Letters of Intent LOIs for Commercial and Residential

[Turner Monroe]

The idea behind a letter of intent seems solid to me, to explain your offer to purchase without the pages of legal forms, and it's not legally binding so you don't have to worry about contingencies until you get into negotiations. They're fast to fill out and can clearly state your case for why you're offering what you're offering. I could also see the downside of the LOI as not being perceived as a serious offer.

So, what's your thoughts on using letters of Intent? It seems to be somewhat common for commercial, but does anyone use them to make offers on residential properties? Either way do you use them ever, why or why not?