How do I negotiate repairs after a buyer's inspection report comes in?
Answered by Allen Markel, REALTOR®, Texas Premier Realty ·
Short answer
An inspection report lists deficiencies but does not obligate either party to repair them. You and the buyer negotiate what gets fixed, who pays, or whether the buyer accepts the home as-is. Use the option period to get cost estimates from licensed contractors, then decide what to offer. The buyer must request repairs in writing before the option period ends.
What the inspection report means for repairs
The inspection report identifies items marked as Deficient (D) if they adversely affect a system or component or pose a hazard. However, the report does not obligate you or the buyer to make any repairs. The decision to fix a deficiency is left to the parties to negotiate in the contract.
The buyer pays for the inspection and owns the report. During the option period, the buyer can use the report to decide whether to ask for repairs, credits, or to walk away. You are not required to agree to any repair request, and the buyer is not required to ask for repairs even if deficiencies are listed.
How to handle a repair request
When the buyer asks for repairs, you have options: make the repairs yourself, offer a credit toward closing costs, offer a price reduction, or decline and let the buyer decide whether to proceed. There is no standard answer; it depends on the market, the cost of repairs, your timeline, and how motivated you are to close.
If you choose to make repairs, hire a licensed contractor and keep the receipt. The buyer may ask for proof that work was done properly. If you offer a credit or price reduction instead, the buyer accepts the home in its current condition and handles repairs after closing.
Get cost estimates from licensed contractors during the option period so you know what you are negotiating. The buyer should also obtain estimates if they want to know the true cost. Do not guess at repair costs; that leads to disputes.
Timing and next steps
The buyer must request repairs in writing before the option period expires. Once the option period closes, the buyer has accepted the home in its current condition and cannot ask for repairs based on the inspection.
If repair requests come in, respond in writing with your decision. If you and the buyer cannot agree, the buyer can terminate the contract during the option period and get the earnest money back. After the option period, the contract moves forward as written.
Talk to us to find the right option for your circumstances. We help you understand what repairs are reasonable, what they cost, and how to negotiate so the deal closes on your terms.
Common follow-up questions
Do I have to make repairs if the inspection report lists deficiencies?
No. The inspection report does not obligate you to make repairs. You and the buyer negotiate what happens next: you can repair, offer a credit, reduce the price, or decline. The choice is yours.
When does the buyer have to ask for repairs?
The buyer must request repairs in writing before the option period expires. Once the option period closes, the buyer has accepted the home as-is and cannot ask for repairs based on the inspection.
What if I do not want to make repairs?
You can decline. The buyer can then accept the home as-is, ask for a credit or price reduction, or terminate the contract during the option period and get the earnest money back.
Should I get a cost estimate for repairs before negotiating?
Yes. A licensed contractor's estimate tells you what repairs actually cost, so you can make an informed decision about whether to repair, offer a credit, or decline.
Sources
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