Ever since the real estate bubble burst a few years ago, foreclosures and short sales have flooded the market. While many first-time home buyers don’t mind a little repair work, buying a major fixer upper can be extremely overwhelming. Banks and homeowners that are “underwater” are not going to want to put a dime of repairs into a house before selling it. For this reason, “as-is” condition exists to alert the buyer that the home will be purchased exactly how it’s being shown.

The “as-is” condition in real estate protects the seller from being held responsible of the home’s condition. The buyer receives no guarantee that the home is any kind of livable condition. This doesn’t always mean buying a home “as-is” is a terrible idea, however, and for the handy homeowner, it may just allow them to buy more house for less money.

One of the most important things you can do when buying a home “as-is” is to get a thorough inspection of the property. Ask around for referrals, and conduct a quick phone interview to feel confident in your inspection. Asking how long they’ve been licensed and what kinds of homes they generally inspect may help you find your ideal inspector. Unfortunately, even the best inspectors can miss minor and major problems.

Another important piece to the “as-is” puzzle is to get a detailed disclosure from the seller. Almost every state requires that a seller fill out a disclosure to fully notify the new owner of any problems with the home. Unfortunately, in the case of REOs (real estate owned or bank-owned properties) the banks have never lived in the home and sometimes have never even stepped foot on the property.

Lastly, the final smart decision for buying a home “as-is” is to make sure you hire an experienced buyer’s agent to help you assess the value in taking on such a project. For some neighborhoods, buying a fixer upper or distressed property can be extremely profitable, but for other neighborhoods, you’re likely to over improve. Not only can Denver real estate agents help you decide what areas are right for you, but they can also negotiate a great deal on an “as-is” home, which is, of course, one of the best reasons to buy a property in need of repairs. Most experienced agents know exactly how much you should expect to pay on an “as-is” property and can help you get the price you’re looking for.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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