What You'll Need
- Your complete home inspection report
- A highlighter (or digital annotation tool)
- Your purchase agreement showing contingency deadlines
- Contact information for 2-3 contractors in key trades (optional but helpful)
- An hour or two of uninterrupted time
Step 1: Read the Full Report First
Before highlighting anything, read the entire report from start to finish. Don't stop to react. Don't start making lists. Just read.
Why? Context matters. That "failed" grading around the foundation sounds scary in isolation. But if the inspector also noted no water intrusion in the basement and a properly functioning sump pump, it's less urgent.
Reading the whole report first helps you understand how issues relate to each other and what the overall condition of the home looks like. A home with one major issue is different from a home with fifteen minor issues even if they cost the same to address.
Step 2: Sort Issues into Three Categories
Go back through the report with your highlighter. Sort every flagged item into one of three categories.
Category A: Safety and Major Systems
These get your primary attention. Include:
- Electrical hazards (double-tapped breakers, ungrounded outlets, dangerous panels)
- Gas leaks or carbon monoxide risks
- Structural defects (foundation cracks, beam issues, significant settling)
- Roof problems (active leaks, failed flashing, minimal remaining life)
- Water heater safety issues (improper venting, missing TPR valve)
- HVAC problems (non-functioning, unsafe, at end of life)
- Major plumbing issues (sewer line problems, active leaks)
- Evidence of mold or environmental hazards
- Fire safety issues (missing railings, egress problems)
These issues can cause injury, make the home uninhabitable, or lead to catastrophic damage. They deserve priority.
Category B: Significant But Non-Urgent
These are real problems but not emergencies:
- Windows that need sealing or show early signs of failure
- Appliances nearing end of life but still functional
- Minor roof issues that aren't actively leaking
- Drainage issues that could cause future problems
- Outdated but safe electrical or plumbing
- Deferred maintenance items
You might include 1-2 of these in your request to give yourself negotiating room, but they shouldn't be your focus.
Category C: Cosmetic and Minor
Leave these off your request:
- Paint issues
- Worn flooring
- Dated fixtures
- Missing outlet covers or switch plates
- Caulking needs
- Minor cracks in drywall
- Normal wear and tear
- Items you noticed before making your offer
Asking for these items makes you look unreasonable and can undermine your credibility on the items that actually matter.
Step 3: Research Cost and Complexity
For each Category A item, do a quick reality check on what addressing it actually involves.
Some questions to answer:
- Is this something that requires a licensed professional or permits?
- What's the typical cost range for this repair in your area?
- How long does this repair typically take?
- Are there potential hidden complications?
You can get rough cost estimates from sites like HomeAdvisor or Angi. Better yet, call a contractor and ask. Most will give you a ballpark over the phone if you explain you're buying a house and considering your options.
This research helps you prioritize. A $500 fix and a $5,000 fix both count as "one item" on your repair request, but they have very different impacts on your budget.
Step 4: Consider Your Financing Situation
Some issues must be addressed before closing, depending on your loan type.
FHA loans require the home to meet HUD minimum property standards. Issues that commonly trigger required repairs include: peeling paint on pre-1978 homes, missing handrails, broken windows, roof problems, exposed wiring, and foundation issues.
VA loans have similar requirements through their Minimum Property Requirements (MPRs). These include functional plumbing, heating, and electrical systems plus structural soundness and safe access.
Conventional loans have more flexibility, but lenders can still require repairs for major safety or habitability issues, especially if the appraisal flags them.
If any of your Category A items are likely financing requirements, move them to the top of your list. These aren't optional requests. The deal can't close without them.
Step 5: Narrow to Your Top 3-5 Items
Here's the hard part: you probably can't ask for everything.
Review your Category A items. Which are the most expensive? Which pose the most immediate risk? Which are most likely to be required by your lender?
Rank them. Then draw a line at 3-5 items.
Sellers who receive a list of 15 repair demands often reject everything. Sellers who receive a focused list of 3-5 significant items with documentation often negotiate in good faith.
Prioritization Framework
If you're struggling to narrow down, ask these questions:
- Could this issue hurt someone? (Highest priority)
- Could this issue cause significant damage to the home if not addressed soon?
- Is this required by my lender to close?
- Would this cost more than $1,000 to address?
- Is this something I couldn't realistically do myself?
The more "yes" answers, the higher the priority.
Step 6: Get Professional Quotes if Time Permits
For your top items, getting actual contractor quotes strengthens your request significantly.
Instead of "the roof needs work," you can say "Smith Roofing provided a quote of $8,400 to address the flashing failures and replace the damaged section identified in the inspection."
Sellers can argue with your opinion. They can't argue with a written estimate from a licensed professional.
You typically have 7-10 days during your inspection contingency. That's tight but usually enough to get phone estimates on 2-3 major items if you start calling immediately.
Step 7: Draft Your Request
Your repair request (sometimes called a repair addendum or amendment) should be specific but not overly prescriptive.
Include for Each Item
- Reference to the inspection report (page number, section)
- Clear description of the problem
- What you're requesting (repair by licensed contractor, credit, price reduction)
- Documentation requirements (receipts, permits, photos)
Example Language
Good: "Seller to have a licensed electrician address the double-tapped breakers identified on page 23 of the inspection report and provide a paid receipt upon completion."
Bad: "Fix all electrical issues."
The good version is specific, references the report, requires a professional, and specifies documentation. The bad version is vague and unenforceable.
Step 8: Submit and Prepare for Negotiation
Your agent will submit the repair request to the listing agent. Expect a response within a few days.
The seller might accept everything. They might counter with partial acceptance. They might reject everything and call your bluff.
Before you submit, know your walk-away point. Which items are absolute deal-breakers? Which are you willing to compromise on? Having this clarity in advance makes the negotiation less stressful.
Common Mistakes to Avoid
- Asking for too much: Long repair lists get rejected. Focus on what matters.
- Including cosmetic items: This makes you look unreasonable and hurts your credibility on legitimate requests.
- Being too vague: "Fix the roof" doesn't tell anyone what you actually want. Be specific.
- Missing deadlines: Know your contingency timeline. Missing it can cost you your leverage or your earnest money.
- Not getting it in writing: Verbal agreements mean nothing in real estate. Everything must be documented.
What to Expect
Most inspection negotiations take 2-5 days of back and forth. You'll submit your request, the seller will respond, you might counter, and eventually you reach agreement or decide to walk.
About 85-90% of deals survive the inspection negotiation, according to industry data. The majority reach some form of compromise. But that means 10-15% do fall apart. Be prepared for either outcome.
If the seller agrees to repairs, schedule a reinspection to verify the work was completed properly. If they provide credits, verify the amounts are correct on your closing disclosure.