Repair Requests Are Negotiations: How to Respond After the Inspection

Do California sellers have to make every repair a buyer asks for?

No.

In a typical California home sale, the property is sold in its current condition. A buyer can still ask for repairs after their inspection, but that request is a negotiation.

You can agree to the repairs, offer a credit, reduce the price, counter the request, or say no.

And that’s important because repair requests can feel more demanding than they really are.

A long list shows up with an inspection report attached. There may be 10, 15, or even more items. It can look like a bill the seller is expected to pay.

It isn’t.

The mistake I see sellers make is going to one extreme or the other. They either agree to almost everything because they’re afraid of losing the buyer, or they get frustrated and refuse everything.

Neither approach is usually the best one.

The better move is to look at what the buyer is asking for, what actually matters, and what could affect the transaction.

Here’s how I break it down with sellers.

The Buyer Can Ask. You Can Negotiate.

Under the California Association of REALTORS® Residential Purchase Agreement, the home is generally sold in its present condition.

That doesn’t mean the buyer can’t ask for repairs.

After inspections, the buyer may ask you to:

• Make certain repairs

• Address pest-related items

• Give them a closing-cost credit

• Reduce the purchase price

But a request is still a request.

You don’t automatically have to agree to everything on the list.

That said, selling a home “as-is” does not remove your responsibility to disclose known material facts about the property.

You’re also expected to deliver the property in substantially the same condition it was in when the offer was accepted.

So if something is damaged after you enter escrow, that is a different issue from something the buyer discovers during their inspection.

Look at the Request Before You Look at the Dollar Amount

Before deciding what you’re willing to give, take a good look at the list itself.

It can tell you a lot about the buyer.

If they’re asking for three or four important items involving safety, plumbing, electrical, the roof, HVAC, or another major system, they may simply be trying to solve a legitimate concern.

That is very different from a buyer who copies nearly every comment from the inspection report and asks the seller to fix all of it.

Inspectors are supposed to point things out. That doesn’t mean every item needs to become a repair request.

A very long request can sometimes mean the buyer is trying to renegotiate the deal. Other times, it may simply be an inexperienced buyer or agent.

This is where communication matters.

Before responding, your agent should talk with the buyer’s agent and find out what really matters to the buyer.

You may discover that 15 items are listed, but only two or three are actually important.

You Have Four Main Options

Most repair negotiations come down to four choices.

1. Make the Repair

Sometimes fixing the item is the easiest answer.

This can make sense when the repair is inexpensive, easy to complete, or something a lender or appraiser may require anyway.

If you agree to make repairs, they should be completed properly. Buyers may also ask for invoices or receipts showing the work was done.

2. Give the Buyer a Credit

For many sellers, this is the simplest option.

Instead of coordinating contractors during escrow, you give the buyer an agreed-upon credit toward allowable closing costs.

The buyer can deal with the repair after closing.

This can be especially helpful for buyers who are short on cash.

But there is one important catch:

The buyer’s lender has to allow the credit.

You can’t simply agree to any amount you want.

3. Reduce the Purchase Price

A price reduction is different from a credit.

Lowering the price can reduce the buyer’s loan amount, but it doesn’t necessarily give them more cash at closing.

For a buyer who needs help with closing costs, a credit may be more useful.

But if the lender will not allow a larger seller credit, a price reduction may be another option.

4. Say No

You can also decline some or all of the buyer’s request.

Whether that makes sense depends on the situation.

If you have a strong buyer, plenty of interest in the property, and a request that seems unreasonable, saying no may be worth considering.

But you also have to think about what happens if the buyer walks away.

Would the next buyer find the same issue?

Would you lose several weeks putting the home back on the market?

Would another buyer ask for the same repair?

Sometimes winning the argument costs more than simply reaching a reasonable compromise.

Be Careful With Seller Credits

Seller credits can be useful, but there are limits.

The buyer’s loan program, down payment, closing costs, and lender guidelines can all affect how much the seller is allowed to contribute.

For example, FHA, VA, and conventional loans each have their own rules regarding seller contributions.

And just because you agree to a $10,000 or $15,000 credit doesn’t mean the buyer can necessarily use the full amount.

Seller credits generally need to go toward allowable costs such as:

• Closing costs

• Prepaid expenses

• Certain lender fees

• Interest-rate buydowns

They generally can’t simply be handed to the buyer as cash.

And if the buyer doesn’t have enough eligible closing costs to use the full credit, part of that credit may not provide the benefit everyone expected.

