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Client Reviews

Howard, TX

Rated 5 out of 5
January 3, 2023

The team at Texas Royalty Brokers were so easy to work with. They made what sounds like a very confusing process, clear and straightforward. They were incredibly responsive and kind people to work with. I definitely recommend their services!

Bridget Z.

Tarrant, TX

Rated 5 out of 5
December 15, 2022

A great and straightforward experience. They answered all questions and made the process quick and easy. I highly recommend their services.

Robert S.

Howard, TX

Rated 5 out of 5
December 2, 2022

I engaged Texas Royalty Brokers to market my mineral interest after I received an unsolicited offer. They got me almost 2x the original offer, and they were professional and transparent through the entire process. Definitely plan to use them again.

Christopher W.

Karnes, TX

Rated 5 out of 5
November 1, 2022

After several months of researching the process of selling mineral rights, as well as researching several land/mineral brokers, I filled out the contact form for Texas Royalty Brokers. I received a reply from Eric Winegar almost immediately. From the start, Eric was easy to work with and I always felt that he was truly working with my best in mind. Throughout our numerous emails and phone calls, he was always courteous and professional and answered every question I asked. Some more than once! I was provided with all the drilling maps and financial information he used to determine the listing price and future drilling potential.

Once I accepted an offer, he handled all of the paperwork and walked me through every part of the process. And, when we ran into a snag (which he had prepared me to expect) and I started to question my decision to sell, he was so respectful of my indecision and provided me with all the information I needed to reassure myself that I was making the right decision. I can’t thank him enough. I wouldn’t hesitate to recommend Texas Royalty Brokers to anyone interested in selling their mineral interests.

Jann R.

Howard, TX

Rated 5 out of 5
September 19, 2022

16 years after inheriting Howard County mineral rights, and recently receiving increasing unsolicited purchase offers, we made the decision to sell. After thoroughly researching brokerage firms we decided to contact Texas Royalty Brokers which was a highly beneficial move. Eric could not have been easier to work with and we felt a strong fiduciary relationship throughout the entire process. Numerous phone calls and discussions were handled in a prompt, professional manner with precise explanations and valuable information offered, all delivered in a stress free environment. We feel that Eric went above and beyond our expectations and was a significant factor in our successful sell. We highly recommend Texas Royalty Brokers and Eric Winegar and would not hesitate to work with them in any future endeavors.

Traci D.

Blog Categories

Mineral Buyers

Are you looking for mineral buyers?  We’ll show you how to find mineral buyers and how to avoid shady mineral buyers.

There are literally thousands of mineral rights buyers in the United States.  If you’re thinking about selling mineral rights, don’t sell until you consider who the mineral buyer is.

A lot of mineral owners sell below market value because the mineral buyer takes advantage of them.  We’re going to show you how to find high quality mineral rights buyers who pay the best prices.

Mineral Rights Buyers

Most mineral owners who are searching for mineral rights buyers are trying to get offers for their minerals.

Before you waste a lot of time searching for buyers, it helps to understand the different types of oil and gas mineral buyers.

Here the different types of buyers you will encounter:

Individual Buyers:  Some mineral rights buyers are high net worth individuals.  These mineral buyers are interested in purchasing mineral rights to diversify their investments.  Most individual mineral buyers in are purchasing deals below $100,000.

Flippers:  One huge problem in the mineral rights space is mineral rights flippers.  Mineral rights flippers are not buyers and do not have any cash.  A mineral flipper will attempt to put you under contract at basically any price.  Once they put you under contract, they mark up the price by 25% to 100% and attempt to sell your mineral rights to a real buyer.   If they are successful, the flipper just took cash that should have been paid to you.  The tricky part with mineral flippers is that they will not tell you they are flipping. They will pretend to be a legitimate buyer.

Low Ballers:  While technically a legitimate mineral rights buyer, low ballers are extremely common.  These buyers will send you offers in the mail that are far below market value.  These types of buyers will typically apply a lot of pressure to accept an offer and they will also try and make it easy to sell by sending you the deed up front.  If you are getting a lot of pressure to accept the offer, it’s probably a low baller.

True End Buyers:  A true end buyer will be a private company specializing in mineral rights acquisitions or a private equity backed company specializing in mineral rights acquisitions.  These mineral rights buyers are purchasing to hold long term.

How do you know which type of mineral buyer you are talking to?  Figuring that out is difficult to impossible if you are not extremely familiar with mineral rights transactions.

Why are there so many shady mineral rights buyers?

When selling mineral rights you need to be extremely cautious.  In our estimation, about 90% of “mineral buyers” are flippers and low ballers. Just 10% of the market are actually legitimate buyers.

