Selling a Home As Is in Colorado (A-to-Z Guide)

A homeowner selling a house ‘as is’ in Colorado is telling potential buyers that the owner doesn’t offer any guarantees or warranties about the house.

It’s sold as the buyer finds it, and no repairs will be done to it before the sale.

The standard sales contract used by Colorado real estate agents doesn’t have a formal ‘as is’ condition clause, but you can still market and sell your house as an ‘as is’ sale.

Yes, you can sell a home ‘as is’ in Colorado — without any repairs or updates. But you must make sure that the buyer understands that what they see is exactly what they’ll get.

Buyers are encouraged to pay for licensed home inspectors to examine the house and make a report to the buyer.

Part of the seller’s legal requirements includes giving potential buyers a completed real estate disclosure form.

Let’s review what that form includes.

The Colorado residential Seller’s Property Disclosure (SPD) form is a standard document.

The seller must complete and give it to the buyer, or the buyer’s agent, by the date specified in the sales contract.

This due date should allow the buyer adequate time before closing to complete the home inspections. The seller, however, doesn’t need to hire any inspectors to fill out the form.

The SPD asks only what the seller knows about the property and the seller’s experience with property problems.

You’ll need to read the Colorado disclosure questions carefully. Some ask for current problems. Other questions ask for both past and current problems.

The Colorado SPD form doesn’t directly ask about bed bugs or haunted houses, but you might want to share that if it’s a problem at your house.

It’s always best to be transparent with potential buyers so you don’t end up with unhappy buyers — or maybe end up in court as a result of a lawsuit for failing to disclose a serious problem.

The SPD requires owners:

• selling a house with lead paint to fill out a formal disclosure. This is also required under federal disclosure laws.

• selling a house with structural damages such as foundation issues, a failed septic system, water damage, and fire damage to report these problems. Other issues like lead pipes, unpermitted work, structural changes and termite damage also need to be disclosed.

• selling a house with radon above safe levels and the presence of asbestos must be disclosed. While mold and the presence of polybutylene pipes aren’t specifically noted on the SPD, the presence of the pipes and toxic mold should be disclosed to be transparent.

• selling a house located in a flood zone to tell potential buyers about the zoning. While the presence of fracking operations also isn’t required to be disclosed, full transparency means sharing that information with the new buyer. That should be explained on the disclosure form.

You can leave stuff behind when you sell your Colorado house ‘as is’ with some buyers, but that must be stated on the sales contract and also on the SPD.

Colorado also requires sellers to complete a Green Disclosure that shares information about the home’s energy efficiency.

The Green Disclosure asks for details about the home construction and heating and cooling features. It’s mandatory and must be completed by the seller, not an agent or broker.

After the buyer receives the disclosure and orders inspections, they can ask the seller for repairs — even in an ‘as is’ sale.

If the seller refuses the repair requests, the buyer can terminate the sale based on information on the disclosure and inspection reports.

Buyers cannot be penalized for withdrawing from the sale based on inspections or disclosures.

Expert Insight

What are the common pitfalls related to properly disclosing the home’s condition?

The most common pitfall for as-is sellers in Colorado is misunderstanding what “as is” actually means legally.

Colorado requires sellers to complete a comprehensive Seller’s Property Disclosure covering everything from structural issues to neighborhood nuisances.

“As is” doesn’t exempt you from disclosing known defects — it only means you’re not agreeing to fix them.

I’ve seen sellers lose deals or face legal action because they omitted something they considered minor.

— Sara Garza, LIV Sotheby’s International Realty, Real Estate Broker

A general home inspection is limited, and many of those fall within areas that are outside of an inspector’s ability to access during one single visit.

Because of these limitations, inspectors have a specific duty to disclose “latent defect” type of information.

Latent defects include conditions such as hidden water intrusion behind walls (the condition may exist for a time period prior to being visually apparent), past mold growth (typically behind drywall or other finished surfaces), or movement in the foundation, etc.

Many buyers find out about these types of conditions through years of observation while living in their homes, rather than from an inspector who was only able to inspect the property one or two times.

If you know about something hidden like this, the as-is label does not cover you, so put it in writing.

— Natalia Bassova, Resort Real Estate Inc., CEO & Founder

The most annoying pitfall is when someone had hail damage and made an insurance claim a few years ago, then pocketed the money and didn’t fix the roof.

