Listing Mineral Rights for Sale
When we list mineral rights for sale at Texas Royalty Brokers, we want to attract maximum attention from mineral buyers. The more attention your listing gets, the higher the bids will be.
Gathering the required documentation is the most important step to ensure you sell for the best price.
Imagine you were selling a home. If you were list your property on Zillow and include no photos and no square footage, would you expect to attract a lot of buyers? No way!
Imagine you were selling a car. If you listed your car on Autotrader but included no photos and no mileage, would you expect to attract buyers? No chance!
We see mineral owners make the same mistake over and over again. They want to sell mineral rights without providing any information about what they actually own. It’s not uncommon for a mineral owner to say “just look it up” when we request documentation. The documentation that we request is not public information.
Here is the documentation we require to list:
- Check Stubs: The bare minimum documentation that we require to list mineral rights is your last 3 months of check stub details. Each time you get paid royalty income a check stub is generated that shows details about the payment. These details include information like the wells, volume of oil and gas, your ownership interest, etc.. If you get direct deposit, there is a way to view these check stubs online. You may need to contact your operator (company who pays you) to ask for copies of your check stub details. Note: There is no substitute for check stubs. Your 1099, a summary from the operator, or other documents will not work.
- Offers: If you have an existing offer to sell mineral rights that is current (within the last 60 days) and in writing, please provide us with this offer. This offer will be confidential and never shared with mineral buyers. Providing us with your written offer does two things:
- 1. It allows us to set a more accurate starting bid price based on current market offers.
- 2. We do not get paid unless we help you secure a better price! By providing us with your written offer, you set the floor. We have to perform and provide you with a better offer.
Here is the documentation that helpful but is not required to list:
- Lease Agreement: The lease agreement is extremely helpful for mineral buyers. The lease agreement is typically 2 to 4 pages long and will specify the lease royalty rate. In Texas, this could be anything from 12.5% to 25%. The lease agreement will tell mineral buyers a lot of important information.
- Mineral Deed: If you have a mineral deed that shows how you acquired the ownership, this is helpful.
- 1099: If you have the previous years’ 1099 that shows your total royalty income from the previous year, please provide it.
- Title: If you have title work that shows how many acres you own, this is extremely helpful for mineral buyers.
Gathering documentation is a pain! We get it!
If you already have an offer in hand, it may be tempting to just take the offer to sell mineral rights in Texas. Don’t do it! You will be selling below market value.
By taking just a few minutes of your time to gather the required documents to list, you’ll end up making thousands of extra dollars. Often, hundreds of thousands of extra dollars.
Once you have gathered your check stub details, fill out the free consultation form. Include as much information as you can and upload documentation if possible. This will allow us to research your mineral rights before we discuss with you.
Note: It is not required to provide your check stubs / offers for a free consultation, but it is very helpful.
Once you fill out the free consultation form, one of our team members will quickly be in touch. During the call we’ll discuss a few items with you so that we can accurately market your mineral rights and ensure maximum value. Each call depends on the client and their mineral rights, but in general we discuss the following topics with you:
- Market Update: We will go over where the market currently is. We’ll let you know what kind of demand we’re seeing from buyers and help you weigh whether now is a good or bad time to sell.
- Location Expectations: We’ll discuss the specific county where your mineral rights are located. If you have provided your check stubs up front, we’ll tell you what’s going on with your specific acreage and what’s going on in the immediately surrounding area.
- Offers: We’ll discuss any existing offers you have on the table. We’ll review these offers for you and point out any red flags or areas of concern.
- Pricing: Based on the area, your royalty income, and the potential upside, we’ll discuss pricing the mineral rights. Pricing will depend on many factors such as how quickly you need to sell, what offers you have on the table, etc.. Note that when we list mineral rights, the listing price is a starting bid. You do not agree to sell at this price and this is simply a starting point for negotiations!
- Exclusivity: We require exclusivity for all of our listings. Exclusivity is what allows us to maximize value for clients. Our mineral buyers know that they won’t see this deal anywhere else. By consistently listing high quality deals, it attracts the best buyers who pay the best prices.
Please keep in mind that each consultation is free and there is no obligation and no pressure to move forward. A consultation is simply a discussion about your mineral rights.
It’s important to explore your options when selling mineral rights and that is what this call is for. We’ll help you understand our company, our process, and our focus on helping you maximize value when selling mineral rights in Texas.
Once the consultation is complete, we’ll communicate the next steps if you want to move forward. We’ll provide you with a copy of our listing agreement, let you know what documentation we still need, and ensure that the starting bid price is confirmed.
Listing Setup and Activation
If you decide you want to move forward, our team will ensure we have everything we need. This includes:
- Signed Listing Agreement
- Starting Bid Price
Once we have these items, our team will prepare your listing for activation. This includes putting together maps of the acreage, cleaning and preparing your documentation, and setting up the listing in our system. Once the listing is setup, our team will activate it and immediately begin marketing your mineral rights for sale in Texas.
To learn more about what happens after your listing is activated, please check out the what to expect article.
Whether you want to get starting listing mineral rights at Texas Royalty Brokers or if you simply have questions, please fill out the free consultation form below. Our team will quickly be in touch to assist you.