There are two primary reasons:

1. Lack of Price Transparency:  One of the biggest problems when trying to figure out mineral rights value is the fact that sales data is not public information.   The mineral rights market is unique.  There is no public sales data available to tell you what other mineral rights are selling for.  In addition, each property is unique so there is no reliable way to know the value of mineral rights.  What this means is that flippers and low ballers know mineral owners don’t know the value of what they are selling.

2. Lack of Competition:  Most mineral buyers do not actually have to compete.  Mineral owners assume they can find a fair price on their own.  They receive a few offers in the mail, reach out to a few mineral buyers online, then take the highest offer they found.   These mineral owners don’t realize that talking to a handful of mineral rights buyers is not going to yield the best price.  You want thousands of mineral buyers competing to pay you the best price.

When oil and gas royalty buyers know that the value is unclear and they don’t have any competition, this creates the perfect situation to take advantage of mineral owners.

Mineral buyers prey on mineral owners who can “do it themselves” and don’t think they need help selling mineral rights.   These mineral owners sell far below market value and allow these shady mineral buyers to make a fortune.

Get maximum value when
selling mineral rights in Texas!

Mineral Buyer Red Flags

We do not recommend selling mineral rights on your own.  You will end up spending tons of time trying to figure everything out while making less money.   If you’re set on selling mineral rights yourself, realize that you will be selling below market value.

When selling mineral rights on your own, here are some red flags you should look out for:

Pressure: A low baller or flipper will put a lot of pressure on you.  They will call or email constantly asking you to make a decision.

Short Deadline: Buyers will create an arbitrary deadline to accept their offer.  Typically, within just a few days to a week.  You have owned these mineral rights for years.  Do not make a rushed decision to sell on the basis of a made up deadline.  This is just a mineral buyer tactic to force you into a quick decision.

Easy Negotiation: Did you ask for a substantial amount more and the mineral rights buyer simply agreed?  This is actually a bad sign.  It means their initial offer was so low they can increase it dramatically and still be getting an excellent deal.  Flippers will accept any price you’re willing to take just to have a chance.  If you easily negotiated a higher price, you are not working with a legitimate end buyer.

Long Due Diligence: Does the buyer need more than 30 days to close? This is likely a flipper.  There should not be any reason to have due diligence longer than 30 days.

Mineral Deed: Does the oil and gas royalty buyer want you to sign a mineral deed before due diligence is complete and send it back with the PSA?  If you do this, they are now holding your mineral rights hostage because they have a valid deed in hand.

Escrow: Does the mineral rights buyer have an escrow process in place?  If not, you will be sending your mineral deed (which transfers the ownership) to the mineral buyer without getting paid.  This is a risky position to be in.

This is just a small sample of the red flags you should be looking for.  Mineral buyers are experts.  They know how to take advantage of mineral owners.

When selling mineral rights it is extremely important to have an advocate on your side.   A mineral rights broker who can weed out the shady buyers and get legitimate offers from true end buyers is going to help you sell for maximum value.

How to find Mineral Rights Buyers

Here are three ways find mineral rights buyers:

1. Offer Letters:  A lot of low ballers, flippers, and legitimate mineral buyers will send letters in the mail.  Most of these letters will come from low ballers and flippers.  These offers letters are good ball park idea of what your mineral rights might be worth.  However, there is nearly always a better price out there.  Remember, you don’t want accept an offer after talking to just a few buyers.   This is not how you get the best price.

2. Google:  After receiving a few offer letters in the mail, you may be tempted to search Google and find oil and gas royalty buyers.  There are literally thousands of them out there.  How do you know which buyers to reach out to?  How long is that going to take?  More importantly, a lot of the best mineral buyers do not have a website at all.  They rely on Texas Royalty Brokers to source high quality deals for them to purchase mineral rights.

3. Texas Royalty Brokers:  At Texas Royalty Brokers, we can help connect you to thousands of mineral buyers in Texas.  Our goal is to create competition for your mineral rights.  After listing your mineral rights with us, they will quickly be seen by thousands of legitimate end buyers on our website.  These buyers will compete to pay you the highest price.

We’ll help you avoid the shady buyers, help you through the contracts, and provide an escrow service to protect you.  The best part?  You can bring us any offer in writing and we’ll help you get a better price or we don’t get paid a dime.   Typically, we get mineral owners 10% to 30% higher offers.

Deciding how to sell mineral rights is an important decision.  Don’t leave it to chance.

For most mineral owners, this is a life changing decision.  Do you want to navigate the process blindly hoping you find a quality buyer at the best price?

At Texas Royalty Brokers our team will be there to guide you through each step.  We’ll ensure you get the best price and make the process simple.

Questions about Mineral Buyers in Texas

Do you have an offer to sell mineral rights?  Curious about how to find more mineral buyers to ensure you’re getting the best price?

Contact us.  Our team will quickly help answer your questions.

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