If you want to know how to sell oil and gas royalties you’re in the right place. We are going to walk you through step by step! We’ll help you avoid the common mistakes royalty owners make. We’ll show you how to maximize the value when you sell. If you are trying to figure out how to sell oil and gas royalties carefully read this article!
Estimating Oil and Gas Royalties Value
Before we talk about how to sell oil and gas royalties, it’s important to start with the value. Most royalty owners do not know what their royalties are worth. When you sell oil royalties it’s important to have a basic value estimate. Knowing the estimated value of oil and gas royalties in Texas allows you to determine if the offer fair. To estimate oil and gas royalties value in Texas all you need is the average amount of your last 3 months of check stubs. Use the oil royalty calculator below to help you determine the estimate value:
It’s important to understand that this is just an estimate. Your property could be worth more or less. It really depends on a large number of factors. Now that you have an estimated value, let’s look at how to sell oil and gas royalties in Texas.
How to sell oil and gas royalties in Texas
When you want to know how to sell oil and gas royalties in Texas, you will eventually determine you have two options. You can sell oil and gas royalties on your own, or work with an industry expert who will guide you through the process. Every royalty owner is different but they all have the same goal. To sell oil and gas royalties for the highest price. We are going to show you how to sell oil and gas royalties for the highest price.
Do it yourself
Fair warning! If you decide to sell oil and gas royalties on your own you are likely going to sell far below market value. We don’t advise royalty owners to sell on their own. Doing so requires you to do a lot of work to locate buyers, hope you are getting a fair price and hope that you don’t get taken advantage of. With this in mind, if you want to know how to sell oil and gas royalties on your own, here is the basic process:
Do a quick google search for “Oil and Gas Royalty Buyers“. You will find lots of companies advertising directly to you at the top of the page. You will also see lots of websites for various companies down below. At this point you must start contacting individual companies which can take significant time. Each company will require you to fill out a form and provide information to give you and accurate estimate. Once this is complete you’ll have a few offers.
This is the point where most royalty owners make a big mistake. After contacting just a few royalty buyers they quickly accept the highest offer they received. They are given assurances that the offer is fair and they are working with a trusted buyer. The reality is that you are almost never getting a fair price and there are a lot of buyers out there who take advantage of you. They know that you don’t really know the value and finding a better offer will take time so they convince you to sell quickly.
You will almost always end up selling far below market value when you do it yourself. For this reason alone we highly recommend you avoid selling oil and gas royalties in Texas on your own.
Work with an Expert
Figuring out how to sell oil and gas royalties in Texas is tough! You’re confronted with thousands of options on where to sell oil and gas royalties. You aren’t sure what the value is and you don’t know how the process should work. If you want to know how to sell oil and gas royalties for the highest value, we strongly suggest you work with an expert.
Here are the reasons you should work with an expert rather than doing it yourself:
- Maximum Value: The most important reason to sell royalties with an expert is getting the highest offer. When you sell on your own, you’d be lucky to contact even 1% of the buyers out there. By working with an expert you can reach thousands of buyers quickly. When you get your property in front of thousands of buyers it ensures you get the best price. When thousands of buyers are competing for your property this competition drives the price up.
- Quality Buyers: When you sell on your own, you’re taking a big risk. There are a lot of people out there who take advantage of mineral owners. They know that most royalty owners do not know how much their property is worth. They will tell you that you’re getting a great deal but you’re usually getting a very low offer. In addition, simply finding real buyers is a challenge. There are a lot of people who pretend to be buyers and get you to sign a contract and then sell that contract to an actual buyer for a huge profit. That’s money that should have gone in your pocket.
- Speed: If you want to sell quickly, working with an expert is your best option. Doing it on your own is time consuming and frustrating. The fastest way is to work with someone who has industry experience to quickly get your property in front of the right people.
- Convenience: When you sell on your own, there’s a huge learning curve. You have to figure out who all the best buyers are, submit your information, compare all the offers, review the legal agreements, and hope you are getting a fair price. This is all time consuming and difficult to do. The worst part is that you’re not even reaching all the buyers in the market so you’re likely selling below market value. Working with an expert allows you to skip all the hassle and get the best price.
- Escrow protection: Once you work out deal with a buyer, how does the process work from there? Do you just trust them to send you the money once you send the deed? When you do it on your own you are exposed to the risk that a buyer will take the deed and not pay.
As you can see, there are some very important reasons that you should work with an expert. You will save yourself considerable time, effort, and frustration and make more money in the process.
Work with an Expert – Our Recommendation
Our recommendation to sell oil and gas royalties is US Mineral Exchange. US Mineral Exchange is a trusted company among mineral owners and the oil and gas industry. They have a history of getting royalty owners the best possible prices. In addition, they help guide mineral owners through the entire process. We believe working with an expert is the best way to sell oil and gas royalties which is why we recommend US Mineral Exchange.