Are you looking for a mineral rights broker in North Dakota? If so, we can guide you through the process. We are going to show you exactly how to pick the right mineral rights broker in North Dakota. Before you sell mineral rights carefully consider your options. Picking the wrong broker can be a costly mistake. We are going to tell you exactly how to find the best mineral rights broker in North Dakota.
The ideal mineral rights broker in North Dakota
When you start looking for a mineral rights broker it can be confusing. You need to figure out how to locate a good broker. You also need to know what makes a good broker! Here are some of the most important things to look for in a broker:
- Large Network: The single most important factor in picking a broker is their network. By network, we are referring to the number of buyers the broker works with. This is incredibly important. The reason is that the value of mineral rights is highly dependent on locating the right buyer. The right buyer is the one who can pay you the highest price. A good broker will have access to thousands of buyers. The vast majority of brokers you will stumble across have a very limited number of buyers. This significantly decreases the chance you’ll get a good price when you sell mineral rights.
- Web Based: There are a lot of local brokers who will offer to sell your property. The problem with going this route is that they have a very limited reach. They only know a few people locally and don’t have any way to get your property in front of large numbers of buyers. Ideally a good mineral rights broker in North Dakota will have a web based business that gets your property in front of buyers all over the country.
- Not a buyer: A lot of mineral owners end up just working with a buyer. The problem is that buyers are motivated to pay you the least amount possible. They will tell you they are making a fair offer, but you can’t trust someone buying something from you to tell you the price is fair. Working directly with a buyer or a broker who also buys will usually lead to below market prices.
- Guidance: To select the best mineral rights broker in North Dakota you need someone who will guide you through the process. They understand the purchase and sale agreement, mineral deed, escrow process, and standard due diligence terms. They will also be able to market your property the right way to position it for the best price. A good broker will handle everything for you, ensure you get the best price, and help you avoid costly mistakes.
- Fixed Commission: The best brokers work on a fixed commission. Commission is typically a buyer paid expense at closing. When you sell mineral rights it’s important to know how much your broker is making. 6% is standard industry practice. When a broker is making a fixed amount in commission their interests are aligned with yours. They make more money as you make more money! We have seen brokers charging 10% to 20% in a lot of cases so be careful who you select. When you talk with a broker, find out how much they will make. If they tell you they are making nothing that’s a big red flag. Here is an example of what happens. What a lot of “brokers” do is tell you they are working on your behalf. A buyer makes an offer of $2,000/acre and they come to you and say you got an offer for $1,500/acre. You accept the offer for $1,500/acre. What just happened? The broker just made a 25% commission on your property!! That money should have gone in your pocket.
Recommended mineral rights broker in North Dakota
Our recommendation for the best mineral rights broker in North Dakota is US Mineral Exchange. The reason is that they meet all the qualities of a broker you should look for. In addition, they have a track record of helping mineral owners get the best prices. We have spoken to a large number of mineral owners who listed with US Mineral Exchange and they were very happy with the results. We have referred a number of owners to US Mineral Exchange and they have walked away happy. You can check out some of the success stories on US Mineral Exchange for additional information.
If you want to find a mineral rights broker on your own our recommendation is to simply make sure they meet all the qualifications above. Don’t be afraid to ask direct questions to ensure you are working with the right person. Find out exactly how much they are getting paid and how they will work to get you the best price.
Do it yourself vs mineral rights broker
Another important thing to consider is the option of doing it yourself. We see a lot of mineral owners fall into this trap. You can sell mineral rights on your own pretty easily. Why bother with a broker? A simple google search for buyers will give you hundreds of results. You can reach out to them and get a few offers.
The reason we strongly recommend not doing it yourself is that you will end up losing out on a lot of money. Mineral buyers know that mineral owners don’t know the value of what they have. They will make an offer to sell mineral rights that’s far below market value. They will then put pressure on you to accept. With limited information many mineral owners accept below market offers. Even if you spent months talking with buyers you would talk with less than 1% of the buyers out there. Working with a reputable broker is simply the only way to ensure you are getting the best possible price when you sell. In addition, you get all the protection and guidance of working with a broker. It’s truly no contest that working with a broker is in your best interests.