Then they fail to disclose that in the Seller’s Disclosure, and it comes up late after inspections. I’ve had multiple sellers do this to me, and it backfires on them every time.

Colorado is the #1 state for hail insurance claims, so this is a big issue here.

— Andrew Fortune, Great Colorado Homes, Owner/Realtor

The first step in the sales process requires you to answer the question, “Should you sell your Colorado house ‘as is’ or fix it up?”

Why sell a Colorado house ‘as is’? There are a number of advantages for the seller. Let’s break that question down into the benefits and drawbacks.

Pros of Selling Your House As Is

• You’ll avoid the chore of hiring contractors to do repairs. You also won’t have to supervise the repairs to make sure they’re done correctly.

• Your sale will close much sooner, particularly if you choose to sell to a Colorado cash home buyer.

• By avoiding a Colorado home inspector report, you’ll avoid any negotiations from picky buyers who want to use the report to insist on repairs on your house.

• Skipping home inspections also means you won’t have any new information about your house that must be shared with other prospective buyers.

• Many ‘as is’ buyers also allow you to leave things behind when you move. Some buyers even allow you to walk out without cleaning the house.

Cons of Selling Your House As Is

‘As is’ sales can be challenging, and there are some downsides to the process, including:

• You won’t get the best possible proceeds from the sale of your house. Fixing and selling as a turnkey listing would bring a higher selling price.

• ‘As is’ sales automatically limit your potential buyer pool. Most buyers aren’t interested in fixers.

When you sit down and add up the financial investment to fix your house, the price offered by a Colorado real estate cash buyer might be very appealing.

Real estate commissions, the costs for materials and contractors, property taxes, and the mortgage interest paid during the repair period are a significant drain.

A detailed analysis of the estimated closing costs for sellers also helps you evaluate offers and selling approaches.

Now that you’ve reviewed the pros and cons of selling ‘as is’, let’s focus on answering the question, “How do I go about selling my house ‘as is’ in Colorado?”

You have three main avenues to sell your house in the Centennial State. Let’s start with selling to a real estate investor.

How to Sell a House As Is, Fast and For Cash Directly to an Investor

Who Are Cash House Buyers?

Before we review the pros and cons of selling your home to an investor, we need to explain who investors are.

Real estate investors in Colorado look to buy a house to use as a rental property.

Apart from buying a rental, cash buyers also seek out properties to fix and then resell. This is known as “home flipping”.

Investors who want to buy investment homes in Colorado search for owners who would like to have a sale move quickly, including people:

• selling a house in bad condition
• facing foreclosure
• selling a house during divorce process
• downsizing
• selling a house with past due property taxes
• selling a house for job relocation
• selling an inherited house
• selling a house with a tax lien

Investors generally work with local investor-friendly title companies in Colorado to smoothen the sales process and close quickly.

Pros of Selling Your House As Is Directly to an Investor

• You can sell your house fast in an investor sale. Investors typically favor fast sales — sometimes in a matter of days.

• Investors also typically favor cash sales. That means you skip the buyer qualifications and house underwriting delays during a traditional home mortgage process.

• Normally, you and the investor won’t use real estate agents. This way, you won’t be on the hook to pay realtor commissions.

• Investors generally pay the seller’s closing costs. That’s a major savings.

Cons of Selling Your House As Is Directly to an Investor

• Your offer from an investor will unlikely be market value.

• You won’t have a professional assisting you to make sure your interests are met. Seasoned investors, however, know that they won’t stay in business long if they don’t operate as an ethical business.

Finding the Best Cash House Buying Company

Fortunately, finding a cash house buying company is easy. Narrowing your search to the best company isn’t difficult, but it requires a little research.

You can start with searching the internet by using your favorite browser and keywords like “sell my house fast in Denver CO”, “cash house buyers in Denver CO”, “we buy houses in Denver CO”, or “iBuyer companies in Denver CO”.

Then, you’ll have to check the investor or company website for an “About Us” page where you should find information about the company and the firm’s staff.

However, there is an easier and safer way. By requesting a cash offer on your home from HouseCashin, you can get multiple offers from a collection of already vetted and tested Colorado investors.

