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Inspection findings inform post-inspection decisions. Buyers must evaluate results and decide whether to proceed, negotiate, or terminate the contract. Understanding options helps buyers navigate this critical decision point effectively.

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Evaluating Findings

Organize findings by type:Safety hazards: Must be addressed regardless of other factorsMajor defects: Significant repairs affecting value or habitabilityMinor defects: Small repairs or maintenance itemsMaintenance items: Normal homeowner responsibilityFocus negotiations on safety and major defects.
For significant issues, obtain contractor quotes:
  • Contact appropriate tradespeople
  • Provide inspection report excerpt
  • Request written estimate
  • Ask about timeline and warranty
Estimates strengthen negotiating position with concrete numbers.
Consider what’s typical:
  • Age of home
  • Price point
  • Market conditions
  • Seller disclosures
  • Comparable properties
A 30-year-old roof in a home priced accordingly is normal, not a defect.
Individual issues may be minor, but consider total burden:
  • Sum of all needed repairs
  • Timeline of replacements
  • Ongoing maintenance required
  • Impact on budget and lifestyle

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Decision Options

Accept property in current condition with no changes.When appropriate:
  • Issues are minor maintenance items
  • Price already reflects condition
  • Market conditions favor sellers
  • You’re comfortable with findings
Releases inspection contingency without negotiation.
Ask seller to complete specific repairs before closing.Pros:
  • Work done before you own property
  • Seller’s contractor handles issues
  • Less out-of-pocket immediately
Cons:
  • Quality depends on seller’s choices
  • May delay closing
  • Limited control over contractors
  • May be done to minimum standard
Ask for reduction in price or closing cost credit.Pros:
  • You control repairs and contractors
  • Choose materials and quality level
  • May exceed repair value in credit
  • No closing delay
Cons:
  • Must pay for repairs yourself
  • Need cash available
  • Repairs are your responsibility
  • Financing may limit credit amount
Reduce purchase price based on findings.Pros:
  • Lower purchase price
  • Reduced mortgage amount
  • Lower monthly payment
Cons:
  • Appraisal must support new price
  • May not equal needed repair cost
  • Seller may resist perception of “lowball”
Exercise inspection contingency to exit transaction.When appropriate:
  • Major defects exceed acceptable risk
  • Issues can’t be reasonably resolved
  • Cost to repair changes property value proposition
  • Safety concerns too significant
  • Negotiations fail
Earnest money typically returned if within contingency period.

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Negotiation Strategies

Limit requests to meaningful issues:
  • Safety hazards
  • Major defects
  • Items affecting habitability
  • Items affecting insurability
Long lists of minor items can backfire. Sellers may refuse to negotiate at all.
Frame requests professionally:Strong approach: “Inspection identified a failed water heater and absence of GFCI protection in bathrooms. We request either repairs or credit of $2,500.”Weak approach: “The house has too many problems. We need $10,000 off.”Tie requests to specific findings with cost support.
Decide what matters most:
  • Safety items (non-negotiable)
  • Big-ticket items (major value impact)
  • Items affecting financing or insurance
  • Nice-to-haves (can concede if needed)
Knowing priorities helps reach agreement.
Understand seller’s position:
  • Repair requests delay closing
  • Credits affect seller net proceeds
  • Seller may have already priced condition
  • Market conditions affect leverage
Reasonable requests are more likely to succeed.
Contractor quotes strengthen requests:
  • Provides specific numbers
  • Demonstrates seriousness
  • Supports request reasonableness
  • Shows you’ve done due diligence
“Three contractors estimate roof replacement at $12,000 - 15,000” is stronger than “the roof needs work.”
Negotiation is give and take. Approaching requests reasonably and professionally produces better results than adversarial demands. The goal is a fair resolution that allows the transaction to proceed.

