highly recommend their service!read more
John Parkhurst
20:01 16 Mar 20
I used US Mineral Exchange to sell my mineral rights in Colorado. I dealt with Terra and she was a real champ at follow-up and advise. She was extremely friendly and respon