If you’re looking for the best way to sell oil royalties, you’re in the right place. This free guide will tell you everything you need to know about selling oil royalties for the highest amount of money possible. Many mineral owners make the mistake of stumbling around to a few website and accepting an offer far below market value.
Estimate the Value of Oil Royalties
Before we discuss the best way to sell oil royalties, we have to discuss how to value oil royalties. Our in depth article about the value of royalties will explain the specifics, but you can generally assume your royalties are worth between 4 to 6 years of monthly production. What this means is that you can take the amount you received over the last 6 months and come up with an average monthly amount. You can then plug in that average monthly amount in the calculator below and it will provide you with a range of value you could expect to get for selling oil royalties.
The value when you sell oil royalties can be higher or lower than this range based on a number of factors. These factors include the following:
- Oil and Gas Prices
- Surrounding Production
- Royalty Percentage
- Age of the Well
- Operator
- Future Drilling Possibilities
How Sell Oil Royalties for Top Dollar
If you want to sell oil royalties for the highest possible amount, there is only one way to do it. You absolutely MUST get your property in front of a large number of mineral rights buyers. Many mineral owners make the mistake of selling royalties after getting just a couple offers and assume they got a good deal. You want to ensure that you get your property in front of the largest number of buyers so they compete to pay you the highest possible price. As a mineral owner, your goal is to find the buyer who can pay you the highest amount. When you only let 1 or 2 buyers see that your property is for sale, you are not getting the true market value.
Many mineral owners make the mistake of selling royalties after getting just a couple offers and assume they got a good deal.
Imagine that you are going to sell your home. Most home owners put their property on the MLS because it allows every buyer in the market to know that your property is available for sale. All of these buyers are now aware your property is available and can submit offers if they are interested. Now imagine that you put up a for sale sign in your front yard. The only people that can even seen your property is for sale are the few that drive by. Will you get the most for selling your home listing it where everyone can see it, or where just a few can see it? Obviously you’ll get the most money sell oil royalties by allowing every buyer in the market to know it’s for sale.
Where to Sell Oil Royalties
As a mineral owner, you have numerous options when you decide to sell oil royalties. However, not all of these options are in your best interests. If you want to maximize the value of your property, you need to sell oil royalties the right way by putting your property in front of a large audience of buyers.
Bad Options to Sell Oil Royalties
- We buy minerals websites: A quick google search will show you hundreds of websites offering to purchase your mineral rights. You may find a good buyer this way, but it’s also extremely time consuming to visit all these websites. In addition, you have no idea who you are dealing with. Is it a legitimate company who pays top dollars or someone trying to take advantage of you?
- Offers Received in the Mail: If you’ve owned mineral rights for any length of time, you’ve probably received numerous offers in the mail. There are a lot of reasons not to accept an offer received in the mail, but that main one is that you’re only working with a single buyer. There’s no guarantee the offer is going to be a fair market price offer.
- Local Brokers: Depending on where you live, you may have local brokers in your area or people who buy mineral rights locally. While you may find a few offers locally, the number of buyers is still limited. Unlike in housing where people who are local know the pricing, there are mineral rights buyers across the country who will pay top dollar for royalties anywhere in the country.
Best way to Sell Oil Royalties
The best way to sell oil royalties is to list your property online with US Mineral Exchange. The reason we recommend their service is because you can create a single listing, and then thousands of mineral rights buyers will know your property is for sale. When you list with US Mineral Exchange, it’s the same as putting your home on the MLS. Mineral rights buyers frequent US Mineral Exchange looking for royalties to purchase so you’ll instantly receive multiple offers when you sell oil royalties. If you want to get the highest possible amount when you sell oil royalties, list your property with US Mineral Exchange and let them help you get them sold.
Keep in mind that you should also consider offers you’ve received in the mail and through other sources. As a mineral owner, the way to make a smart decision is to get as many offers as possible. You should keep any offers you’ve received and then list with US Mineral Exchange. This will allow you to compare all the offers you received and see which offer is the best one to meet your needs.
Free Consultation
If you own mineral rights and have questions, fill out the free consultation form below. We can help you with the following questions:
- Mineral Rights Value
- Evaluate whether you have a fair offer to sell mineral rights
- Answer questions about selling mineral rights
- Understanding Market Value of Mineral Rights
- + Any other questions related to mineral rights!
No matter what question you have regarding your mineral rights, we can help! We usually respond to your inquiry within 1 to 2 hours!
Whether you want to sell mineral rights, determine mineral rights value, or simply have some basic questions regarding your mineral rights ownership, fill out the form and we will quickly be in touch.
