Quick Comparison
| Factor | Request Repairs | Request Credit |
|---|---|---|
| Control over work quality | Low (seller chooses contractor) | High (you choose contractor) |
| Out-of-pocket cost after closing | $0 | Depends on credit amount |
| Hassle for seller | High | Low |
| Likelihood seller agrees | Medium | Higher |
| Timeline flexibility | Must be done before closing | Do it on your schedule |
| Warranty coverage | Seller's contractor warranty | Your contractor warranty |
| Best for | Financing requirements, safety issues | Quality control, non-urgent repairs |
When Repairs Make More Sense
Despite my bad experience, there are legitimate situations where asking the seller to complete repairs is the smarter move.
Your Lender Requires It
FHA and VA loans have specific property requirements. If the inspection reveals issues that violate these standards, the lender won't fund the loan until they're addressed. Peeling paint on pre-1978 homes (lead paint concern), missing handrails, broken windows, exposed wiring, active roof leaks... these often must be fixed before closing.
In these cases, you don't have a choice. The repairs happen before closing or the deal doesn't close. Request that the seller handle it.
You Have Zero Cash Reserves
If you're putting every dollar toward the down payment and closing costs, taking a credit doesn't help much. Sure, you might reduce closing costs, but you still need cash to pay the contractor after you move in.
A friend of mine, Derek, took a $4,000 credit on his first home because it seemed like more money. Then he sat in a house with a broken HVAC system for three months saving up enough to actually fix it. He should have asked for the repair.
The Issue Affects Safety or Livability
Some problems can't wait until after closing. No heat in January. Active gas leaks. Major water intrusion. If you can't safely or practically live in the home until the issue is resolved, the repair needs to happen before you take ownership.
The Seller Has a Trusted Contractor
Occasionally a seller has a longstanding relationship with a quality contractor. Maybe they've used the same roofer for years. Maybe their brother-in-law is a licensed electrician. If the seller can demonstrate access to quality work, repairs might turn out fine.
This is rare, but it happens. Get references. Check credentials. Verify permits.
When Credits Make More Sense
In most situations, I recommend credits over repairs. Here's why.
Quality Control
The seller has one goal: do the minimum necessary to close the deal. They're not living in this house afterward. They have no incentive to invest in quality materials or careful workmanship.
When you take a credit, you hire the contractor. You choose the materials. You're present during the work. You build a relationship with someone who might do your future repairs. The quality difference can be significant.
My sister-in-law Rachel took a $7,500 credit for a roof repair instead of having the seller fix it. She got three quotes, asked about materials, checked references. The roofer she hired used better shingles than the minimum spec and came back twice in the first year for free follow-up checks. Would the seller's contractor have done that? Doubtful.
Easier for Sellers to Say Yes
Sellers often reject repair requests because repairs are annoying. They have to get quotes, schedule contractors, let workers into a home they're trying to keep show-ready, and deal with any problems that come up.
Credits? Just adjust the closing numbers. Clean, simple, done.
According to a 2023 survey by the National Association of Realtors, sellers were 22% more likely to accept credit requests than equivalent-value repair requests. That difference can be the margin between getting what you want and getting nothing.
Timeline Flexibility
With a credit, you set the schedule. Need to wait until spring to fix the exterior? No problem. Want to live in the house for a few weeks before deciding on the exact approach? Go ahead. Moving into a house during active construction is chaotic. Credits let you do work on your terms.
Hidden Issues
Sometimes what looks like a $3,000 problem turns out to be an $8,000 problem once the contractor opens up the walls. If the seller agreed to a $3,000 repair, that's all they're on the hook for. If you took a $3,000 credit and the repair costs more, at least you can make choices about how to proceed.
On the flip side, sometimes problems are easier to fix than expected. A $5,000 credit for a plumbing issue that only costs $2,800 to fix? You just came out ahead.
The Math Behind Credits
Credits aren't always straightforward dollar-for-dollar trades. Let me explain how the numbers actually work.
How Credits Are Applied
There are two main ways to structure credits:
Credit toward closing costs: Reduces what you pay at the closing table. If you're paying $8,000 in closing costs and get a $3,000 credit, you only pay $5,000. This is the most common approach and works well if you're tight on cash for closing.
Price reduction: The sale price actually decreases. A $350,000 home becomes $347,000. This affects your loan amount, down payment percentage, and potentially your PMI situation. It also reduces what the seller nets after their mortgage payoff.
Your agent can explain which structure works better for your situation.
Credit Limits
Lenders cap seller credits at a percentage of the sale price, typically 3-6% depending on the loan type and your down payment. On a $300,000 home with conventional financing, the maximum seller credit might be $9,000-$18,000.
If your requested repairs exceed this limit, you'll need a different approach. Perhaps a price reduction instead of a credit, or splitting between credit and repair.
The Negotiation Discount
Here's a trick that often works: ask for slightly less in credit than the full repair cost. Sellers perceive credits as discounts off their sale price. A request for an $8,500 credit on a $10,000 repair signals that you're being reasonable and sharing some of the burden.
Will you end up paying $1,500 out of pocket? Yes. But you might also end up with a deal instead of a stalemate.
Hybrid Approach
You don't have to pick one or the other for every issue. Mix and match based on what makes sense.
On my last purchase, I asked the seller to repair the leaking shower valve (needed to be done before I moved in) and took a credit for the aging HVAC system (wanted to choose my own contractor). The seller agreed to both.
Think about each issue individually. Safety issues or livability problems? Repairs. Quality-dependent work or non-urgent items? Credits. Big-ticket items where you want control? Credits. Simple fixes where quality variation is minimal? Repairs.
Special Considerations
Your DIY Capabilities
If you're handy, credits can stretch further. That $1,500 credit for a deck repair might only cost you $600 in materials if you do the labor yourself.
Be honest about your skills, though. I've seen buyers take credits for electrical work they planned to DIY, then realize they were in over their heads. Know your limits.
Competitive Markets
In hot markets, you may not get much leverage either way. But if you have to pick, credits are often more palatable to sellers who are fielding multiple offers. Less hassle for them, more flexibility for you.
Insurance Considerations
Some issues affect your ability to insure the home. Certain roof types, outdated electrical panels (Federal Pacific, Zinsco), and other red flags can make insurance expensive or unavailable. These might need to be addressed before closing regardless of how you structure the negotiation.
The Bottom Line
If I had to generalize: take credits when you can, request repairs when you must.
Credits give you more control and are easier for sellers to accept. Repairs make sense when lenders require them, when you lack post-closing funds, or when the issue demands immediate attention.
Whatever you choose, get it in writing. Specify dollar amounts, scope of work, deadlines, and documentation requirements. Vague agreements lead to vague results.