We’ve already discussed what the value of your royalties is but how exactly do you achieve the highest price possible for your royalties? There are a few things to consider when you decide to sell your royalties and we’ll cover those here.
Timing
The timing of when you decide to sell your royalties may be one of the most important items. The reason is that oil and gas prices will have a large impact on how much your royalties are worth. The total price that a buyer is willing to pay is always a multiple of the income you have been receiving. As oil and gas prices fluctuate in value, the value of your royalties also goes up and down.
If oil and gas prices are both high, the checks you receive will also be higher which causes the amount a buyer is willing to pay to increase. On the other hand, if oil and gas prices are low then the checks you receive will be less and a buyer will not be willing to pay as much. If possible, you want to sell your royalties when the prices of oil and gas are high so that you can get the highest price possible.
Well Life Cycle
Every well has a limited amount of production it can make over the life of the well. Some wells produce a large quantity of oil and gas over their life, and others produce very little. Regardless of whether the well is producing in a large quantity or small quantity, the amount slowly declines over time until it is uneconomic to keep producing. Once a well is uneconomic, it’s shut in and royalty payments completely stop. The royalty checks you are receiving will not last forever and it’s important to know where where your well is in it’s life cycle. Knowing this information can help you negotiate the highest price possible for your royalties.
Find the Right Buyer
Possibly the most important piece of selling royalties is ensuring that you find the right buyer. If you want to sell royalties, you have all the power to negotiate the best possible price for your royalties to ensure you get the best price possible. There are literally hundreds of websites set up all claiming to offer “top dollar” for your royalties. Don’t be suckered into selling your royalties below market value. You want to get your royalties in front of as many buyers as possible so that buyers compete to pay you the highest price possible.
If you want to get the highest price possible for royalties get your royalties in front of as many buyers as possible is by listing them online with US Mineral Exchange. Their service will help you get your property in front of thousands of buyers without having to waste time going from website to website asking for an offer. The professional team at US Mineral Exchange can help you navigate the process and ensure you get the best price possible for selling royalties.
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.
