Should You Ask the Seller to Make the Repair or Give You a Credit?

One of the questions that comes up all the time during a home inspection is:

Should we ask the seller to fix this, or should we ask for a credit and handle it ourselves after closing?

There is not one answer that works for every repair.

But there is a pretty simple way we tend to look at it:

If the scope of the problem is unknown and could get worse once work starts, we usually prefer the seller to make the repair.

If the problem is clearly defined and the buyer would benefit from controlling the contractor, materials or replacement, a credit can make more sense.

We recently represented buyers on a transaction where this became a major part of the inspection process.

The home had quite a bit of deferred maintenance, and our offer already reflected that.

We do not believe in writing an offer with the intention of using the home inspection as a second round of negotiations to squeeze more money out of the seller.

If something is clearly visible when we tour the property, we try to account for that when we write the offer.

But an inspection can uncover things you simply cannot see during a normal showing.

And this house had plenty of them.

What the Inspection Found

There were plumbing issues.

There were electrical issues.

The HVAC system was not working properly.

There was water intrusion in the basement that had caused mold to develop on the walls.

And there was significant root intrusion in the main sewer line.

Basically, quite a few things that you would rather know about before you own the house than after.

The question was not whether these items mattered.

The question was how we wanted each one handled.

Some Problems Can Snowball

The sewer line was one of the items we specifically wanted the seller to address before closing.

There was substantial root intrusion, and with sewer issues, the problem you see on the camera is not always the full problem.

Once work begins, the scope can grow.

Maybe the roots are worse than expected.

Maybe the pipe is damaged.

Maybe a section needs to be repaired or replaced.

It can be a little like peeling back a Band-Aid. You know there is a problem, but you do not always know exactly what is underneath until the work starts.

In situations like that, I would much rather have the issue resolved before my buyer owns the property.

The seller ultimately had the sewer work completed prior to closing.

That removed a major unknown for our buyers before they took ownership.

Water Is the Enemy of Your Home

The basement was another important issue.

There was water intrusion and mold on the walls.

The source appeared to be improper grading around the property. Instead of directing water away from the foundation, the grading was allowing water to flow toward the house.

Water problems are something we take very seriously because the visible damage is not always the entire story.

A small stain can be a small problem.

It can also be evidence of something much larger.

Where is the water coming from?

How long has it been happening?

Is there hidden damage?

Is there mold somewhere you cannot see?

Has the foundation been affected?

Those unknowns are why water intrusion often falls into the category of something we want properly investigated and corrected, rather than simply assigning a number to it and moving on.

When a Credit Makes More Sense

Now compare that with something like an HVAC system that is not working.

That can often be a much better candidate for a credit.

If we know the system needs to be repaired or replaced, the buyer may actually prefer to take the money and handle it themselves.

They can choose the contractor.

They can decide what system they want.

They can control the quality of the work.

They may even decide to upgrade rather than simply replace what was there.

That is a very different situation from opening up a sewer line or chasing down the source of a water problem.

The issue is more defined.

The buyer understands what they are taking on.

That makes a credit much easier to evaluate.

There are also situations where we may prefer a credit simply because the seller is being difficult about repairs.

If we are not confident that the work is going to be done correctly, sometimes it is better to negotiate money instead and let the buyer control the repair after closing.

Of course, credits can be subject to lender and loan-program limitations, so they still need to be structured correctly within the transaction.

If the Seller Is Making the Repair, We Want Documentation

When we do ask a seller to complete work before closing, we do not want a vague promise that something has been "taken care of."

Depending on the repair, we may ask for:

• A licensed contractor
  
  
• Receipts or paid invoices
  
  
• Permits when required
  
  
• Proof that the work was completed
  
  
• A reinspection when appropriate
  
  

The goal is not to make the transaction unnecessarily difficult.

It is to make sure that if the buyer is agreeing to move forward based on the seller fixing something, the repair is actually completed correctly.

Inspection Is Not a Second Chance to Renegotiate the House

This is probably the most important part of the conversation.

A home inspection should not be treated as an opportunity to renegotiate every item in the house.

A scratched floor you saw at the showing is not a surprise.

Old cabinets are not a surprise.

A roof that is visibly near the end of its life may not be a surprise.

Those are things that should factor into the offer you make.

Inspection is most valuable when it identifies material problems that a buyer could not reasonably have known about beforehand.

That is where good representation matters.

The goal is not to "win" the inspection negotiation.

The goal is to understand the risk, determine the best way to address it, and protect the buyer from taking on a problem they were not expecting.

A Simple Way to Think About It

When we are deciding between a repair and a credit, this is usually the framework:

Unknown scope with the potential to get much worse? Ask for the repair.

Sewer issues, major water intrusion, structural concerns and certain health or safety issues often fall into this category.

Clearly defined problem that you would rather control yourself? Consider a credit.

HVAC equipment, appliances or other predictable repairs can often make more sense here.

It is not a hard rule.

Every house, seller and transaction is different.

But it gives buyers a much better starting point than simply asking for a credit on everything that comes up during an inspection.

Buying a Home and Not Sure How to Approach the Inspection?

A good inspection strategy starts before you ever get the report back.

If you are planning to buy and want help thinking through the offer, inspection, negotiation and overall strategy, you can book a strategy session with us.

It is completely free, and there is no obligation to work with us.

[Book a Buyer Strategy Session]

The Bottom Line

When something comes up during a home inspection, the biggest question is not always:

How much money should we ask for?

Sometimes the more important question is:

Who should be responsible for solving the problem?

If the repair has a lot of unknowns and could snowball once work begins, we usually want the seller to take responsibility for getting it resolved.

If it is a defined problem and the buyer would benefit from controlling the repair, a credit can often make more sense.

The goal is not to squeeze every possible dollar out of the seller.

The goal is to make sure the buyer understands what they are purchasing and walks into the home with as few unwanted surprises as possible.

If you are getting ready to buy and want a clear plan before you start making offers, you can book a free strategy session with us below.

There is no obligation to work with us.

[Book a Buyer Strategy Session]

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