Understanding What Negotiation Actually Means
Let's get something straight: negotiating repairs isn't about being adversarial. The seller isn't your enemy. They're someone who owns a house with problems (all houses have problems) and you're trying to reach an agreement about who handles those problems.
According to the National Association of Realtors, about 87% of home sales involve some form of negotiation after the inspection. This is normal. Expected, even. Sellers often price in some wiggle room knowing the inspection will reveal issues.
The question isn't whether to negotiate. It's how to negotiate effectively.
The Three Things You Can Ask For
When your inspection turns up problems, you have three basic options to request from the seller:
Option 1: Seller makes repairs before closing. The seller hires contractors, pays for the work, and you verify it's done correctly before you close. This sounds ideal but comes with complications I'll explain shortly.
Option 2: Seller provides a credit at closing. Instead of making repairs, the seller gives you money off the purchase price (or credits toward closing costs) so you can handle repairs yourself after you own the home.
Option 3: Seller reduces the purchase price. Similar to a credit, but structured differently for financing purposes. The home sells for less, which can affect your down payment percentage and loan terms.
Each approach has pros and cons depending on your situation, the severity of the issues, and how motivated the seller is to close the deal.
What to Prioritize in Your Request
Here's where most buyers mess up: they ask for too much.
My buddy Steve bought a house last year. His inspection report was 47 pages long. He highlighted everything, sent the seller a list of 23 repair requests, and the seller counter-offered with exactly nothing. Wouldn't budge. Steve ended up walking away and losing the house to another buyer who was less demanding.
Don't be Steve.
Inspection reports are thorough by design. An inspector's job is to document everything, from the missing GFCI outlet in the bathroom to the major foundation crack. That doesn't mean every item warrants a repair request.
Tier 1: Safety Issues (Always Ask)
These are non-negotiable. If the inspection reveals safety hazards, you should absolutely request they be addressed. Examples include:
- Electrical problems: double-tapped breakers, ungrounded outlets, Federal Pacific or Zinsco panels
- Gas leaks or carbon monoxide risks
- Mold or environmental hazards
- Structural instability affecting the home's safety
- Missing handrails on stairs, unsafe decks
- Water heater safety issues
A seller who refuses to address legitimate safety concerns is sending you a message. Pay attention to it.
Tier 2: Major Systems and Structure (Usually Ask)
These are big-ticket items that affect whether the house functions properly:
- Roof problems (active leaks, significant wear, limited remaining life)
- HVAC issues (systems at end of life, not heating/cooling properly)
- Plumbing problems (sewer line issues, significant leaks, old galvanized pipes)
- Electrical panel upgrades needed
- Foundation or structural concerns
- Water intrusion or drainage issues
These items typically cost thousands to address. A roof replacement might run $8,000 to $25,000 depending on the size and materials. An HVAC system could be $7,000 to $15,000. These numbers add up fast.
Tier 3: Moderate Repairs (Pick Your Battles)
This middle ground is where judgment calls happen:
- Older windows that still function but aren't efficient
- Appliances near end of life
- Minor water damage that's been repaired
- Cosmetic issues that hint at larger problems
- Deferred maintenance items
I generally recommend including 1-2 items from this tier to give yourself negotiating room. If you ask only for the absolute essentials, you have nowhere to give when the seller pushes back.
Tier 4: Cosmetic and Minor (Don't Bother)
Leave these off your repair request entirely:
- Paint touch-ups
- Worn carpet
- Outdated fixtures
- Missing outlet covers
- Caulking needs
- Cosmetic cracks in drywall
Asking for these items makes you look unreasonable and can poison the entire negotiation. You saw these things when you made your offer. The inspection didn't reveal them. Let them go.
How to Structure Your Repair Request
Once you've identified what to ask for, how you ask matters almost as much as what you ask for.
The repair addendum (or amendment, depending on your state) should be specific enough that everyone knows what's being requested, but not so prescriptive that it creates problems later.
