Inspection Responses: How to Negotiate Repairs and Credits After Inspection

Learn how to create effective inspection responses, prioritize issues, choose between repairs and credits, and negotiate successfully in Seattle's market.

Tags:inspection-response, repair-negotiation, inspection-contingency, home-inspection, buyer-negotiation
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The inspection report arrived. Fifty pages, dozens of issues. The roof needs work ($8,000). The electrical panel should be replaced ($2,500). The sewer line has root intrusion ($6,000). Plus twenty minor items.

Do you ask the seller to fix everything? Request credits? Walk away? How you respond to the inspection determines whether you get a good deal, overpay for problems, or lose the house entirely.

In this article, you'll learn:

  • How to create an effective inspection response
  • What to request (repairs vs credits vs price reduction)
  • How to prioritize issues strategically
  • What sellers typically agree to (and don't)
  • How to handle seller's response (agree, counter, refuse)
  • Re-inspection process and verification
  • Real Seattle negotiation examples
  • When to walk away

This article is for you if: You've received your inspection report and need to decide what to request from the seller.

Table of Contents

Creating Your Inspection Response

Timeline

Typical inspection period: 10 days

Your timeline:

  • Day 1–3: Schedule and complete inspection
  • Day 4–6: Review report, get estimates
  • Day 7–9: Prepare and submit response
  • Day 10: Deadline (don't miss it!)

Critical: Submit response before deadline or contingency is automatically removed.

What to Include

Required elements:

  1. Reference to inspection report
  2. Specific items you're requesting
  3. Estimated costs (for major items)
  4. Deadline for seller's response
  5. Your signature

Format:

  • In writing (email acceptable)
  • Professional tone
  • Specific and clear
  • Organized by priority
  • Include supporting documentation

Strategic Approach

Don't request everything:

  • Focus on major issues
  • Safety and systems priority
  • Ignore minor cosmetic items
  • Be reasonable

Why:

  • Seller more likely to agree
  • Shows you're serious buyer
  • Maintains good relationship
  • Increases chance of success

Seattle market consideration:

  • Hot market: Request less (competition)
  • Normal market: Request reasonably
  • Slow market: Request more (leverage)

Prioritizing Issues

Category 1: Safety Issues (Must Address)

Examples:

  • Electrical hazards (exposed wiring, faulty panel)
  • Structural problems (foundation cracks, roof damage)
  • Fire safety (non-functional smoke detectors)
  • Gas leaks
  • Carbon monoxide risks

Why priority:

  • Immediate danger
  • Liability concerns
  • Lender may require fixes
  • Insurance may require fixes

Typical seller response:

  • Usually agrees to fix
  • Understands liability
  • May be required by law

Category 2: Major Systems (High Priority)

Examples:

  • HVAC not functioning
  • Roof leaks or near end of life
  • Plumbing issues
  • Electrical panel upgrade needed
  • Sewer line problems

Why priority:

  • Expensive to fix ($2,000–$20,000+)
  • Affects habitability
  • Impacts home value
  • May worsen if ignored

Typical seller response:

  • Often agrees to credit or repair
  • May negotiate amount
  • Depends on market conditions

Category 3: Minor Repairs (Medium Priority)

Examples:

  • Leaky faucets
  • Broken appliances
  • Damaged gutters
  • Cracked windows
  • Worn weatherstripping

Why lower priority:

  • Less expensive ($100–$1,000)
  • Doesn't affect safety
  • Easy to fix yourself
  • Normal wear and tear

Typical seller response:

  • May agree to some
  • Often negotiates
  • May refuse in hot market

Category 4: Cosmetic Issues (Low Priority)

Examples:

  • Worn paint
  • Scratched floors
  • Outdated fixtures
  • Landscaping needs

Why lowest priority:

  • Doesn't affect function
  • Personal preference
  • Expected in used homes
  • Easy to address over time

Typical seller response:

  • Usually refuses
  • "Sold as-is" for cosmetic
  • Not worth negotiating

What to Request

Option 1: Repairs by Seller

What it means:

  • Seller hires contractors
  • Completes repairs before closing
  • You verify completion
  • Seller pays all costs

Advantages:

  • No cash outlay from you
  • Problems fixed before you own
  • Can verify quality before closing
  • Seller handles coordination

Disadvantages:

  • Less control over contractors
  • Quality may vary
  • Rushed repairs possible
  • Seller chooses cheapest option

Best for:

  • Safety issues (must be fixed)
  • Major systems (roof, HVAC, electrical)
  • Items requiring permits
  • When seller has time

Example request:

"Electrical Panel Replacement: Replace Federal Pacific electrical panel with modern panel by licensed electrician. Provide receipt and permit documentation. Estimated cost: $2,500."

