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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.
An important part of picking the right mineral rights broker is commission cost. While mineral buyers will pay the commission, it is ultimately still a cost in the transaction.
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 set up based on a performance based commission. What this means is that we don’t make a penny unless we help you get a higher price.
Nearly every mineral owner who lists with us has an offer in hand. We don’t get paid unless we can help you get a higher price.
At Texas Royalty Brokers, we offer the most competitive commission rate in the industry. Texas Royalty Brokers is paid a commission based on the total sales price. The mineral buyer will pay our commission at closing based upon the following scale:
First $2,500,000: 5%
$2,500,000 to $5,000,000: 4%
$5,000,000+: 3%
Example: If the sale price is $3,000,000, the commission would be: ($2,500,000 X 5% = $125,000) + ($500,0000 x 4% = $20,000) = $145,000
Keep the following in mind:
- We nearly always help mineral owners get 10% to 50% higher prices after our commission is taken into account
- We don’t get paid unless we help you get a higher price than your existing offer
- Our commission can’t cause you to get less than your existing offer
- You are never going to be forced to accept an offer when you list with our company
Imagine you were selling a home. Would a real estate agent allow you to find offers on your own, then agree to only get paid if they can find you a higher price? Not a chance!
The reason we are able to do this is simple. Competition.
When you list mineral rights at Texas Royalty Brokers we know that getting your mineral rights in front of thousands of buyers will lead to better prices. While we get a commission, you’re going to walk away with substantially more money after listing. Our commission rate is clearly defined in our listing agreement.
Is a Mineral Rights Broker worth it?
When deciding whether to sell mineral right in Texas on your own or use a broker, the cost to use a broker is often the deciding factor.
A lot of mineral owners fall into the same trap. They assume that they can easily find offers on their own and get the best price.
Finding offers on high quality properties is easy. Getting the best price is the hard part. There are so many mineral owners who sell below market value because they are convinced they can find a good deal.
Most mineral owners have an offer in hand. When mineral owners list at Texas Royalty Brokers, we typically help them get 10% to 50% higher offers after our commission is taken into account. Competition is key.
More importantly, at Texas Royalty Brokers we don’t get paid a commission unless we can help you find a higher price. If you have an offer in hand and we can’t find you a higher price, you owe us nothing. This makes listing at Texas Royalty Brokers a risk free way to ensure you have the best offer in hand.
“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. 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. We don’t just send out an email and hope for the best. We actively market your mineral rights. 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 will ensure you sell for the best price.
While we do require exclusivity to list, we only get paid if we find you a higher offer. You can always accept your original offer and owe us nothing even though we require exclusivity to list.
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.
