The following are just a few factors that should be considered when investing in an "as is" property.
Is it a Deal or a Sinkhole for Money?
"As is" properties can be very deceptive. You might not be able to tell just how much work s involved unless you get an expert opinion. A contractor or home inspector should be able to point out the possible problem areas and give you a good estimate on the amount of money you can expect to spend to bring the house up to scratch.
Are the Repairs Cosmetic or Structural?
You may be concerned by things like peeling paint or distressed carpet but what you should really be worried about are the problems that can potentially cost a lot of money. Roof repairs or electrical problems, even issues with the foundation or cracking are all things you should be wary of when a property is being marketed "as is".
Will You Have to Live There During the Repair Work?
If you are buying the property as your primary residence you also need to consider if you can function in the home while the repairs are being done. Otherwise you should factor in the inconvenience of having to put off the move while repairs are under way.
What are Your Investment Goals?
When you are purchasing real estate you are making an investment, but you may have either a long-term view or a short-term view on your ideal turn-around time. If you are interested in buying the home to attempt to fix it up and then realize a profit on the sale you need to make sure this will be realistic when you get proper estimates of how much everything might cost. If however, you plan to hold on to the property for a longer time frame then you have more leeway in recouping your investment.
Are there Other Factors That Add Value?
A property might be on the market to be sold "as is" but there may be other strong positives that weigh heavily in your decision to purchase. Location is a big influence on value and some locations demand relatively high base prices even for "as is" homes in poor condition. Similarly if the property has a good flow and generally has a solid structure it may be worth ripping into its fixtures and fittings to bring out the potential that lies beneath.
Now, when your real estate agent says she has a property to show you but the seller wants to sell "as is" you can make the decision that is best for you making sure to consider all the factors discussed above.