Should I ask for repairs or a credit?

Should I ask for repairs or a credit?

In most cases, a credit is better than asking the seller to make repairs.

Why credits are usually better:

You control the work. You choose the contractor, the materials, and the timeline. Seller-completed repairs are often done as cheaply as possible, by whoever can do it fastest before closing.

No quality disputes. If the seller makes repairs and you’re unhappy with the work, you’re stuck arguing about it at closing. With a credit, it’s your money to spend as you see fit.

Simpler transaction. Credits don’t require re-inspections, contractor coordination, or verification that work was done correctly. The money just shows up at closing.

When to ask for repairs instead:

Lender-required repairs. Some issues must be fixed before the lender will fund the loan. These have to be completed before closing—a credit won’t work.

Complex issues where cost is uncertain. If you’re not sure a credit will cover the actual repair cost (like structural issues that may be worse than they appear), having the seller fix it transfers that risk to them.

In West Chester, Garnet Valley, Kennett Square, Downingtown, Media, Newtown Square, and Chadds Ford, most inspection negotiations result in credits rather than seller repairs.

What’s the difference between a credit and a price reduction?

Both put money in your pocket, but they work differently:

Repair credit (seller credit): The seller gives you money at closing, typically applied toward your closing costs or prepaid items. The sale price stays the same. This is the most common inspection negotiation outcome.

Price reduction: The sale price itself is lowered. This reduces your loan amount slightly (saving on interest over the life of the loan), but it also lowers the number the appraiser is trying to support.

Which is better?

Credits are usually simpler and more flexible. They don’t affect the appraisal, and you can use the money however you want (within lender guidelines).

Price reductions make sense for major issues where you want the lower price reflected in the transaction record—or if you’re already near the limit of what you can receive in credits based on your loan type.

In practice, most inspection negotiations use credits because they’re easier to execute and don’t require contract amendments that could delay closing.

How much can I ask for after inspection?

Base your request on actual costs, not feelings or arbitrary percentages.

Get estimates. For significant issues, get quotes from licensed contractors. “The roof needs work” is vague. “$8,500 to repair the damaged section per ABC Roofing” is specific and credible.

Document everything. Your request should include the inspection report findings plus repair estimates. Sellers are much more likely to agree when they can see exactly what you’re asking for and why.

Be realistic about what’s negotiable. Material defects, safety hazards, and items that weren’t visible or disclosed before your offer are fair game. Cosmetic issues, normal wear and tear, and things you saw during your showing typically aren’t.

Consider the market. In a seller’s market with multiple interested buyers, aggressive inspection requests may get rejected entirely—or the seller may move on to a backup offer. In a buyer’s market, you have more leverage.

What inspection issues should I negotiate?

Focus on material defects and safety issues—things that affect the home’s structure, systems, or habitability.

Usually negotiable:

• Structural problems (foundation cracks, settling, framing issues)
• Roof damage or leaks
• HVAC system failures or near end-of-life
• Electrical hazards (outdated wiring, panel issues, code violations)
• Plumbing leaks or sewer line problems
• Water intrusion or moisture damage
• Pest damage (termites, carpenter ants)
• Mold or environmental concerns
• Safety issues (missing railings, faulty stairs)

Typically not negotiable:

• Cosmetic issues (scuffed floors, dated fixtures, paint condition)
• Normal wear and tear
• Maintenance items you could see before offering
• Minor code issues in older homes (grandfathered conditions)
• Items already disclosed by the seller
• “I don’t like it” issues

The principle: You’re entitled to a home that functions as represented. You’re not entitled to a perfect home or to have the seller pay for upgrades.

Can the seller refuse my repair request?

Yes. Absolutely.

Your inspection contingency gives you the right to request repairs or credits—and to walk away if you can’t reach agreement. It does not obligate the seller to agree to anything.

The seller can:

• Agree to your full request
• Agree to part of your request
• Counter with a lower credit or different terms
• Refuse entirely

If they refuse and you can’t reach agreement, you’ll need to decide: accept the home as-is, or exercise your contingency and walk away (with your earnest money protected).

Factors that affect seller flexibility:

• Market conditions (seller’s market = less flexibility)
• Backup offers (if other buyers are waiting, less incentive to negotiate)
• Seller motivation (needs to sell vs. testing the market)
• Size and reasonableness of your request
• How far into the process you are (more invested = more likely to negotiate)

What are lender-required repairs?

Some issues must be fixed before your lender will fund the loan—regardless of what you and the seller negotiate.

