Should You Buy A Home Listed “As-Is”

homeAfter the recent housing crisis, buyers were seeing more and more homes listed “as-is”.  This is a strategy that was being used to benefit sellers, but what was not always clear was whether or not this was a good deal for buyers or something that would pose problems later, states Dean Graziosi.

In legal terms, “as-is” is typically used to cover more than the reluctance on the seller’s part to make the necessary repairs that the home may need.  It is also used to release the seller from any liability or responsibility for the current condition of the home.  This means that the buyer purchases the home without a guarantee that it does not have any major problems.

In the majority of cases, there is a reason why a seller chooses to sell their home in “as-is” condition.  This makes it even more important for potential buyers to have a professional inspection performed on the property.  You should choose an inspector who is experienced, and will know what to look for during the inspection process.  An inspection is a valuable source of information for buyers; it can provide them with information relating to problems with the property and may even show them areas that may become an issue in the near future.  If you’re interested in a home listed “as-is” you should always have an inspection performed.

When purchasing a home listed “as-is”, it is important that the buyer understand that repairs on the home will likely not be made.  If the home is an REO, which is a home that is owned by a bank, it may be possible to negotiate some type repairs being performed.  This is especially true if the repairs will be taking care of any safety issues in the home.  Repairs may also be made if there are government mandates that must be followed in order for the home to be sold.

If you’re a buyer who has the ability and funds necessary to make some of the repairs needed, then you may not have a problem purchasing an “as-is” home.  However, if you do not have the necessary knowledge or skills, the purchase of an “as-is” home may become rather expensive.  Once you finalize the sale of the home, it is your responsibility to maintain and repair, which means that you should only make the decision to purchase after you have thoroughly thought over everything that is involved in the process, states Dean Graziosi.  Purchasing an “as-is” home is not a decision that should be rushed into, it should only be done after you have decided it is something that you can financially live with.

Deal of the Month #8 – Ugly House Pretty Profits

This is the house that everybody passed up. It was in foresclosure and nobody snapped it up because it was so ugly, and in such terrible shape. That’s too bad for everyone who missed out, but very good for me. By the time I found it, the foreclosure process had already been completed. This was sad in a way, because I couldn’t deal with the owner. If I would have found the house sooner, I would have been able to help the owner prevent the foreclosure from going on their credit. (Just as I teach using the techniques in my AFF program, (www.automatedforeclosurefinder.com).

However, by the tme I found it, the bank owned it, (REO). Now here’s the kicker…I paid $60K for this “ugly duckling” put $30,000 into it to make it pretty – AND put $100,000 cash in my pocket. Oh, and I didn’t sell it to do that! So, how did I do it? You’ll have to watch the video and find out…

See the other Deal of the Month Videos and more Real Estate Investing Videos at DeansMedia.com

Deal of the Month #2 – Dean Graziosi Cashes in on 21 Acres

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How Dean Graziosi Cashed in on “21″ With None of His Own Money

No, I’m not talking cards, I’m talking acres. In this month’s “deal of the month” you’ll learn how I structured a great deal on 21 acres I wanted to subdivide, by thinking a little differently. It wasn’t a bargain piece of property, I paid the seller full price for it. I also had some challenges because I didn’t have the money to buy the property and there were upset neighbors who didn’t want me to do what I had planned.

Watch and learn how I bought the property using none of my own money, and how a complaint from one of the upset neighbors, gave me an idea that made everyone happy AND skyrocketed my own profits on the deal. You’ll walk away from this month’s deal with a lot of new knowledge and new capabilities to do similar deals yourself.