Letters of intent

Letters of intent

Many people are asking about the strategy of multiple offers. Agents many times are only familiar with standard contract offers, not realizing that an offer may be verbal or even written on a cocktail napkin. Contract law is very specific that if two parties have a meeting of the minds, a contract has been reached, regardless of where or how it's written.

I am going to steer well away from anything legal of course, not being an attorney, but let's discuss something for a minute that will make dealing with contracts a little easier for most of you.

In today's world, we need to make sure that our real estate contracts are on an official purchase and sales agreement of some type. The problem there is that most of these contracts are 8-10 pages long. So if we want to make 30 offers, we are burning through tons of paperwork. Most of these pages just need an initial, but it is still time consuming.

A very simple way to get around this is with the use of letters of intent. A letter of intent is very simply a letter to tell the seller what you would like to do. They can be put together very quickly on a word document and can include any information you would like. I have actually made very personal comments and statements in letters of intent that I have sent to sellers of property I want to buy for my family.

There are times when I have put out 30 or more letters of intent at one time. This way it keeps the process simple, and once a seller responds with interest in negotiating, you can then move to in depth negotiations putting the information on an official contract.

Anyone can develop their own template for a letter of intent. Just keep it simple. Introduce yourself, express your interest in the property, and explain any terms you are willing expecting or wanting to negotiate. Then leave your contact information, and send it out.

Remember to keep things as straightforward as possible. Tell them what you want, what you're offering, and wait for the responses. They will come, and all without signing a single contract.


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