Be Specific About the Problem
Bad request: "Fix the electrical issues."
Better request: "Have a licensed electrician address the double-tapped breakers in the main panel and install GFCI protection in the kitchen and bathrooms as required by current code."
Reference the inspection report page numbers. Include photos if your agent can attach them. Make it crystal clear what you're asking for.
Use Professional Standards
Instead of demanding specific solutions, reference professional standards:
"Seller to have a licensed roofer repair the flashing around the chimney and address active leaks, providing a paid receipt for the work."
"Seller to have a licensed plumber evaluate and repair the sewer line issue identified in the inspection, providing documentation that the system is functioning properly."
This gives the seller flexibility in how they solve the problem while ensuring it gets solved correctly.
Request Documentation
For any repairs the seller agrees to make, require:
- Paid receipts from licensed contractors
- Permits and inspections where applicable
- Warranty information for parts and labor
- Before and after photos
My neighbor Janet learned this the hard way. The seller agreed to "repair the deck" and did it himself over a weekend. The "repair" involved some questionable lumber and zero permits. Three years later, the deck needed to be torn down and rebuilt from scratch. Get documentation.
Credits vs. Repairs: Which Should You Request?
This is one of the most common questions I get, and the answer depends on your situation.
When to Request Repairs
Seller-completed repairs make sense when:
- The issue affects whether you can get financing (lenders won't fund homes with certain problems)
- The repair is straightforward and hard to mess up
- You don't have cash reserves to handle it after closing
- The seller has a trusted contractor relationship
- The problem needs to be fixed before you can safely occupy the home
The biggest advantage: you don't have to deal with it. Someone else coordinates the contractors, pays the bills, and handles any complications.
When to Request Credits
Credits often make more sense because:
- You control the quality of work and choice of contractor
- The seller is motivated by price, not craftsmanship
- Credits are easier for sellers to agree to (no coordination required)
- You can use your own timeline after closing
- The credit can be applied to closing costs if you're short on cash
When I bought my house, I requested a $12,000 credit instead of having the seller replace the roof. Smart move. I got three quotes, found a contractor I trusted, and ended up with a better roof than the seller would have installed. Plus, the seller had no incentive to do quality work on a house he was leaving.
The Math of Credits
Here's something important: sellers often agree to smaller credits more easily than they agree to repairs because credits feel like a discount rather than an admission of problems.
Let's say the roof needs $10,000 in work. If you ask the seller to fix it, they might refuse entirely, worried about the hassle and potential liability. But if you ask for a $9,000 credit toward closing costs? They might take that deal in a heartbeat because it's cleaner for them.
You give up $1,000 on paper but gain control over the work. Sometimes that trade-off is worth it.
Getting Contractor Quotes Before Negotiating
This is my secret weapon, and I'm surprised more buyers don't use it.
Before you submit your repair request, get actual quotes from licensed contractors for the major items. Yes, this takes time. Yes, it's worth it.
Why Quotes Give You Leverage
When you can say "the roof repair will cost $8,400 according to Smith Roofing" instead of "the roof needs work," your request carries more weight. You're not guessing. You have a number.
Sellers can argue with your opinion. They can't argue with a written estimate from a licensed contractor.
My sister Lisa was buying a townhouse with knob-and-tube wiring in part of the house. The seller dismissed it as "just old wiring that still works." Lisa got a quote from an electrician: $6,200 to rewire those sections to code. Suddenly the seller took it seriously. They agreed to a $5,500 credit.
How to Get Quotes Quickly
You usually have 7-10 days to complete your inspection contingency. That's tight. Here's how to move fast:
- Call contractors the same day you get your inspection report
- Many will give phone estimates for common issues if you send photos
- Explain you're buying a house and need quotes for negotiation
- Focus on the 2-3 biggest items, not every small thing
Some contractors charge for estimates. Pay it. A $75 estimate that justifies a $5,000 credit is money well spent.
