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Client Reviews

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.

Shelby, TX

Rated 5 out of 5
August 1, 2022

By listing our mineral interests with Texas Royalty Brokers, my husband and I received an offer more than 50% higher than the best offer we received in the mail. And, the expert guidance we received from Eric Winegar through the entire process was just as important.

Eric established value, listed the property, discussed options, vetted and coordinated paperwork, always provided thoughtful and knowledgeable guidance, clearly answered our many questions, and looked after our interests, keeping us informed every step along the way. We are so glad that we listed our property with Texas Royalty Brokers.

Linda, N.

La Salle, TX

Rated 5 out of 5
June 24, 2022

Our family was on the fence about selling mineral rights until we got a really high offer in the mail. We reached out to see if the offer was a fair one. Within just minutes the company responded and walked us through the value of the mineral rights. We decided to list the mineral rights to see if there was a better offer. Sure enough, we got a bid that was even higher. I can’t thank Eric and the team at Texas Royalty enough for helping our family with the sale of these mineral rights. We are truly thankful.

Amy R.

Harrison, TX

Rated 5 out of 5
June 18, 2022

We got an offer from [redacted] in the mail. I knew this offer was a low ball offer, but we hadn’t really thought about selling until the offer came in. My wife and I didn’t want to be greedy, but we also wanted to sell for the best price we could find. I reached out to a few other buyers and then decided to list this at Texas Royalty Brokers. It was the best decision we could have made. We ended up walking away with substantially more money.

Arnold P.W.

Ward, TX

Rated 5 out of 5
May 6, 2022

The price I received after listing at Texas Royalty Brokers was shocking. I had multiple offers to sell, but I was not sure who to trust. I decided to list and let them walk me through the process. Our family was less concerned about the price and more concerned about not being taken advantage of. We ended up selling for over $600,000 more than the offers we were receiving. On top of that, they walk us through the sales process making sure we understood everything each step of the way. These guys are the real deal and our family is very grateful we found this company.

Sam L.

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Mineral Owner Mistakes

There are a number of common mineral owner mistakes.  When selling mineral rights, you want to avoid making these mistakes that will cost you thousands of dollars.

If you are thinking about selling mineral rights, below is a list of common mineral owner mistakes to avoid.

7 Common Mineral Owner Mistakes

Here are the most common mistakes mineral owners make when selling mineral rights in Texas:

1. High Pressure Offers: If a mineral buyer is putting pressure on you to sell, this is a huge red flag.  Why would a mineral buyer put pressure on you to sell?  Simple.  They are offering you a below market price and they want you to decide quickly.  They know that by putting pressure on you to sell they will convince some people to take the offer and get a much better deal.

2. Fake Deadlines: Related to high pressure offers, putting fake deadlines on offers is extraordinarily common in this industry.  Nearly every mineral buyer does this to some extent.  Mineral buyers will make you an offer, and then claim that the offer expires in 48 hours or within 7 days, etc..  Do not fall for this.  Mineral buyers do this to create a sense of urgency.  They want you to sell quickly before you get any competitive bids.

3. FSBO:  By the far, the number one mistake you can make when selling mineral rights is doing it yourself.  When you sell mineral rights on your own, you are going to waste a lot of time and lose thousands of dollars.  We are biased.  We are mineral brokers so naturally we believe that using a broker makes sense.  However, consider these examples:

Family Sales: It is extremely common for families who all have an identical interest to sell around the same time.  Frequently, a few family members will get an offer in the mail and then accept the best offer they can find after some negotiation.  Another person in that same family will then reach out to us and have us list their mineral rights.  We nearly always help that mineral owner get 10% to 50% higher prices than their family got.  The rest of the family is then extremely mad after they realize they got taken advantage of selling on their own.

PSA Terms:  Are you intimately familiar with the terms in a purchase and sale agreement?   If not, mineral buyers will take advantage of you.  One of the most common examples is intentionally using an incorrect royalty rate.  A mineral buyer can give you a contract for $10,000 acre assuming a 25% lease.  Let’s assume your actual lease rate is 12.5%.    At closing, their $10,000/acre offer is going to be $5,000/acre.  The mineral buyer knew you were leased at 12.5% but they write in 25% to make their offer appear to be twice as large.  This is just one example out of the many ways mineral buyers take advantage of you.

Flippers:  It’s not uncommon for a mineral owner to get a free consultation with our company.  That mineral owner ultimately decides not to list.  They sell on their own.  A couple months later, a mineral buyer will approach us and list the mineral rights from exactly the same person that didn’t want to list.   After the mineral buyer worked directly with you, they get a cheap price and then turn around and list with us to get a much higher price.

4. Lawyers:  We still don’t understand why, but selling mineral rights through a lawyer still occurs today.  A lawyer does not know how to market mineral rights and as such will not get you the best price.  A lawyer should be used to review contracts, not market things for sale.  You are better off selling mineral rights on your own than using a lawyer.

Bonus:  Be cautious picking a lawyer to review the PSA when you sell mineral rights.  Most lawyers are good at understanding generic contract language.  They are not necessarily well versed in mineral rights sales. They may not understand the difference between an offer with a 25% lease assumption and a 12.5% lease.  If you need a good Texas Oil and Gas Attorney, we can refer you to one.

5. Mineral Rights Value:  When selling mineral rights, figuring out the value of mineral rights is complicated.  There is no way to know the value until you get competitive bids in an open mineral rights marketplace.  Here are some common mistakes that mineral owners make when it comes to value:

Things that DO NOT determine the value of your mineral rights:

Comparables:  What someone else sold mineral rights for does not tell you anything about what your mineral rights are worth. There are no ‘comps’ in mineral rights.  Even if a family member sold an identical interest, unless they sold within the last 30 days and got competitive bids through a broker, it means nothing about the current value of your mineral rights.

I need $X:  A lot of mineral owners will say they need $300,000 to buy a house so they want $300,000 for their mineral rights.  Your mineral rights are worth what a buyer is willing to pay.  Your mineral rights are NOT worth what you need to get to make a purchase.

Making up a value:  Many mineral owners will also make up a completely arbitrary number.  This number may come from what they read online, what they just “feel” it’s worth, etc..

Taxes change value:  You may get an offer for $500,000 and then say you need more to cover the mineral rights taxes.  That is not how it works.  You are paid what the mineral rights are worth.  Your personal tax situation doesn’t change the value of the mineral rights.

Retirement Value:  After speaking with a financial advisor, some mineral owners will say they need the mineral rights to be worth $X so they can retire.  Your mineral rights are worth what the market is willing to pay, not what you need to retire.

Things that DO determine mineral rights value:

Competitive bids:  The only way to determine mineral rights value is to get competitive bids through a reputable broker.  When you get competitive bids an in open market environment, you will determine the absolute best market price available.

6. Mineral Rights Brokers:  It’s important to use a mineral rights broker to ensure the best price.  However, not all mineral rights brokers are created equal.  It’s important to pick the rights mineral rights broker in Texas.

7. Understanding Taxes:  It’s important to understand the tax implications of selling mineral rights before you sell mineral rights. A lot of mineral owners accept an offer and don’t realize what will happen on their taxes.  You may owe nothing when selling mineral rights, or you may owe capital gains taxes.  You should understand how much money you will owe so that you can set that money aside after the sale.

Questions about selling mineral rights?

If you are thinking about selling mineral rights, we can help.

Fill out the free consultation form below.  Our team will quickly be in touch to help answer your questions!

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