As more and more homes being sold are bank owned and foreclosure properties as a consumer you are going to have more choices in homes and at better and better prices.  This is the good news.  The bad news is you have more to navigate in the sale of a home than you did before.

This is a market where both sellers and buyers really really need a professional to help them navigate territory of a home purchase or sale. 

One of those issues is the "AS IS" home.  There are more and more on the market that are labeled as such both because banks rarely ( although sometimes do) make repairs and many sellers have no funds with which to do so. 

One misconception is that if you purchase an "AS IS" home you do not get to have an inspection contingency. This is not true, however there are some things you should know about making an offer and having an inspection on an "AS IS" property.

1. The owner intends to make no repairs and likely has or believes they have priced the home according to it's condition.

2. You still should do an inspection, at the very least to be sure there are not conditions you missed when going through the house that may be more serious than you are willing to take on.  Also you may still be willing to take the house on with the repairs that were not at first noticable seeing the home, but not at the price you offered before you knew about the problems.   If you yourself are a contractor or a structural engineer or some one knowledgable enough to do your own inspection, it's ok to do your own, just be sure to check everything! 

(one of my very knowledgable clients insisted on doing his own inspection, I agreed so long as he checked everything that an inspector would have, he agreed, then later when he had done renovations on the home he sold it.  The new owners did an inspection and found major issues in the attic and under the roof tiles.  He had not checked this area at all since the home was only 10 years old.  Be sure you check everything no matter how knowledgable you are.  Most folks should hire a pro!)

3. Do not use repairs that were easily identified or that were disclosed by the owner as issues as reasons to negotiate on price.  This is dishonest and unfair and will likely lead to a purchase that falls apart.

4. Realize that you are purchasing the property as it sits regardless of what you find in inspection, however an inspection gives you the option to either walk away or maybe negotiate a new price if you find issues that are serious on the inspection.  This is a protection to you.  With out an inspection clause on an "AS IS" house you risk your earnest money and have obligated yourself to purchase the house.

5. Realize that while you are able to ask for price concessions on a home owned by a bank based on your inspection, likely they will not budge on price.  ( there are some exceptions)  This may mean you pay for an inspection on a home you do not get to buy.  However it is a small price for being able to buy a home with out problems you are not prepared to deal with and for the privilege to purchase homes at a discounted price.

6. As is may also mean that any and all junk and debris you see when you see the home becomes yours at closing.  (Great if what you see if a valuable baseball card collection or priceless antique desk....not so great if it is old car tires, old cars,  water damaged play boy collections and so on.)

7.  If you would like to be able to make an offer that waives the inspection so that it is stronger and you are more likely to be a chosen bid, one safe way to handle it is have your realtor let the listing agent know you are doing a pre-inspection, be sure it is active and that the listing agent will wait for your offer.  Then if the inspection is to your liking you can safely write an offer with the inspection signed off.  ( best of both worlds!)

So we recommend to our clients that they do not shy away from "AS IS " properties, we just are careful to protect them with the contracts we write and with our negotiations.  also keep in mind "AS IS" is not just homes that are trashed ( although some are) it is also some times a very nice home that is bank owned or owned by an owner that has put so much money into it that they cannot give you any more.  So do look at "AS IS" homes they can be a great opportunity....happy shopping!