A lot of mineral owners want to know who buys mineral rights in Texas. What most mineral owners are really looking for is how to sell mineral rights in Texas. We are going to explain everything you need to know about who buys mineral rights in Texas. Don’t sell mineral rights in Texas until you carefully consider this information!
Who buys mineral rights for top dollar?
Figuring out who buys mineral rights for top dollar is what most mineral owners want to know. Let’s get the answer out of the way quickly. There is no one specific buyer who is always the best buyer. It depends on your property and each individual buyers assessment. However, you CAN put your property where the best mineral rights buyers in Texas are looking.
The best way to locate who buys mineral rights in Texas is to list your property at US Mineral Exchange. There are thousands of buyers on their website looking for property to purchase. Listing will enable you to quickly locate a quality buyer. You’ll find out why this is so important below. Just as important, listing your property at US Mineral Exchange will allow you to waste less time doing it on your own and you’ll make more money. The short answer to who buys mineral rights in Texas is to list your property where all the buyers are located and let them come to you! Check them out at www.usmineralexchange.com
Shady Buyers – Use Caution!
When it comes to locating mineral rights buyers in Texas, you need to be careful. If you want to sell mineral rights on your own you will be in for a challenge. The types of buyers listed below are all the types of buyers you will encounter. You’ll be lucky if you can simply avoid getting taken advantage of. Getting the best price when you sell is highly unlikely. The reason is that there are literally thousands of buyers out there. Even if you worked on this for months you’d end up talking to less than 1% of mineral rights buyers in Texas.
With that healthy dose of caution in mind, here are the types of buyers you will encounter when you sell mineral rights in Texas on your own:
Flippers: You will find A LOT of websites out there who are doing this. In our estimate over 60% of “we buy mineral rights” type website are flippers. You do not want to work with a flipper. Their goal is to get you to agree to a price, then find a real buyer, and make a huge amount of money in the process. This matters because the money they take off the table should have gone to you!!!
As an example, a flipper will get you to agree on a set price. Let’s say you agree to sell for $2,500/acre. They will then go find an actual buyer who is willing to buy your property for $5,000/acre. All the flipper did was get you to agree on a price that was below market value and then took advantage of you by taking your property to a real buyer and getting a price that’s closer to market value.
The worst part? They will almost always tell you they are the buyer. They will lie directly to your face. You may even sign a contract with them where they appear to be the buyer, then when you sign the deed at the end, the company name on the deed is all of the sudden a different company. This is usually because the real buyer paid a higher price and the person who had the contract to purchase your property simply sold the contract to another party. Unfortunately it is extremely difficult to tell if you are working with a flipper or a real buyer and mineral owners get taken advantage of frequently here.
Option Agreement Buyers: Some flippers are more obvious. If you are presented with an “option to sell mineral rights” type of agreement, walk away. This is almost always someone who is getting you to lock into a price and then flipping it someone else for a huge profit.
Low Ballers: When you want to know who buys mineral rights in Texas you end up coming across a lot of low ballers. These types of buyers will make you an offer they know is far below market value. They will assure you it’s a fair price. They prey on the fact that mineral owners have no idea what their property is really worth. They make an offer on your property and will give you every assurance it’s fair. Never trust the person buying something from you to set the price and tell you it’s fair. You have to get multiple competing bids to know if an offer is fair.
Tight Deadline Buyers: These types of buyers will put an unnecessarily short time line on an offer. You may talk to them for the first time and they give you as little as 24 hours to decide. Do not be pressured to accept an offer quickly. There is no reason to rush!!! Buyers use this tactic all the time to create a sense of urgency. Without any information on what their property is worth and assurances it’s a fair offer, mineral owners quickly sell and make a huge mistake. We understand you just want the process to be quick and easy and move on, but do yourself a favor and don’t give into these types of buyers.
Last Minutes Changes Buyer: When you are working with a buyer who changes a bunch of things at the last minutes, that should be a big red flag. Did your mineral deed have one legal description on it and now the buyer is including other legal descriptions in the sale? Buyers can buy property for free if you don’t catch this trick! Make sure you are only selling the property you intend to. A last minute change to the legal description is a red flag. Also, watch out for a last minute change in the who the buyer really is. This isn’t always a bad thing but if you have been working with ABC company and when you sign the deed at the end they list XZY company, something shady might be happening.
Physical Mail Buyers: Have you received an unsolicited offer to sell mineral rights in the mail? You’re not alone. These buyers send out thousands of letters each month to buyer. The letters even appear to be personal in nature listing your name, details about your property, and even an offer amount. These buyers are nearly always far below market value. They capitalize on two things. 1. They make the process super simple. You weren’t even looking for who buys mineral rights and you found a buyer. 2. They assume mineral owners will not make any effort to find competing offers. They are able to take advantage of many mineral owners by sending low ball offers in the mail.
[alert type=”notice” close=”false”]Important Tip: If you are going to sell mineral rights on your own, which we strongly advise against, make sure you are working with a true end buyer. Verify the person you are talking to is the end buyer for your property and not someone else. If it’s someone else, you’re talking to a broker not a buyer.[/alert]
Figuring out who buys mineral rights in Texas is a challenge isn’t it? If you can manage to avoid all the tricky buyers above and locate a true buyer, you’ll be working with one of the following types of buyers:
Individual Investor: There are some buyers out there who are very wealthy that buy mineral rights personally. These are generally people who worked in the oil and gas industry for a long time and know it well. Most of these buyers don’t have a website and don’t actively market. They rely on a company like US Mineral Exchange to locate properties for purchase.
We buy mineral rights websites: When you do a google search for “who buys mineral rights” there are definitely some legitimate companies out there. With that said, every company is going to value your property differently. The key is to locate the buyer willing to pay the highest price.
Hedge Funds/Private Equity: These are typically the buyers who pay the highest price. The catch? You won’t find 90%+ of them online. These are the wall street backed buyers who have significant funding specifically to purchase mineral rights. They find their properties by active marketing
Best way to Sell Mineral Rights
Figuring out who buys mineral rights and then selecting the best buyer is nearly impossible for the average mineral owner. You have to dodge all the shady buyers listed above AND locate the legitimate buyer who can pay the highest price. If you want to sell mineral rights in Texas for the highest value, work with an expert. We always recommend mineral owners list their property with a reputable company like US Mineral Exchange. Don’t spend time figuring out who buys mineral rights. It’s an effort in futility and even if you find a legitimate buyer you will likely sell below market value.