Negotiating Repairs After a Home Inspection: Credits, Repairs or Price?

A home inspection report can run 50 pages and list dozens of items. That can feel overwhelming, but it’s normal. Every home has issues, even new ones. The goal of negotiation is to address what truly matters while keeping the deal together.

Sort the report into three groups

Category	Examples	Usually worth asking for?
Safety	Exposed wiring, missing smoke or CO detectors, gas leaks, failed GFCI outlets	Yes
Major systems and structure	Roof at end of life, failing HVAC, water intrusion, foundation cracks	Yes
Maintenance and cosmetic	Worn caulk, small drywall cracks, dated fixtures	Usually not

Three ways to resolve an issue

Option	Pros	Cons
Seller repairs	Problem is fixed before closing	You don’t control who does the work or its quality
Closing credit	You choose the contractor and materials	Capped by your loan program; credit pays closing costs, not the repair directly
Price reduction	Lowers your loan and future taxes slightly	Saves little cash at closing

A worked example

Your inspector finds a 20-year-old HVAC system that’s failing. A contractor quotes $9,000 to replace it. You’re buying at $650,000 with 10% down on a conventional loan. Asking for a $9,000 credit is reasonable, and conventional guidelines allow seller contributions of up to 6% of the price when you put 10% to 25% down, so the credit fits. Because the credit covers closing costs, you keep $9,000 more of your own cash for the new system.

Seller credit limits by loan type

Loan type	Typical maximum seller contribution
Conventional, under 10% down	3% of the price
Conventional, 10% to 25% down	6%
Conventional, over 25% down	9%
FHA	6%
VA	4% in concessions, plus normal closing costs

A credit also can’t be larger than your actual closing costs and prepaids. If the credit is more than you can use, the extra is usually lost, so your lender should confirm the number.

How to word a request

• Be specific. “Have a licensed HVAC contractor repair or replace the furnace so it operates as intended” is clearer than “fix the heat.”
• Ask for proof. Request receipts and the contractor’s license number for any completed work.
• Set a deadline. Repairs should be finished a few days before the final walk-through.
• Bundle small items. If you want a few minor fixes, a single modest credit is often easier for everyone.

Remember that the seller can agree, decline or counter. A clear, reasonable request backed by an estimate is the one most likely to be accepted quickly.

Tips for sellers

• Consider a pre-listing inspection so there are fewer surprises.
• Respond to the big items with documentation, like receipts or contractor quotes.
• A modest credit is often simpler than coordinating repairs during a move.

Common mistakes

• Sending a list of 40 small items, which can sour the seller on the deal.
• Asking for repairs without a contractor estimate.
• Missing the inspection contingency deadline in the contract.
• Assuming a home warranty will cover a pre-existing problem.

When to walk away

Sometimes the inspection uncovers something bigger than a repair request can solve, such as major structural movement, widespread water damage or a failing septic system. If the seller won’t address it and the cost would strain your budget, using your contingency to cancel may be the right decision. A home is a long-term commitment, and walking away from the wrong one protects your savings for the right one. I’ve seen buyers feel relief, not regret, a month later, once they found a better home that fit both their family and their budget.

Frequently asked questions

Can I walk away after the inspection?

If your contract includes an inspection contingency and you act within its deadline, usually yes. Learn more in Contingencies Explained.

What should the inspector check?

See The Home Inspection Guide for a full overview.

Should I ask for repairs on a new construction home?

Yes. Builders often fix punch-list items before closing. Read Buying New Construction.