Sell a royalty interest
Sell a royalty interest
Do you want to sell a royalty interest? No matter who the operator is there will be strong demand for your property. Many royalty owners decide to sell a royalty interest. Perhaps you could use the cash for something else or you simply want to diversify your portfolio. Whatever the reason, you can expect to find a lot of interested buyers when you sell a royalty interest.
How to sell a royalty interest
There are two ways to sell a royalty interest.
- Sell on your own
- Work with an expert
Before you sell on your own, you need to carefully consider your options. When you sell a royalty interest it’s important that you get the best possible price.
Sell a royalty interest on your own
The biggest mistake we see royalty owners make is deciding to sell on their own. This happens all the time because it is very easy to get offers. Do a quick google search for selling a royalty interest and you’ll find tons of buyers. The average royalty owner will submit their information to a couple websites, accept the highest offer, and assume they got a good deal.
What royalty owners don’t know is that you rarely get the best price this way. A lot of the buyers you can quickly locate make low ball offers. They do this because they know you aren’t likely to spend much time looking for buyers. With no competition, they can make low ball offers and you are likely to accept.
Sell a royalty interest with an expert
This biggest reason to sell a royalty interest with an expert is exposure. When you sell on your own it’s like putting a for sale sign in the front yard when selling a home. You may get a few people who drive buy and make an offer, but you’re unlikely to get the best price. The key to getting the best price when you sell a royalty interest is competition. When royalty buyers are competing for your property it drives up the price.
If you want to sell a royalty interest we recommend listing the property at US Mineral Exchange. Working with a trusted company in the industry who can quickly get your property in front of thousands of buyers is your best bet. You’ll quickly get multiple offers to sell oil and gas royalties. We have spoken to many royalty owners in Texas who sold royalties at US Mineral Exchange and got significantly more money. Most royalty owners who do it on their own leave a lot of money on the table.
How to estimate royalty interest value
If you are receiving oil and gas royalties each month, you can get a very rough estimate of the value. Keep in mind that getting a fair offer to sell oil and gas royalties is dependent on getting multiple bids. If you have an offer to sell royalties that falls into the range listed below, it may still be a below market offer. Get competing offers to ensure you are getting the best price.
As a general rule of thumb, the value of a royalty interest is anywhere from 4 years to 6 years times the average amount you receive each month. To see how much you could sell a royalty interest for, enter the average amount you receive in the first box below:
Questions about selling a royalty interest?
If you want to sell a royalty interest fill out the form below. We can help answer your questions about selling a royalty interest and get you pointed down the right path. Our experts talk with owners every day and we look forward to hearing from you.