Submitting an LOI Before Talking to Owner

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March 26, 2026

by a searcher from The University of Alabama - Culverhouse College of Commerce and Business Administration in Denver, CO, USA

Newer to search but it appears to me that it was common practice to talk with the owner before submitting an LOI. Now it appears it is common practice to submit an LOI before talking with the owner. Am I right about historical common practice vs today? If so, for more experienced searchers, how have you gotten comfortable with this changing deal dynamic? How have you adjusted your LOIs so you can adjust for new information post owner conversation?
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Reply by a searcher
from Howard Payne University in Colorado Springs, CO, USA
I just experienced that switch for the first time as well. I much prefer connecting with the seller first to get a better feel for their situation and desired outcomes but was told by the broker they weren't speaking to anyone without at least an IOI but preferably a LOI. I hope it's not a trend that takes off as I believe it shortchanges great deal structures that could return more to the seller based on a connection. This will just push more off-market efforts over time to bypass these types of interferences in deal making.
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Reply by a searcher
in Colorado, USA
I've found this is becoming the norm with main street businesses (<$500k SDE). Larger businesses, I find brokers conduct a more thorough vetting process but are very supportive of introductions to owners pre LOI. Happy to connect ^redacted‌ as I too am searching in the front range, Colorado.
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