If you don’t find the bids acceptable, you can still offer your house for sale as a for-sale-by-owner listing or hire a professional agent to try to find buyers and represent you in the sale.

How to Choose an Ethical Investor?

You’ve found a number of investors and investment companies. You now need to select one with high ethical values.

Let’s start with a basic step. Remove any investors with less than three years of experience from your list. This leaves seasoned investors with experience in the field to close sales.

The next step is to contact the state agencies that regulate investors to see if any of the group has any complaints filed against them by unhappy clients.

The Colorado Division of Real Estate, part of the state’s Department of Regulatory Agencies, receives complaints regarding real estate investors.

Check with that office to see if your prospective investor has clients with complaints.

After you’ve narrowed your list, it’s time to ask the remaining investors for a list of past clients who can recommend their services.

Don’t just accept the list. Take time to call a number of people to ask about their experience with the investor.

Once you’ve narrowed your pool down even more after the interviews, check review websites to see if your prospective investor has any dissatisfied clients posting online.

The last step is to check the local branch of the Better Business Bureau (BBB) for any complaints filed there. See if and how any complaints were resolved.

Were the clients satisfied with the final resolution supervised by the BBB? If so, that means the investor will address client issues to make sure the service was satisfactory.

You can use these research tips to vet any offers from investors and investment companies wanting to buy your house.

Expert Insight

What should home sellers look for when screening cash house buyers?

Get an independent valuation before you accept any number.

The prices offered by cash buyers for homes are often lower than the home is worth; therefore, it may take some time to find a buyer who will pay as much (if not more) than what you are looking for.

Obtain an appraisal, and an experienced agent provides a comparative market analysis prior to signing with a cash buyer.

— Natalia Bassova, Resort Real Estate Inc., CEO & Founder

Request proof of funds, not just a pre-approval letter. Look up the LLC’s state filings and check their Better Business Bureau history.

Legitimate operators will let you have an attorney review the contract and will not pressure you to sign quickly.

— Sara Garza, LIV Sotheby’s International Realty, Real Estate Broker

“We buy houses” companies are all about the margins. They closely evaluate the gap between what your house is worth in sellable condition, and what they can buy it from you for.

That gap is their #1 focus. Your desperation to sell is the main pain point they attack to get you to accept the lowest possible amount.

Don’t let them know if you are desperate to sell. If you stay calm and just talk to them as though you are gathering information, they are more likely not to lowball you as much as possible.

— Andrew Fortune, Great Colorado Homes, Owner/Realtor

How to Sell a House As Is by Listing It by Owner

If selling to an investor sounds like an option, but you want to explore more, let’s cover the other two selling options to help you make a final decision.

Let’s answer this question to introduce the next selling option, “How does selling a house ‘as is’ work in Colorado when you sell your house yourself?”

You’re on your own in this type of sale, so the first thing you have to do is to determine your approximate house value by address. Then, locate places to list your house to attract interested buyers.

Where Can You List a House For Sale by Owner?

The easiest way to list for sale by owner, known as an FSBO, is to put a sign on the property. That works best in a hot market in a desirable neighborhood with a lot of traffic.

One way to promote your FSBO property is listing it on for-sale-by-owner websites. These offer places to sell your house for free or for a nominal fee.

Pros of Selling Your House by Listing It by Owner

• You’ll skip paying listing agent commissions when you list yourself. Colorado listing Realtors earn 2-3% of the sales price, so that’s a significant savings.

• Going it alone means you get to make all the decisions and set your own timetable for the transaction.

• You put your home sale first. Real estate agents typically have a number of clients, and you’ll share their time with other sellers and buyers. That may delay your sale.

Cons of Selling Your House by Listing It by Owner

• A buyer typically has an agent to represent them, and that means you’ll end up paying their commission fees anyway. That is in addition to your other FSBO closing costs.

• Your buyers will typically need mortgages to purchase your house. This means waiting for loan approvals and loan underwriting.

• As an FSBO seller, you won’t have a professional to advise you and represent your best interests.

• Without professional advice and guidance, you may end up losing money and time during the transaction. The sale may even fall apart.

Expert Insight

What are the common pitfalls when selling a house by owner?

Owners typically allow unscreened individuals access to their property without ensuring whether an offer will result in the actual closing of the transaction.

