How to negotiate repairs after a home inspection
After an inspection, buyers usually ask the seller for one of three things: repairs before closing, a credit toward closing costs, or a lower price. Choose based on the size of the problem, who you want controlling the work and your loan’s limits on seller credits, and send your request before the contingency deadline in your contract.
Should you ask for repairs, a credit or a lower price?
| Remedy | How it works | Watch for |
|---|---|---|
| Seller repairs | The seller arranges the work before closing. | The seller chooses the contractor and quality. Ask for permits, invoices and a chance to check the work before closing. |
| Closing credit | The seller pays part of your closing costs. | Lenders cap seller credits, and a credit generally cannot exceed your closing costs. Fannie Mae’s cap for a home you will live in is 3%, 6% or 9% of the price, depending on your down payment. |
| Price reduction | The purchase price goes down. | You receive no cash for the repair and pay for it yourself after closing, but the loan amount and down payment shrink. |
| Escrow holdback | Money is held at closing until agreed work is finished. | Not every lender or loan type allows it; ask your lender early. |
What should you ask the seller to fix?
- Prioritize safety, active damage, material systems, and items affecting finance or insurance.
- Obtain specialist findings where the inspector recommends further evaluation.
- Request written estimates with consistent scope and assumptions.
- Distinguish repair, credit, price change, escrow, or cancellation options with your adviser.
- Record agreed work, permits, invoices, warranties, and any reinspection rights.
Questions before you negotiate
- Which remedy is allowed by the contract?
- Who controls repair scope and contractor selection?
- Will a credit cover the likely full cost and related work?
- How will completed repairs be documented and verified?
- What happens if a specialist finds additional damage?
Check your inspection contingency first
A contingency is contract language, not a generic checklist. Rights, deadlines, notice methods, and remedies vary, so review your signed agreement with a qualified local adviser.
Deadlines and notices
- Identify the inspection period start, end, and exact notice requirements.
- Confirm which inspections, tests, access, and documents are permitted.
- Schedule the general inspection early enough for specialist follow-up.
- Track delivery of reports, estimates, requests, responses, and amendments.
- Do not assume verbal discussions extend a deadline or preserve a right.
Questions for your agent or attorney
- Who must receive notice, in what form, and by what time?
- Can you request repairs, credits, price changes, or cancellation?
- What happens if the seller refuses access or utilities are off?
- Are specialty tests or destructive investigations allowed?
- Which adviser should interpret ambiguous contract language?
When to walk away after a home inspection
Consider walking away when a problem cannot be fully evaluated before your deadline, when the full cost is more than you can absorb, or when the seller will not agree to a fair remedy and your contract lets you cancel. Confirm your cancellation rights with your agent or attorney first.
Work through these before deciding
- Resolve immediate safety concerns and obtain the appropriate specialist opinion.
- Estimate full scope, including diagnosis, permits, temporary work, finishes, and concealed-damage risk.
- Check whether insurance, financing, occupancy, or appraisal requirements are affected.
- Assess whether contractors and materials are available within your timeline.
- Compare the remaining uncertainty with your financial reserve and risk tolerance.
Questions to ask
- Can the issue be fully evaluated before the decision deadline?
- Is the seller willing and able to address an agreed remedy?
- Would repair responsibility create unacceptable cash-flow or schedule risk?
- Are there multiple interacting systems rather than one isolated repair?
- What do your agent, attorney, lender, insurer, inspector, and specialist each advise within their role?
Sources and further reading
Authorship and review
Published by Castilho Enterprises. Educational content; no independent professional review is claimed.
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