down and write a letter of intent to buy the empire state building and it would be, utterly non binding. Why? Because my intent can change. I intend to buy the Empire state building, but who cares what my Intent is? Many traders and Brokers treat a Letter of Intent as if it were holy writ. This is a critical beginner's mistake. As its name indicates _ this document expresses an intent.
Better to encourage them from the start to go the LOI route. 3.) Hopefully, by this point you have developed more than one prospect. If you receive LOI s from more than one prospect don't just accept the one with the highest price. Be sure to take into account all the details of the offer as well as the qualifications and background of the buyer. This is especially true if you are financing part of the sale _ getting a slightly higher price from a weaker buyer who runs the business into the ground and then doesn't pay you is of no benefit. 4.) It is perfectly all right to negotiate the contents of the LOI with the buyer before you have accepted it