That’s why I recommend checking with the buyer’s lender before agreeing to a large credit.

You want to know the credit actually works before you sign off on it.

FHA and VA Buyers Need a Little Extra Attention

This is especially important in areas like Victorville, Hesperia, Apple Valley, Adelanto, and other parts of the High Desert where FHA and VA financing is common.

The buyer’s home inspector and the lender’s appraiser are looking at the property for different reasons.

A home inspector may identify items the buyer wants repaired.

An FHA or VA appraiser may identify something that has to be addressed for the loan to move forward.

That could include things such as:

• Peeling paint on certain older homes

• Missing handrails

• Exposed wiring

• Water-heater issues

• Certain health or safety concerns

These are not exactly the same as a normal buyer repair request.

The seller may still have choices, but there’s a practical issue to consider.

If the repair prevents an FHA or VA loan from closing, refusing to address it could mean losing that buyer.

And if the next buyer is also using FHA or VA financing, the same issue may come up again.

That’s why I like to separate repairs into two categories:

Buyer-requested inspection items and lender/appraiser-required items.

They should not automatically be treated the same way.

Pay Attention to Your Deadlines

Repair negotiations also happen on a timeline.

The standard California purchase agreement includes an investigation contingency period unless the buyer and seller agree to different terms.

During that time, the buyer completes inspections and decides whether to move forward with the property.

If a contingency deadline passes and the buyer has not removed it, there are contract procedures the seller may be able to use to move the transaction forward.

This is another reason not to let a repair request sit unanswered for too long.

The goal is to get clarity.

Are we moving forward?

Are we negotiating?

Or is the buyer preparing to cancel?

The sooner you know, the better you can protect your sale.

Think About What a Cancellation Would Really Cost

When sellers get a frustrating repair request, it’s easy to focus on whether the buyer is being “fair.”

But that isn’t always the most important question.

The better question is:

What will it cost me if this buyer cancels?

You may have to put the home back on the market.

You may lose several weeks.

You may need another round of showings.

And if the inspection uncovered a material issue, that information may also become something you need to disclose to future buyers.

Most importantly, the next buyer may notice the same problem and ask for the same thing.

So before refusing a reasonable request over $2,000 or $3,000, look at the bigger picture.

Sometimes a small compromise protects a much larger transaction.

What This Means for Inland Empire and High Desert Sellers

In Riverside and San Bernardino Counties, we see plenty of first-time buyers and buyers using FHA or VA financing.

Many of those buyers are working with limited cash.

That can make a seller credit more valuable to them than having the seller complete a minor repair.

But the credit still has to work with their loan.

Before responding to a repair request, I recommend getting three pieces of information:

1. What will the repair actually cost?

2. How much credit will the buyer’s lender allow?

3. Could the problem come up again with the appraiser or another buyer?

Once you know those numbers, the decision usually becomes much easier.

FAQ

Can a California seller refuse to make repairs?

Yes. A seller does not automatically have to agree to repairs requested after a home inspection.

The seller may agree, counter, offer another solution, or decline the request.

The buyer’s options will depend on the terms and contingencies in their contract.

Is it better to give a repair credit or make the repairs?

It depends on the situation.

For many sellers, a credit is easier because you don’t have to hire contractors and manage repairs during escrow.

But the buyer’s lender has to approve the credit, and the buyer needs enough allowable closing costs to use it.

For some items, completing the repair may make more sense.

What happens if I don’t respond to a repair request?

There isn’t an automatic agreement just because the buyer sent a request.

But leaving the issue unresolved can also leave the transaction stuck.

In most situations, it’s better to respond and get a clear answer so everyone knows whether the transaction is moving forward.

Bottom Line

A repair request doesn’t mean you have to fix everything.

It means you have another decision to make.

Look at what really matters. Find out what the repairs cost. Check what the lender will allow. And think about the cost of losing the buyer compared with the cost of reaching a reasonable agreement.

The goal isn’t to “win” the repair negotiation.

The goal is to protect your money and get the home closed.

This article is general information for California home sellers and is not legal or lending advice. Contract terms, loan guidelines, and lender requirements can change. Always review the details of your transaction with your real estate agent, attorney, and the buyer’s lender when appropriate.

If you just received a repair request and you’re not sure what to agree to, let’s look at the numbers before you respond.

Amanda Zito, REALTOR®
Real Brokerage
CA DRE #01740063 | TX TREC #840088
SoldByZito.com