Are you looking for a mineral rights broker? If so, this article will help you find the best mineral rights broker. In addition, we’ll help break down all the important components of finding a mineral rights broker. After reading this article, you’ll know what to look for and be able to find the best mineral rights broker for your personal situation.
Types of Mineral Rights Brokers
Many mineral owners make the mistake of believing that all mineral rights brokers are the same. They assume that a mineral rights broker will be just like a real estate agent. They are there to serve your best interests and help you maximize the value of your property. In oil and gas, mineral rights brokers come in a variety of different types. As a mineral owner, you need to know the difference between the different brokers in the market today and how to pick the best one. Before picking a mineral rights broker, read the following descriptions so that you can be prepared for which type of broker you are speaking to:
Landman Broker: The landman broker is any broker that approaches you directly at your door. The landman broker is NEVER looking out for you. They have one goal, and that’s to pay you the absolute least they can for your property. They will usually have the best sales pitch, assure you that you’re getting the absolute best for your property, and then put a time limit on how quickly you need to accept the offer. Working with this type of mineral rights brokers is a sure way to be get the least value for your property. Nearly all of these door to door brokers will offer you a fraction of what your mineral rights are worth, then quickly turn around and flip your property to buyers who are actually paying market value. Do not get scammed!
Company Landman: There are many oil and gas operators who will send a company landman out to negotiate a lease for the operator. These landmen are working on behalf of the oil and gas company, and as such, are trying to pay you the lowest they can to save their company money. With that said, company landmen do sometimes pay reasonable amounts for your property and there is nothing wrong with signing a lease with a company landman. Just remember that you do have the right to negotiate the best possible lease bonus, and best possible lease terms.
Caution: If you are approached at your door by anyone interested in leasing or purchasing your mineral rights, ask them who they are working for. Many landman will say they are working “Behalf” of a large operator, when in fact they are working individually. The best way to verify they are actually an employee of the company is to request their e-mail address. Their e-mail should end with the large operator they represent if they are being truthful.
Letters in the Mail: If you’ve received and offer to sell mineral rights in the mail, you should be extremely cautious. There are a number of companies who send out thousands of letters to mineral owners each month. Their goal is very simple. They send thousands of these letters and offer you the absolute lowest possible price for your mineral rights. All they need is one person to accept the offer and they can make a large amount of money. Don’t be that person!
We Buy Mineral Rights Websites: The internet it filled with hundreds of “we buy mineral rights” websites. These websites all offer to pay you “top dollar” for your mineral rights, but the reality is much different. 99% of these website are simply a single buyer who pulls in leads. While it’s possible they could offer you a fair price, the majority will try and pay you the least amount possible so they can profit more. When working with a single buyer, you are limiting how much you can make when selling mineral rights through a mineral rights broker. You want to get the maximum value possible, and that means getting your property in front of a large audience of buyers.
US Mineral Exchange: We highly recommend that you select US Mineral Exchange as your mineral rights broker. Why? Their company will help you get your property in front of thousands of buyers from all over the country. You won’t waste time with low ball offers from door to door brokers or spend hours submitting your information to websites who claim top dollar. By creating a single listing at US Mineral Exchange, you’re putting your property online for the world to see. This allows buyers to compete to pay you the highest possible price for your mineral rights.
Pick the Best Mineral Rights Broker
Unfortunately, not every mineral rights broker is created equal. In fact, the oil and gas industry is filled with brokers who have one mission. To pay you the least amount of money possible for your mineral rights. As we discussed above, there are so many mineral rights brokers around that just picking the right broker can be extremely difficult. Here are the things you need to ensure when you pick you mineral rights broker:
- Market Size: The worst thing you can do is pick a broker who isn’t a broker at all. Many brokers are really buyers who want to purchase your property for the lowest possible price. When you pick the best mineral rights broker, you need to find one that will get your property in front of a large number of buyers. The local broker you know is highly unlikely to have a large network of buyers at their disposal. Find a mineral rights broker who can get your property in front of a large audience so those buyers can compete to pay you the highest price.
- Flippers: Any offer by a door to door broker or that you receive in the mail is very likely coming from a flipper. A flipper is someone who is going to buy your property and immediately sell it. They’ll typically try and pressure you to sign quickly or claim to be making you a very fair offer.
- Option Agreements: If you receive any offer and it’s an “Option Agreement” be extremely careful. Option agreements are used to lock up your property for a long period of time (60 to 120 days) while the “buyer” goes and finds the real buyer. They’ll give you an option for $1,000, then go find someone who will pay double that and make money on the difference.
To find the best mineral rights broker, you need to pick one that’s not working against you. A good mineral rights broker has access to a large market of buyers, and they will work to get you the highest value possible for your mineral rights. We consistently recommend US Mineral Exchange to mineral owners because they don’t work against you by trying to flip your property. They work on your behalf to find a buyer that will pay you the highest possible price. If you are in the market to sell mineral rights, lease mineral rights, or sell royalties, listing your property at US Mineral Exchange is the way to go.