The number one mistake mineral owners make when selling mineral rights in Texas is not using a mineral rights broker. Without an experienced broker who knows the industry, you simply can’t reach enough buyers to get a fair price.
Selling mineral rights on your own without the assistance of a broker makes it nearly impossible to reach enough buyers to get a fair market value for your rights. Why? There is no competition. You’re allowing 2 or 3 mineral buyers to compete for you minerals when there are thousands of mineral buyers.
Finding an offer to sell mineral rights is easy. Finding the absolute highest possible price from a reputable mineral buyer is the hard part.
A lot of mineral buyers in Texas have made a fortune reaching out directly with offers. Most mineral owners will talk to 2 or 3 mineral buyers. They negotiate the best price they can, and then sell. These mineral owners don’t realize that they could have walked away with substantially more had they simply gotten competitive bids.
Let’s say you received an initial offer for $1,200,000 and were able to negotiate it up to $1,300,000, and had other offers for $1,000,000 or less. It may seem like you got a good deal, but it is important to remember that competition from other buyers could have increased the value even higher.
What many mineral owners don’t realize is that competition could have increased the value even higher. If you found an offer for $1,300,000 on your own with a just a handful of buyers, imagine what the price would be if thousands of mineral buyers had an opportunity to bid?
It is extremely common for mineral owners to come to us with an offer they have already negotiated higher. We’ll then hit the market and typically see a 10% to 30% price improvement over their existing offer. If you get a 20% price improvement on a $1,300,000 offer, you just made an extra $260,000!
Competition is crucial when selling mineral rights in Texas. You absolutely must get competitive bids or you are nearly always selling below market value.