Home repairs are inevitable as a homeowner, but when you’re buying a home, it’s important to know what kind of condition it’s in—and whether any issues could end up costing more than you expected.
As a buyer, you have a few options for negotiating after the home inspection: asking the seller to make repairs, reducing the purchase price of the home, including repair credits in the closing costs, or, as a last resort, opting into an escrow repair agreement.
Most buyers and sellers are willing to negotiate to help the sale go through. But navigating negotiations during the already emotional process of a home sale can be tricky—that’s where this Redfin article can help, whether you’re buying a home in Boise, ID or Albany, NY.
How to prepare for a home inspection negotiation
When a purchase agreement includes an inspection contingency, it gives buyers the right to negotiate after the home inspection report comes in. Sometimes, the report will turn up surprises for both the buyer and the seller.
The inspection report will probably be full of notes, photos, and maybe even some things you weren’t expecting. But overall, this report will help you know what, if anything, to ask from the seller.
Look for big, expensive problems
Go through the report and keep an eye out for big problems. These are things that could affect the home’s safety or structure, like:
Roof leaks or damage
Foundation cracks
Electrical or plumbing issues
A broken or worn out HVAC system
Mold or pest infestations
These are often referred to as “material facts”—and if the seller refuses to address them, they’re legally required to disclose them to future buyers.
Separate the big stuff from the small stuff
Not every issue is worth negotiating over. Cosmetics like chipped paint or creaky floors are usually easy to fix once you move in. Repairs are part of owning a home, so try to focus your energy (and negotiation efforts) on what really matters.
Talk to your agent about what’s worth negotiating
Once you’ve highlighted any major problems, talk to your real estate agent. They’ve seen plenty of inspection reports before and can help you decide what’s worth negotiating, how much repairs cost, and how to put together a strong request to send to the seller.
How to negotiate after the home inspection in 6 steps
Once you’ve read through your home inspection report and spoken with your agent, it’s time to take action. Here’s how to handle things, step by step, so you can move forward with confidence.
1. Categorize repairs by urgency
Start by organizing the issues found during the inspection. Some problems might be small and easy to fix, while others could be much larger and cost thousands of dollars.
Critical repairs are big ones—like a leaking roof, cracked foundation, or major plumbing issues. These could affect the safety and structural soundness of the home.
Moderate repairs are still important but not deal breakers. Old windows, leaky faucets, or run down appliances matter, but aren’t mandatory.
Cosmetic repairs are surface-level things like chipped paint or loose tiles. These are usually easy and inexpensive to fix later, and can be updated to buyer preference.
2. Get repair estimates
Now that you know what needs fixing, find out what it might cost. Get in touch with licensed contractors in the area to get estimates.
By doing your research and getting multiple estimates, it helps you build a strong case, makes your requests clear, and backs them up with hard numbers. If you’re working with a lender and plan to ask for a seller’s credit, the lender will usually require detailed estimates or invoices to approve the request.
3. Choose a repair strategy
Once you understand what repairs are needed and how much they’ll cost, it’s time to explore how you would like the seller to respond. There are a few key options, each with their own advantages and disadvantages.
Option 1: Ask the seller to make repairs
The first option is asking the seller to fix any problems before closing.
This often is not the preferred route for either seller or buyer. Sellers don’t have as much investment in making sure the repairs are completed properly, and buyers will be waiting on the seller to get them done. Sometimes sellers are not physically near the home or can’t pay cash for the repairs to be made.
For the best success with seller repairs:
Make sure the repair terms are clearly written into the contract
Specify who will do the work and what materials will be used
Always do a final walkthrough to confirm the repairs were completed as agreed
Option 2: Request a seller repair credit at closing
Many sellers prefer giving a credit—it’s faster and easier for them. And for the buyer, it means you can choose who does the work and when.
The credit will appear on the closing statement as a lump sum. But if you’re financing the home, heads up: the lender must approve the credit, so keep close track of estimates and invoices.
Example: If the roof repairs are estimated at$3,000, request a $3,000 closing credit.
Option 3: Negotiate a price reduction
With this option, the seller lowers the home’s purchase price to reflect the cost of repairs. This is a great option for buyers who have cash saved for repairs, but want to reduce their initial investment.
This option is easy to handle on paper, and saves the buyer money up front. However, you’ll still be responsible for fixing the problems after closing (and your lender may require any safety or structural issues to be addressed before financing the home).
Option 4: Use an escrow repair agreement
If a repair can’t be completed before closing, an escrow holdback might be the final option. This negotiation strategy should only be used as a last resort, as it’s at the greatest risk for disputes down the line.
How this works:
Some of the seller’s proceeds are held in a separate account, and the money is used to pay for the repairs after closing.
Both sides sign an agreement that outlines what work will be done, who will do it, and how and when the money will be released.
If the work is delayed, incomplete, or disputed, it can lead to legal action and fees. When possible, it’s always best to get any repairs done before closing.
4. Submit a written request
Once you’ve decided on your strategy, keep your requests simple and focused. Pick your top 2–3 most important issues, include your cost estimates, and make your request in writing.
Be polite and professional, explaining what you found and what you’d like in return. Remember, this is someone’s home. Make sure everything is done in writing and reviewed by your agent.
Here’s a quick example:
“Based on the inspection findings, we’re requesting a $10,000 price reduction to address the roof and electrical issues. We’d like to move forward at a revised purchase price of $485,000.”
