Home Inspection Negotiation: What to Ask For, What to Let Go, and How Repairs and Credits Work

The Inspection Report Is Long. That's Normal.

Almost every inspection report looks scary at first. Even well-kept homes come back with dozens of notes, from a loose outlet cover to a roof near the end of its life. That's the inspector doing their job.

The skill is in sorting the list. Buyers need to know what really matters, and sellers need to know how to respond without giving away the farm or losing a good buyer. Here's how I help both sides think it through.

Deal-Breakers vs. Nitpicks

Usually worth negotiating: safety issues, like electrical hazards, gas leaks or missing smoke protection; structural concerns, like foundation movement or significant water intrusion; major systems near failure, like a roof, HVAC system or water heater; active leaks, moisture or wood-destroying insect damage; and anything the lender or appraiser is likely to require.

Usually not worth fighting over: cosmetic wear, small caulking and paint touch-ups, minor maintenance items, and things that were obvious when you toured. Asking for everything can sour the relationship and put the deal at risk over small items.

In Hampton Roads, I pay extra attention to moisture, crawl spaces, drainage and grading, given our climate and water. On older homes, my guide to what a home inspection should cover on an older home goes deeper.

Repair vs. Credit vs. Price Reduction

There are three main ways to resolve inspection items, and each works differently.

How Each Option Interacts With the Buyer's Loan

Credits usually can't exceed the buyer's actual closing costs and prepaid items, and each loan type has its own limits on seller contributions. If a credit is bigger than what the lender allows, the extra may not be usable. My guide to seller concessions and lender credits explains the general idea.

Some repairs aren't optional. VA and FHA appraisals can require certain repairs related to safety, soundness and security before the loan closes, no matter what the buyer and seller agree to. A conventional appraisal can flag issues too. When a lender requires a repair, it generally has to be done before closing.

A price reduction changes the loan amount, and in some cases the appraisal and the numbers have to line up again. Talk with your lender before you agree to a structure.

For Buyers: How to Make a Strong Repair Request

Focus on the items that matter. A short, prioritized list backed by the inspector's notes or a contractor's estimate gets taken more seriously than a long list of everything.

Think about which fix you'd rather control. For a big item like a roof, many buyers prefer a credit or price adjustment so they choose the contractor. And watch your deadlines. Inspection contingencies have time limits, and missing them can cost you leverage.

For Sellers: How to Respond

Don't take it personally. A repair request is a business negotiation, not a judgment of how you cared for your home.

Look at the buyer's alternatives. If you refuse a reasonable request on a real issue, the next buyer's inspector will likely find the same thing, and now you'll have to disclose what you know. You have choices: agree, counter with a credit instead of a repair, offer to fix some items but not others, or decline.

A pre-listing inspection can reduce surprises. I talk about that in my guide to preparing your home to sell, and if you're deciding whether to fix things at all, see selling as-is vs. making repairs.

Let's Work Through Your Report Together

I help buyers prioritize the list and sellers decide how to respond, so the negotiation stays focused on what matters. If you've got an inspection report in hand, or one coming soon, reach out to me and we'll go through it together.

This article is general information, not legal, tax or financial advice. Contract terms, loan rules and costs vary, so confirm your specifics with your lender, closing attorney, title company or tax professional.