Common lender-required repairs:

• Peeling paint in homes built before 1978 (lead paint concern)
• Missing or broken handrails
• Broken windows
• Non-functional HVAC, plumbing, or electrical
• Roof damage affecting habitability
• Structural safety concerns
• Active water intrusion
• Health and safety hazards

FHA and VA loans have the strictest requirements. Conventional loans are more flexible but still have minimum standards.

Who pays? That’s negotiable. The repairs must happen, but whether the seller pays, you pay, or you split the cost is part of the negotiation. Typically, buyers ask sellers to handle lender-required repairs since they’re non-optional for the deal to close.

Should I walk away if the inspection reveals major issues?

It depends on the issue, the cost, and your situation.

Consider walking away if:

• The issue is too expensive or uncertain to quantify (major structural failure, environmental contamination)
• The problem is systemic and suggests more issues will emerge
• The seller refuses to negotiate reasonably on material defects
• You’ve lost confidence in the home or the transaction
• The cost to fix exceeds what you can handle financially

Consider staying if:

• The issue is quantifiable and the seller provides adequate credit
• You can fix the problem at a known cost and still have a good deal
• The issue doesn’t change your fundamental desire for the home
• The home is hard to replace (location, features, price point)

The key question: “Would I buy this home at this price, knowing about this issue?” If yes, negotiate for appropriate compensation. If no, use your contingency and walk away—that’s what it’s for.

How do I negotiate without killing the deal?

Inspection negotiations fail when they become adversarial. Keep these principles in mind:

Be reasonable. Ask for what you need, not everything you can think of. A focused request on material issues is more likely to succeed than a 15-item wish list.

Prioritize. Identify your must-haves versus nice-to-haves. Be prepared to drop minor items to get agreement on major ones.

Document your request. Include the inspection report pages and repair estimates. “I’m asking for $7,500 based on these three estimates” is more compelling than “I want $10,000.”

Stay professional. This is a business negotiation, not a fight. Your agent should communicate requests calmly and factually. Emotional demands or accusations damage relationships and reduce cooperation.

Consider the seller’s perspective. They’ve already agreed to sell you their home. They’re not trying to cheat you. Approach the conversation as problem-solving, not combat.

Know when to compromise. If you’re $1,500 apart on a $500,000 deal, splitting the difference is almost always the right call. Don’t lose a home over small amounts.

What if the seller only agrees to part of my request?

This is the most common outcome. You asked for $12,000; they offered $7,000. Now what?

Evaluate the gap. Is the partial credit enough to cover the critical items? Can you live with paying the difference on lower-priority repairs?

Counter if there’s room. If their offer is genuinely too low to cover necessary repairs, counter with a number you can accept—and explain why.

Consider the full picture. What did you pay for the home? How does the price plus repairs compare to other options? A partial credit on a well-priced home may still be a good deal.

Decide your walk-away point. Before countering, know the minimum you’ll accept. If they can’t meet it, you need to be prepared to use your contingency.

Accept and move forward. If the partial credit is workable, accept it. Continuing to negotiate over small amounts after you’ve reached reasonable terms creates friction that can affect the rest of the transaction.

What happens after we agree on repairs or credits?

Once you reach agreement, the inspection contingency is typically resolved through an amendment to the contract.

For credits: The amendment specifies the credit amount and how it will be applied at closing. The transaction proceeds toward closing with the credit built in.

For seller repairs: The amendment specifies what work will be done, by when, and often requires licensed contractors. You may want a re-inspection to verify the work was completed satisfactorily before closing.

For price reductions: The amendment changes the purchase price. Your lender will need the updated contract.

After the amendment is signed by both parties, you remove the inspection contingency (or it expires per contract terms), and the transaction moves forward to appraisal, final loan approval, and closing.

What if we can’t reach agreement?

If you and the seller can’t agree on inspection resolution, you have two choices:

Accept the home as-is. Remove your contingency and proceed to closing without credits or repairs. You’ve decided the home is worth it to you even with the known issues.

Exercise your contingency and walk away. If the issues are too significant and the seller won’t provide adequate compensation, terminate the contract. Your earnest money is protected as long as you’re within your contingency period and following contract procedures.

Neither option is wrong—it depends on your assessment of the home’s value, the cost of repairs, and your alternatives. Sometimes walking away is the right call. Sometimes accepting as-is still makes sense.

You can review current market conditions in our Market Intelligence reports to help calibrate your decision.