5. Respond to seller pushback
Sometimes the seller might agree to all your requests, but that’s not usually the case. Likely, there’s going to be some back and forth before an agreement is reached.
If the seller comes back to negotiate, they’ll likely come back with one of the three scenarios:
Offer a smaller credit to help with, but not completely cover, the cost of repairs
Agree to fix some things, but not everything
They offer a price drop instead of a credit
Be ready to meet in the middle. This is where it’s important to have an experienced agent that can help guide the conversation. The goal is to help the home sale go through in a way that feels fair to both sides.
6. Walk away if needed
The inspection contingency gives buyers a way out if major problems are found and an agreement can’t be reached. But there’s a deadline—usually 5 to 10 days after the inspection.
If the seller won’t negotiate on big ticket items (like a failing foundation or dangerous wiring), and you’re not comfortable taking on the cost, you can back out without losing your earnest money—as long as it’s still within that timeline.
This final step is your safety net. Don’t be afraid to use it if the home doesn’t feel like the right fit anymore.
What if the seller refuses to make repairs?
Sometimes, despite the inspection report and fair requests, the seller still says no. They may refuse to fix anything, offer a credit, or adjust the price. It can be frustrating, but it doesn’t always mean the house is lost. When the seller refuses to negotiate, there are a few things at play:
The home is being sold as-is
Most residential standard purchase agreements state homes are for sale “as-is”, but almost all sellers expect some negotiations after the home inspection. The exception is when sellers list their home exclusively as-is to communicate they have no intention of making any repairs. This is more common in seller markets, investor sales, or estate situations.
But whatever the reason, the seller might decline your requests and want to stick to the original terms outlined in the contract. You’ll have to decide whether to accept the home as-is or walk away.
Material facts must be disclosed
Even if the seller refuses to negotiate, they still have a legal responsibility once they’re aware of problems with the home. If the inspection uncovers something that would affect the livability of the home, like a cracked foundation or major water damage, the seller must disclose it to future buyers if you back out.
In some cases, this pressure encourages sellers to reconsider, especially if they realize the issue could keep coming up with future buyers.
Did the seller know about issues beforehand?
If a big issue shows up during the inspection, it’s worth wondering whether the seller already knew and didn’t disclose it. Sometimes a problem might have been around for awhile. Sellers don’t have to share everything they know, but they are required to report known material facts.
Your agent may suggest gently raising this question in negotiations, especially if the problem is obvious.
Know when it’s time to walk away
Sometimes the best tactic is to move on. If the home needs expensive fixes or a lot of work and the seller refuses to meet you halfway, it may not be worth the money or stress.
Talk it over with your agent. There are always other homes, and you deserve one that’s safe, solid, and a good investment.
Tips for smoother negotiation
Negotiating after a home inspection doesn’t have to feel stressful. When both sides focus on the issues at hand and are flexible, the process can be easier for everyone. Follow these tips, and everyone has a better chance of walking away from negotiations satisfied with the outcome.
Stay focused on the bigger problems
Don’t overwhelm the seller with a long list of small repairs. Stick to what matters—safety concerns, structural issues, or anything that could cost thousands to fix. That’s where you’ll have the most leverage.
Let your agent do the talking
Your real estate agent knows how to phrase things in a way that keeps the conversation professional and productive. Let them lead the back-and-forth so emotions don’t get in the way.
Back up your requests with estimates
Want a credit or price drop? Include contractor quotes in your negotiations. The more data you provide, the stronger your case, and the more likely the seller will take your request seriously.
Be willing to compromise
Most negotiations involve a little give-and-take. The seller may not agree to everything, and that’s okay. Focus on your top priorities and be flexible with the rest.
Always do a final walkthrough
If the seller agrees to make repairs, always schedule a final walkthrough before closing. Bring a copy of the repair agreement and check that everything was done properly.
Don’t miss your contingency deadline
Keep an eye on the calendar. If you decide you’ll no longer be buying the house, you need to do so before the inspection contingency expires to get your earnest money back.
Keep your cool
It’s easy to get frustrated when expensive problems pop up, but try not to take it personally. Sellers are often just as stressed as buyers, and staying calm and empathizing goes a long way (on both sides).
Whatever your negotiation strategy, staying focused on the biggest issues at hand and acting quickly and clearly will give you the best opportunity for a smooth closing.
And if the seller won’t work with you? The inspection contingency gives you the chance to pull out before closing. There will be other houses, and you’ll be even more prepared the next time around.
FAQs: Common questions about negotiating after a home inspection
Can a buyer back out after a home inspection?
Yes, if you’re still within your inspection contingency period, a buyer can walk away for any reason and get their earnest money back.
What is reasonable to ask for after a home inspection?
It’s reasonable for a buyer to ask for help with big problems: like roof leaks, electrical issues, plumbing problems, or anything that’s unsafe or expensive to fix.
What happens if the seller refuses to make repairs?
You can try asking for a credit or price drop instead. If the seller still says no, you can either accept the house “as-is” or back out, as long as you’re still within your inspection window.
Is a price reduction better than a credit?
Both are good options, so it depends on your situation. A credit gives you money at closing to pay for repairs. A price drop lowers your loan amount and monthly payment.
What does “as-is” mean in a home sale?
“As-is” means the seller doesn’t plan to fix anything. You can still get a home inspection, but some “as-is” sales don’t include an inspection contingency, so you may not be able to negotiate or back out based on the results.