Option 2: Credits at Closing

What it means:

  • Seller gives you money at closing
  • You handle repairs yourself
  • Choose your own contractors
  • Complete repairs on your timeline

Advantages:

  • Control over contractors
  • Choose quality level
  • Do repairs on your schedule
  • May cost less (you shop around)

Disadvantages:

  • Requires cash at closing
  • You handle coordination
  • Repairs are your responsibility
  • May not get done

Best for:

  • Non-urgent repairs
  • When you want control
  • When seller doesn't have time
  • Multiple small items

Example request:

"Roof Repairs: Credit of $8,000 at closing for roof repairs identified in inspection report (pages 12–15)."

Option 3: Price Reduction

What it means:

  • Lower purchase price
  • Same as credit but affects loan amount
  • You handle repairs
  • Reduces your loan amount

Advantages:

  • Lower mortgage payment
  • Lower property taxes
  • Same as credit for repairs
  • Reduces total debt

Disadvantages:

  • Seller may prefer credit
  • Affects appraisal considerations
  • May complicate financing

Best for:

  • Large repair costs
  • When you want lower payment
  • When seller prefers this approach

Example request:

"Price Reduction: Reduce purchase price by $10,000 to account for roof replacement and HVAC repairs."

Option 4: Combination Approach

What it means:

  • Mix of repairs, credits, and price reduction
  • Addresses different issues differently
  • Flexible negotiation

Example:

"Safety Issues: Seller to repair electrical panel and gas leak before closing.

Major Systems: Credit of $8,000 for roof repairs.

Minor Items: Price reduction of $2,000 for miscellaneous repairs."

Advantages:

  • Flexible
  • Addresses priorities appropriately
  • Shows reasonableness
  • More likely to be accepted

Getting Contractor Estimates

Why You Need Estimates

Credibility:

  • Shows you've done homework
  • Provides specific numbers
  • Harder for seller to dispute

Negotiation leverage:

  • Establishes fair market cost
  • Prevents lowball counteroffers
  • Shows you're serious

Decision-making:

  • Helps you decide what to request
  • Understand true costs
  • Prioritize issues

How to Get Estimates Quickly

Timeline challenge:

  • Only 10 days for inspection period
  • Need estimates by day 6–7
  • Contractors may not be available

Solutions:

1. Ask inspector for referrals:

  • Inspectors know contractors
  • Can often get quick estimates
  • May expedite for inspector referrals

2. Use your agent's network:

  • Agents have contractor relationships
  • Can get quick turnaround
  • May get better pricing

3. Request rough estimates:

  • Don't need detailed bids
  • Ballpark numbers acceptable
  • Can refine later if needed

4. Use online resources:

  • HomeAdvisor, Angi, Thumbtack
  • Can get quick quotes
  • Compare multiple contractors

What to Include in Request

Be specific:

  • Reference inspection report page
  • Describe issue clearly
  • Ask for itemized estimate
  • Request timeline

Example:

"Need estimate for electrical panel replacement. Current panel is Federal Pacific, identified as safety hazard in home inspection (page 8). Need licensed electrician, permit required. Please provide itemized estimate and timeline."

Seller's Response Options

Option 1: Agree to All Requests

Rare but possible:

  • Seller motivated to close
  • Requests are reasonable
  • Market favors buyers
  • Seller wants clean transaction

Your response:

  • Accept graciously
  • Verify completion timeline
  • Schedule re-inspection
  • Proceed to closing

Option 2: Agree to Some, Refuse Others

Most common response:

  • Seller agrees to major items
  • Refuses minor/cosmetic items
  • May offer different amounts
  • Negotiates middle ground

Your response:

  • Evaluate what's most important
  • Decide if acceptable
  • Counter if needed
  • Consider walking away if critical items refused

Example:

Your request:

  • Electrical panel: $2,500
  • Roof repairs: $8,000
  • Sewer scope and repair: $6,000
  • Minor repairs: $1,500
  • Total: $18,000

Seller's response:

  • Agrees to electrical panel repair
  • Offers $5,000 credit for roof
  • Refuses sewer and minor repairs

Your options:

  • Accept (if you can afford sewer repair)
  • Counter (ask for $8,000 total credit)
  • Walk away (if sewer is deal-breaker)

Option 3: Refuse All Requests

Possible in hot market:

  • Multiple backup offers
  • Seller confident can sell to someone else
  • Property priced accordingly
  • "As-is" market conditions

Your response:

  • Evaluate if you can afford repairs
  • Consider if price is still fair
  • Decide if you want to proceed
  • Walk away if too risky

Option 4: Counter with Different Proposal

Seller may suggest:

  • Different repair approach
  • Lower credit amount
  • Split costs
  • Alternative solutions

Example:

Your request: $8,000 credit for roof replacement

Seller's counter: $4,000 credit plus seller will repair obvious leaks

Your evaluation:

  • Is $4,000 + repairs enough?
  • Can you afford remaining $4,000?
  • Is this fair compromise?

