Why Texas Royalty Brokers?
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Cost to list at Texas Royalty Brokers
At Texas Royalty Brokers, we have one goal. To help mineral owners in Texas sell for the highest possible price.
The most important decision you can make when selling mineral rights is picking the right mineral rights broker.
The right broker is going to guide you through the process. A great mineral rights broker will help you avoid the common mistakes that mineral owners make and help you sell for the highest possible price.
At Texas Royalty Brokers, we want to be 100% clear and transparent about exactly what it costs to use our service.
Cost to List
There is no cost to list your mineral rights at Texas Royalty Brokers. We do not charge any fees at all to list your mineral rights on our platform.
Performance Based Commission
Our company is paid a commission based on the total sales price. There are no upfront listing fees. The commission covers our standard marketing, buyer outreach, offer negotiation, and transaction coordination services.
Our commission starts at 6%, with a reduced effective commission rate on larger transactions.
The mineral buyer will pay our commission at closing based upon the following scale:
Example: If the sale price is $3,000,000, the commission would be: ($2,500,000 X 6% = $150,000) + ($500,000 x 5% = $25,000) = $175,000
Keep the following in mind:
- Compare offers based on your net proceeds after commission, as well as the terms of the sale
- The commission scale applies to the total sales price, with a $6,000 minimum subject to the terms below
- An existing offer may qualify for a commission exception under the conditions in our listing agreement
- You are never going to be forced to accept an offer when you list with our company
As with selling a home, it is important to understand the commission and the services it covers before choosing a broker.
Our sales process is built around competition and price discovery.
When you list mineral rights at Texas Royalty Brokers, we market your ownership to qualified buyers and manage competitive bidding. Different buyers may value the same property differently based on their acquisition strategy, existing ownership, and development outlook.
Our commission and the conditions under which it is owed are defined in our listing agreement. The existing-offer exception requires a written offer verified by us before listing, a sale to the specified company at the stated price, and compliance with the other conditions in the agreement. If the price increases, commission can apply to the total sale price, subject to the agreement’s protection for the original offer amount.
Additional consulting beyond our standard services is billed at $175 per hour as described in the agreement. We notify you before hourly charges begin.
Minimum Commission
Our company is focused on high value mineral rights sales. This means the vast majority of our listings are valued at $100,000 or greater, which is our usual focus.
The reason is that our team puts a substantial amount of time, resources, and marketing effort behind each and every listing. The higher value properties generate a commission rate that supports this level of investment in each listing.
For properties valued at lower than $100,000, we have implemented a minimum commission of $6,000. This gives mineral owners the ability to access our services even when the value falls below our minimum threshold to list.
If your mineral rights sell for less than $100,000, the $6,000 minimum means the effective commission rate will exceed 6%. The minimum does not apply when multiple parties sell identical ownership as a group and the combined sale exceeds $100,000, as described in the listing agreement.
Before listing, we can explain how the commission applies to your ownership and how it affects your net proceeds. Our team also coordinates the transaction documents and escrow process.
Is a Mineral Rights Broker worth it?
When deciding whether to sell mineral rights in Texas on your own or use a broker, consider both the commission and the services you receive.
A broker can save you time by organizing information, reaching qualified buyers, managing questions and bids, and coordinating the transaction through closing.
Competitive bidding helps you compare what buyers are willing to pay for your property. Evaluate the offers, their terms, and your expected net proceeds together when deciding whether to sell.
Listing does not guarantee a particular sale price or increase in proceeds. The value of the service comes from qualified buyer exposure, competitive bidding, and experienced guidance throughout the process.
You decide whether to accept an offer. Before committing, review the commission, any applicable fees, and the obligations in the listing agreement.
“Free” Mineral Brokers
It’s important to understand that any broker or individual who is helping you sell mineral rights is getting paid. No one does this for free.
If a mineral broker claims they are “free” this simply means they aren’t telling you their commission rate. This is bad.
When a broker says they are “Free” they will present offers to you net of their commission. The problem is that their commission could be anything.
Let’s say you have an offer for $4,000/acre, and they find a buyer who will pay $4,250/acre. Great, you’re making more money! The issue is that the mineral buyer is actually paying $4,750/acre. This means the broker just made a 10.5% commission.
This is extremely common in this industry.
Many brokers will claim to be free. All this allows them to do is hide their commission rate, and then make a much higher commission.
Exclusive Listings
At Texas Royalty Brokers, our goal is full transparency.
While not a “cost”, it’s important to understand that our company requires exclusivity to list. This means that our company has the exclusive right to market your property.
Why do we require exclusivity?
There are three important reasons:
1. Quality: When you list exclusively, it shows mineral buyers that you are serious about selling. A lot of brokers will list anything. These low quality listings almost never result in a sale. Mineral buyers quickly figure out they are wasting time and ignore those brokers. At Texas Royalty Brokers, we require exclusivity to ensure you’re serious about selling. In turn, this gives mineral buyers the confidence to invest time evaluating your ownership and putting together a strong offer.
2. Resources: Our company spends significant time and resources on each listing. Without exclusivity, we couldn’t commit those resources to your listing.
3. Pricing: With a focus on high quality listings that appeal to mineral buyers and actively marketing your mineral rights, our company creates a competitive process to help you evaluate market demand and compare offers.
Our listing agreement explains the exclusive term, renewal, cancellation, referral period, and existing-offer exception. Review these obligations before listing, and direct buyer inquiries to our team so we can manage the process on your behalf.
Questions or concerns?
If you have questions or concerns about the cost to list at Texas Royalty Brokers, please contact us.
Our goal is full transparency. If you’re concerned about any of the costs or obligations associated with listing, simply reach out and let us know. We’ll help clarify any questions you have.
Learn more about Texas Royalty Brokers, how to sell your oil and gas royalties, and how to pick a mineral rights broker.