Understanding the Seller's Perspective
Effective negotiation requires understanding what the other side wants. Put yourself in the seller's shoes.
They've already mentally moved on. They're thinking about their next home, packing boxes, planning their move. The last thing they want is complications.
What Motivates Sellers
Most sellers want:
- A clean, quick closing
- Minimal hassle and coordination
- To avoid re-listing the home if the deal falls through
- To feel like they got a fair deal
Frame your requests with this in mind. "We'd like a $6,000 credit so we can handle this after closing without delaying your timeline" sounds better than "We demand you fix this broken house."
Reading Their Motivation Level
How motivated is the seller? Signs they're eager to close:
- They've already purchased another home
- The house has been on the market a while
- They've had deals fall through before
- They're dealing with a job relocation or life change
- Estate sales or divorce situations
A highly motivated seller will negotiate. An unmotivated seller (who priced below market and got multiple offers) has less reason to budge.
The Back and Forth Process
Your first repair request probably won't be accepted as-is. That's normal. Expect some back and forth.
What Sellers Typically Counter With
Common seller responses include:
- Agreeing to some items but not others
- Offering a smaller credit than requested
- Agreeing to repairs but using their own contractor
- Rejecting the request entirely and calling your bluff
- Offering a home warranty instead of repairs
The home warranty thing is a pet peeve of mine. A $500 home warranty doesn't fix a $12,000 roof. Don't let sellers use warranties as a substitute for addressing real problems.
Deciding What to Accept
When the seller counters, you need to decide what matters most. Ask yourself:
- Will you walk away if you don't get this?
- Can you afford to handle it yourself after closing?
- Is this issue truly a dealbreaker or just disappointing?
- How does this house compare to others you might find?
My friend Marcus was buying a condo and got into a battle over $2,000 in repairs. He held firm, the seller held firm, and the deal fell apart. Marcus spent four more months searching and ultimately bought a place he liked less for more money. Sometimes winning the battle means losing the war.
The Final Walk-Through
If the seller agrees to make repairs, schedule a walk-through to verify the work was completed. Don't just take their word for it. Bring your original inspection report and check each item. If possible, have your inspector do a quick reinspection of the repaired items.
I've seen sellers agree to repairs and then "forget" to actually do them. Or do them halfway. Or have their uncle Bob do a terrible job. Verify everything before you sign off on closing.
When to Walk Away
Sometimes the best negotiation outcome is realizing you shouldn't buy this house.
Walking away is scary. You've invested time, money (inspection fees, appraisal, etc.), and emotional energy. But buying a house with serious problems that the seller won't address is scarier.
Red Flags That Should Make You Consider Walking
- Major structural issues the seller won't address or acknowledge
- Environmental hazards (mold, radon, asbestos) with no remediation plan
- The inspection reveals the house was poorly flipped with cosmetic cover-ups
- Seller becomes hostile or deceptive during negotiations
- Problems are so extensive that repairs would exceed your budget
- The numbers just don't work even with credits
The Cost of Walking Away
You'll lose your inspection fee (typically $400-600). You might lose earnest money depending on your contract terms and when you cancel. You'll definitely lose time.
But consider what you could lose by staying: tens of thousands in unexpected repairs, the stress of dealing with major problems, the feeling of being trapped in a house you regret buying.
A colleague of mine, Patricia, walked away from a house after the inspection revealed significant foundation issues. The seller wouldn't negotiate. She was devastated. Three months later, she found a better house in a nicer neighborhood for the same price. Sometimes the deal that falls through is a blessing.
Special Situations
Not all negotiations follow the standard playbook. Here are some scenarios that require adjusted strategies.
As-Is Sales
When a property is listed "as-is," the seller is signaling they won't make repairs. This is common with estate sales, foreclosures, and fixer-uppers.
But "as-is" doesn't mean you can't negotiate. It means the seller won't repair things, but they might reduce the price if the inspection reveals issues worse than expected. You still have the inspection contingency to walk away if needed.