Re-Inspection and Verification

When Seller Completes Repairs

Schedule re-inspection:

  • Before closing
  • Same inspector if possible
  • Verify repairs completed properly
  • Check for new issues

Cost: $150–$300 (typical)

What inspector checks:

  • Repairs completed as agreed
  • Work done properly
  • Permits obtained if required
  • No new damage from repairs

What to Verify

Documentation:

  • Receipts from contractors
  • Permits (if required)
  • Warranty information
  • Before/after photos

Quality:

  • Work completed fully
  • Professional quality
  • Meets code requirements
  • No shortcuts taken

If repairs inadequate:

  • Document issues
  • Request completion or additional credit
  • May delay closing
  • May walk away if serious

Real Seattle Examples

Example 1: Successful Negotiation

Property: $875,000 house in Ballard

Inspection findings:

  • Electrical panel (Federal Pacific): $2,500
  • Roof needs replacement: $18,000
  • Sewer line root intrusion: $6,000
  • Minor items: $2,000
  • Total: $28,500

Buyer's request:

  • Electrical panel: Seller to repair
  • Roof: $15,000 credit (buyer will replace)
  • Sewer: $6,000 credit
  • Minor items: Buyer will handle
  • Total request: $23,500

Seller's response:

  • Agrees to electrical panel repair
  • Offers $12,000 credit for roof
  • Offers $4,000 credit for sewer
  • Total: $16,000 + repair

Buyer's counter:

  • Accepts electrical panel repair
  • Requests $14,000 for roof
  • Accepts $4,000 for sewer
  • Total: $18,000 + repair

Final agreement:

  • Electrical panel repair by seller
  • $13,000 credit for roof
  • $4,000 credit for sewer
  • Total: $17,000 + repair

Result: Both parties compromised, deal closed successfully

Example 2: Walking Away

Property: $650,000 house in Renton

Inspection findings:

  • Foundation cracks: $35,000
  • Roof leaks: $12,000
  • HVAC not functioning: $8,000
  • Total: $55,000

Buyer's request:

  • Foundation: Seller to repair or $35,000 credit
  • Roof: $12,000 credit
  • HVAC: $8,000 credit
  • Total: $55,000

Seller's response:

  • Refuses all requests
  • "Sold as-is"
  • Has backup offers

Buyer's decision:

  • Walks away
  • Too much risk
  • Can't afford $55,000 in repairs
  • Earnest money returned (within contingency period)

Result: Buyer protected by inspection contingency

When to Walk Away

Red Flags

Major structural issues:

  • Foundation problems
  • Roof near end of life
  • Extensive water damage
  • Mold throughout

Seller refuses critical repairs:

  • Safety issues not addressed
  • Major systems not fixed
  • Seller unwilling to negotiate

Total repair costs too high:

  • Exceeds your budget
  • Makes home overpriced
  • Better deals available

Seller dishonest:

  • Hid known issues
  • Misrepresented condition
  • Refuses to provide documentation

How to Walk Away

Within contingency period:

  • Submit written notice
  • Reference inspection contingency
  • Request earnest money return
  • No penalty

After contingency period:

  • May lose earnest money
  • May face legal action
  • Consult attorney

Important: Don't miss contingency deadline!

Summary: Key Takeaways

  • Prioritize issues - Safety first, then major systems, then minor repairs
  • Get estimates - Contractor quotes strengthen your negotiation
  • Be strategic - Don't request everything, focus on what matters
  • Choose approach - Repairs, credits, or price reduction based on situation
  • Expect negotiation - Seller rarely agrees to everything
  • Verify repairs - Re-inspect before closing if seller completes work
  • Know when to walk - Some issues are deal-breakers
  • Meet deadlines - Submit response before contingency expires

Next Steps

  1. Review inspection report - Highlight major issues
  2. Get contractor estimates - For major items (2–3 quotes)
  3. Prioritize requests - Safety, systems, then minor items
  4. Draft response - Professional, specific, reasonable
  5. Submit before deadline - Don't miss contingency period
  6. Negotiate if needed - Be prepared to compromise
  7. Schedule re-inspection - If seller completes repairs
  8. Verify completion - Before closing

Related articles:

Additional Resources

Find contractors:

Your agent:

  • Can provide contractor referrals
  • Helps draft inspection response
  • Negotiates on your behalf
  • Advises on strategy

Your inspector:

  • Can clarify report items
  • May provide contractor referrals
  • Available for re-inspection

Disclaimer: This article provides general guidance for inspection responses and should not be considered legal advice. Inspection contingency terms vary by contract. Consult with your real estate agent and attorney for guidance specific to your situation.

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