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What’s Reasonable to Request

  • Safety hazards (electrical issues, missing railings)
  • Active leaks
  • Non-functioning major systems
  • Building code violations
  • Items affecting financing (FHA/VA requirements)
  • Items seller previously agreed to repair
  • Defects not disclosed that should have been
  • Major system repairs (HVAC, roofing, plumbing)
  • Structural issues
  • Water intrusion remediation
  • Pest damage repair
  • Items discovered that change value proposition
Depends on severity, price, and market conditions.
  • Normal maintenance items
  • Cosmetic issues
  • Upgrades or improvements
  • Items visible before offer
  • Wear appropriate for home’s age
  • Minor code items in older homes
These are typically buyer responsibility.
Seller’s market: Less leverage for buyers. Sellers may refuse most requests.Buyer’s market: More leverage. Larger requests may be accepted.Balanced market: Reasonable requests for significant items typically accepted.Adjust expectations based on current conditions.

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Repair vs Credit

  • Safety issues that should be fixed before occupancy
  • Items requiring permits (seller can pull permits more easily)
  • Repairs needed for financing approval
  • When you lack cash for repairs
  • Simple, straightforward repairs
  • Complex repairs where quality matters
  • Items you want to upgrade anyway
  • When you have contractors you prefer
  • Repairs that could delay closing
  • When seller might do minimum quality work
Lenders limit seller credits:
  • Conventional: 3-6% of price (varies by down payment)
  • FHA: 6% of price
  • VA: 4% of price
Credits exceeding limits can’t be applied. May need price reduction instead.
If seller agrees to repairs:
  • Request documentation of work completed
  • Ask for receipts and warranties
  • Have items re-inspected before closing
  • Verify permits if required
  • Walk through before closing to confirm

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When to Walk Away

Foundation problems, major settling, or structural damage can cost tens of thousands and may never fully resolve.Unless priced significantly below market, structural problems often warrant termination.
Significant mold, asbestos, lead, or other environmental issues can be expensive to remediate and may affect health.Consider carefully whether remediation is practical.
Many moderate issues together may exceed reasonable investment.If total repair needs exceed 5-10% of price, evaluate whether property still makes sense.
If seller refuses reasonable requests for significant items:
  • Consider whether you accept property as-is
  • Evaluate if price already reflects issues
  • Decide if issues are acceptable at current price
  • Be prepared to walk if not
Some findings change everything:
  • Issues affecting insurability
  • Problems affecting financing
  • Conditions creating liability
  • Items you simply can’t accept
Inspection contingency exists for these situations.
Walking away is sometimes the right decision. The inspection contingency protects buyers who discover unacceptable conditions. Don’t let emotional attachment or sunk costs push you into a bad purchase.

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The Negotiation Process

1

Review findings with agent

Discuss inspection report and identify items to address in negotiations.
2

Gather supporting information

Obtain repair estimates, specialist evaluations, or other documentation supporting your requests.
3

Prepare request

Create formal request listing items and desired resolution (repair, credit, or price reduction).
4

Submit to seller

Agent delivers request to seller’s agent within contingency timeframe.
5

Seller responds

Seller may accept, reject, or counter-propose.
6

Negotiate if needed

Back-and-forth until agreement reached or negotiations fail.
7

Document agreement

Signed amendment reflecting agreed resolution.
8

Verify completion

If repairs agreed, verify completion before closing.

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Common Outcomes

Seller accepts all requests. Amendment signed. Transaction proceeds.
Seller agrees to some items. Buyer accepts compromise. Most common outcome.
Seller prefers credit to managing repairs. Buyer agrees to handle repairs post-closing.
Seller reduces price to reflect condition. Buyer accepts property as-is at new price.
Seller declines to negotiate. Buyer must accept as-is or terminate.
Parties cannot agree. Buyer exercises contingency. Earnest money returned.

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Documentation

Keep records of:
  • Original inspection report
  • Specialty inspection reports
  • Contractor estimates
  • Negotiation correspondence
  • Signed amendments
  • Repair documentation
  • Re-inspection reports
Any agreed changes should be documented in written amendment:
  • Specific items to be addressed
  • Resolution for each (repair, credit, price change)
  • Deadlines for completion
  • Verification requirements
  • Signatures of all parties
Inspection report useful after purchase for:
  • Warranty claims
  • Insurance claims
  • Future sale disclosure
  • Maintenance planning
  • Contractor reference

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