LOI vs. Purchase and sales in Maryland

Buying & Selling Real Estate
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LOI vs. Purchase and sales in Maryland

Heath Thomas Jr
Lender · Baltimore MD · Member since 2015 · 201 posts · 66 votes

If you aren't going through a realtor and want to make quite a few offers. Is it acceptable to use a short Letter of Intent rather tan the full purchase and Sales agreement in MD? I assume it is because every realtor must present every offer to their clients.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
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@Heath Thomas Jr well that illustrates a small, but practical reason of why it is important to use an agent who knows what they are doing.

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    LOI's are more common in the slower markets of MD. In the close in areas to DC they are not very common. Personally I handle all things like that verbally. I ask an agent is $X even worth writing up an offer for. If they tell me no, I move on.

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  • Heath Thomas Jr
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    Lender · Baltimore MD · Member since 2015 · 201 posts · 66 votes
    10y

    @Russell Brazil Thank you, Maybe I'll do that to save some time. Additionally, I've been asked for follow- up documents quite frequently. I.e. POF, and EMD copy. Both of these I find to be absolutely useless. Especially because I'm not using cash, I'm using an HML which anyone can get a POF for.

    Can I just not provide those docs when they ask them? All agents must present all offers to their sellers, correct? Would it really make my offer that much weaker if I didn't include those things?

    I just feel like it'll be burning through my checkbook writing out EMD checks.

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y
    Originally posted by @Heath Thomas Jr:

    @Russell Brazil Thank you, Maybe I'll do that to save some time. Additionally, I've been asked for follow- up documents quite frequently. I.e. POF, and EMD copy. Both of these I find to be absolutely useless. Especially because I'm not using cash, I'm using an HML which anyone can get a POF for.

    You probably are not using hard money for 100% of the transaction...and the letter the hard money lender will issue you if you ask is a proof of funds. Some agents will want to see one dated within the last 30 days, but others will be more flexible on it.

    If you want your offer to be taken seriously, then you will provide everything the agent asks for.

    Yes but I think you are probably not familiar with how this take place. The agent calls the seller and says I received an offer, then goes on to tell the seller that your offer is not serious. Offer presented.

    If the agent requires it, and you do not provide it, then yes it makes it that much weaker.  When I receive offers, if they havnt provided me with everything Ive asked for, I pretty much just ignore the offer.

    You write ONE EMD check to your title company and leave the date blank. When an offer is accepted, you fill in the date and give it to the title company. So now you have used the same check for hundreds of offers.

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  • Heath Thomas Jr
    OP
    Lender · Baltimore MD · Member since 2015 · 201 posts · 66 votes
    10y

    @Russell Brazil Thank you for your speedy reply. Before when we were making offers, one of the realtors we work with had the EMD made out to different people.

    Thanks!!!

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    @Heath Thomas Jr well that illustrates a small, but practical reason of why it is important to use an agent who knows what they are doing.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    3Reply
  • Daniel Krotz
    Residential and commercial real estate sales · Crofton, MD · Member since 2015 · 7 posts · 4 votes
    10y

    Nothing wrong with a nonbinding LOI...

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