Do you need to sell royalties? Selling royalties can be a difficult process. How much are you the royalties worth? Who should you sell your royalties to? There are a number of questions when you need to sell royalties and we’ll help you understand all of them below.
How Much Are Royalties Worth
To determine how much your royalties are worth, you need to know how much you have received over the last few months. A buyer will want to see between 3 to 6 months of your most recent check stubs. To determine how much they are willing to pay they will take the average of your checks and then multiply that by the number of months they are willing to offer. It’s important to note that all buyers are NOT equal. Some will be willing to pay much higher (sometimes double!) what another buyer is willing to pay. To maximize the value of selling royalties, you want to get your royalties in front of as many buyers as possible so they can compete to pay you the highest price possible. Check out our selling royalties value article for more in depth information.
Should You Sell Royalties
When determining whether to sell your royalties, it’s important to understand that you are giving up all future income from your royalties. You may decide that your immediate need for cash is more important than receiving royalties in the future so you want a lump sum cash payment today. Whatever you decide, remember that you have the option of simply selling a portion of your royalty income. For example, if you are receiving $500/month and you want to sell half of your royalty income you can get a lump sum payment for half and continue to receive $250/month. Our article about deciding to sell royalties will help explain some of the factors that can affect your decision.
Where to Sell Royalties
Trying to determine where to sell royalties can be one of the most difficult decisions in the process. There are literally hundreds of websites set up offering you quick cash, quick offers, and top dollars. We can tell you from experience that 99.9% of these websites are a single individual buyer who will make you a below market value offer for your royalties. To get the maximum value for your royalties, you want to get your royalties in front of the largest number of buyers possible so they compete to pay you the highest price possible.
If you want to avoid the headache of going from website to website hoping to get a good offer, we recommend listing your royalties online with a reputable company like US Mineral Exchange. Their online service allows you to market your royalties for sale to thousands of buyers by creating a single listing. In addition, US Mineral Exchange consistently gets royalty owners higher offers than the industry average which means you maximize the value of your mineral rights.
Facts about Selling Royalties
There are a few important facts you need to know about owning royalties when you decide to sell royalties.
Timing: When you need to sell your royalties fast, don’t sell your royalties to the first buyer you come to. All buyers will tell you they can “close fast” and “get and offer in 24 hours”. The reason they all claim the same thing is because they know you want to sell royalties quickly and they want you to rush the decision. Rest assured that your royalties can be sold very quickly.
Top Dollar Offer: If someone is claiming to pay “top dollar” you should be very cautious. The only way to truly maximize your values is to get your property in front of a large number of buyers. Buyers who claim to offer “top dollar” want you to feel like you’re getting a good deal when in reality they are paying below market value prices.
You’re in Control: It’s important to remember that you are in control of the situation when you sell royalties. Don’t be pressured by a buyer into selling quickly or taking an offer that is only good for a limited time. There are a very large number of buyers interested in buying royalties which puts you in the position to control how you sell your royalties. When you sell royalties through an online exchange like US Mineral Exchange, you get no pressure offers from all over the country which allows you to decide when you want to sell and for how much.
Questions about Selling Royalties?
If you have questions about selling royalties, please use the contact form below. We speak with royalty owners all the time about their royalties and help answer their questions. We look forward to hearing from you!
Do you have questions about selling royalties? We can help! Simply fill out the form below with your questions and we will contact you.