My approach with as-is properties: focus entirely on price reduction or credits rather than repair requests. Frame it as "given the condition, the price needs to reflect the reality."
Multiple Offer Situations
In a competitive market where the seller had multiple offers, your negotiating power is limited. They can easily move to the backup offer if you're too demanding.
In these situations:
- Limit requests to true safety issues and major defects
- Consider waiving minor items entirely
- Be prepared for the seller to say no
- Decide in advance what you'll accept
I bought in 2017 during a hot market. There were three other offers on my house. I asked for exactly two things: the electrical panel and the water heater pressure relief valve (a safety issue). The seller agreed. I could have asked for more, but I would have risked losing the house.
Older Homes
Inspections on older homes (pre-1970) typically reveal more issues because systems age and codes change. Sellers of older homes usually expect this.
Focus your requests on:
- Active problems (leaks, safety hazards)
- Items that could cause future damage if not addressed
- Upgrades required for financing or insurance
Leave alone:
- Vintage features (original windows, old but functional plumbing)
- Items that don't meet current code but were acceptable when built
- Cosmetic age-related wear
Working With Your Real Estate Agent
Your agent is your advocate in this process, but they also have incentives that may not perfectly align with yours. Understand this dynamic.
How Agents Can Help
A good buyer's agent will:
- Help you prioritize inspection findings
- Draft the repair request document
- Present your request professionally to the listing agent
- Navigate the back-and-forth negotiations
- Advise when to push and when to accept
- Connect you with contractors for quotes
Tom, my agent, was invaluable during my negotiation. He knew the listing agent, understood what the seller was likely to accept, and helped me frame requests in a way that didn't antagonize anyone.
Remember Who Works for You
Your agent earns a commission only when the deal closes. This creates subtle pressure to close deals rather than walk away from problematic ones.
This doesn't mean agents are dishonest. But be aware that when your agent says "you should probably accept their counter-offer," they may be right for the wrong reasons. Trust your instincts alongside their advice.
Make your own decision about what you're willing to accept. Your agent's job is to facilitate, not decide.
After the Negotiation
Once you've reached an agreement, the work isn't over.
Get Everything in Writing
The repair agreement should be a written addendum to your purchase contract. It should specify:
- Exactly what will be repaired or credited
- Who will perform the repairs (if applicable)
- Deadline for completion
- What documentation you'll receive
- What happens if repairs aren't completed
Verbal agreements mean nothing in real estate. If it's not in writing, it doesn't exist.
Scheduling Your Reinspection
If the seller agreed to make repairs, schedule a reinspection before closing. Most inspectors offer reinspection services for $100-200 to verify specific items were addressed.
Don't skip this step. I've seen deals where sellers "fixed" things in ways that created new problems. A quick professional check is cheap insurance.
Managing Credits at Closing
If you're receiving credits, work with your lender and title company to ensure they're properly applied. Credits typically show up on your closing disclosure as a reduction in what you owe.
Review the final numbers carefully. Mistakes happen. Make sure the credit amount matches what was agreed to.
What I Wish I'd Known Seven Years Ago
Looking back on my first negotiation, I got lucky more than I got skilled. Here's what I know now that I didn't know then:
The inspection report isn't a repair list. It's a snapshot of the home's condition. Not everything needs to be "fixed."
Sellers expect negotiation. Most have priced in some flexibility. The conversation isn't adversarial, it's expected.
Focus matters more than volume. Three strong, documented requests beat twenty small complaints every time.
Credits give you control. Unless financing requires repairs, credits often work better than seller-completed work.
Walking away is power. The willingness to walk away is your strongest negotiating position. If you can't walk away, you can't truly negotiate.
That colonial I bought seven years ago? The electrical panel has been upgraded. The basement has been dry since we addressed the drainage. And the roof replacement I paid for with the credit just celebrated its fifth anniversary with zero issues. The negotiation felt stressful at the time. Now it's just the story of how we got a fair deal on a great house.