It is always best to have a mortgage pre-approval letter from the potential buyer (or proof of available funds) before entering the majority of negotiations; thus, owners will avoid allowing prospective buyers to place their home under contract when they may not be able to complete the purchase.

— Natalia Bassova, Resort Real Estate Inc., CEO & Founder

The biggest FSBO pitfall in Colorado is underestimating contract liability.

The deadlines embedded in Colorado contracts — inspection, appraisal, loan commitment — carry real legal weight.

Missing or mishandling these dates can expose sellers to claims from buyers who lose money on failed rate locks.

— Sara Garza, LIV Sotheby’s International Realty, Real Estate Broker

Who Are Real Estate Agents?

Your agent is your fiduciary and is charged with protecting your best interests during the real estate transaction. They are also the one who markets the house and finds you buyers.

Real estate agents are licensed by the state and work under the supervision of a broker.

Some agents focus on listings, others work exclusively with buyers. Most agents work with both buyers and sellers. Many agents work as part of a team with other agents.

Pros of Selling Your House As Is with a Real Estate Agent

• Selling a house in Colorado with a Realtor typically brings a higher sales price. Realtors have access to a database that allows them to look at prior comparative sales and to price your house accordingly.

• Realtors take an oath to put your needs first. It’s their fiduciary duty. You’ll have a licensed, trained professional on your side of the transaction.

Cons of Selling Your House As Is with a Real Estate Agent

• The major downside of selling with a real estate agent is the average Realtor cost to sell a home. The commissions for both buyer’s and seller’s agents are typically paid by the seller. Commissions constitute the largest part of Colorado closing costs.

• An agent is generally not the fastest route to sell. Agents typically have multiple listings so you’re just one of their clients to be taken care of. Realtors also typically have buyers who need home mortgages. That adds days to the closing calendar.

How to Choose an Ethical Real Estate Agent?

Colorado has a wide variety of agents with experience in handling ‘as is’ listings. How do you find a quality one that’s also ethical? Some research will help you make a wise selection.

The goal is to find three agents to interview in person after vetting a number of agents who work in the geographic area of your house.

Start with checking to see if the agents are licensed. Use the Colorado Department of Regulatory Agencies “Search for a License” website feature to do this.

Check to see if the agents are members of the Colorado Association of Realtors (CAR). These agents use the term “Realtor” as a title.

Nearly 30,000 Colorado real estate agents are members of the CAR, a branch of the National Association of Realtors.

Realtors take an oath to follow the CAR’s Code of Ethics, and the CAR reprimands agents who fail to uphold the code. Reprimands include fines and license suspensions.

Consult the CAR to see if the prospective agents have been reprimanded by the association.

Consult the Colorado Better Business Bureau to search for any complaints filed against the prospective real estate agent.

The best way to vet an agent is to ask friends, family, and neighbors for agents they’ve worked with. Recommendations from this group means the Realtor provided quality service.

This article has covered the basics of selling an ‘as is’ property in the Centennial State.

The only thing left to do is to evaluate the advantages and disadvantages of each selling option to determine what works best for your situation.

Expert Insight

What should home sellers look for when screening real estate agents to hire?

Make sure they truly work in your specific town and not just “the area.”

For example, Summit County has several markets — Breckenridge, Frisco, Silverthorne, Dillon, and Keystone — each attracting different buyers and behaving differently on price and timing.

Ask the agent which towns/neighborhoods they have actually closed in recently.

An agent who lives and works in your micro-market every day will price and position your home far more accurately than someone who only drives up occasionally.

— Natalia Bassova, Resort Real Estate Inc., CEO & Founder

Ask one question most sellers never ask: what happens if the math says I shouldn’t sell? I run sell-vs-HELOC numbers side by side for every client before listing.

One recent Colorado seller was about to list. Selling would have cost $58K in total costs. A HELOC gave him $95K in accessible equity for $500.

He kept his home, paid off $55K in credit cards, and funded his daughter’s college. Saved $57,500.

— Bobby Friel, CO Home Equity, Licensed Mortgage Broker & Real Estate Agent

The best advice is to ask for referrals from their past clients. If their past clients rave about them, you likely have a good agent.

— Andrew Fortune, Great Colorado Homes, Owner/Realtor