Once the home inspection is complete, the buyer will receive a comprehensive report detailing the condition of the property. Based on this report, the buyer may request repairs, ask for credits, renegotiate the price, or even walk away if significant issues are uncovered. For sellers, being prepared for what comes next can make all the difference in ensuring a smooth closing.
Whether you are selling a home in Austin, TX, Seattle, WA, or Atlanta, GA, this Redfin guide will provide you with a step-by-step walkthrough of what to expect after a home inspection as a seller and how to strategically prepare and respond.
What Happens After a Home Inspection?
Following a home inspection, the buyer and their agent will review a detailed report on the home’s condition, covering major systems such as HVAC, plumbing, and electrical, as well as potential concerns, appliances, and safety items. The findings will be categorized as major defects, safety hazards, or cosmetic issues.
Once the buyer has reviewed the report, they will present their requests to the seller, which could lead to several outcomes:
- Moving forward as-is: The buyer accepts the home without any changes.
- Repair requests: The seller may be asked to complete specific fixes before closing.
- Credit requests: The buyer may request a monetary credit at closing to address issues themselves.
- Negotiation: Both parties may adjust terms to ensure the deal moves forward.
- Cancellation: If the issues are significant, the buyer may walk away under their inspection contingency.
Understanding Your Obligations for Repairs
It is crucial for sellers to know that not all repair requests are negotiable. Some repairs may be legally or financially required, and being aware of this beforehand can help sellers respond strategically, manage costs, and facilitate a successful closing.
- Inspection contingencies: Buyers have the right to request repairs or cancel within a specified timeframe.
- Loan program requirements (FHA, VA, USDA): Certain programs may mandate fixes for safety and habitability issues.
- Local and state regulations: Some regions may require specific disclosures or mandatory repairs.
Common Repair Requests and Costs
As a seller, understanding common repair requests and their associated costs can help you anticipate buyer demands and budget effectively.
Buyers often request fixes for:
- Roof damage or leaks
- Structural or foundation issues
- Plumbing leaks or corroded pipes
- Electrical hazards
- HVAC malfunctions
- Pest or mold remediation
Cost ranges:
- Minor fixes: $100–$500
- Moderate repairs: $500–$2,000
- Major repairs: $5,000–$15,000+
Responding to Buyer Requests as a Seller
Once the buyer presents their requests, it is up to the seller to decide how to proceed. The seller’s response will shape the negotiation process and determine the smoothness of the closing.
| Seller Option | Pros / Cons |
| Make all requested repairs | + Satisfies buyer and clears path to closing
+ Reduces risk of renegotiation or cancellation + Can smooth appraisal + Shows goodwill – Expensive, especially for major issues – Time-consuming, may delay closing – Fixes cosmetic items with little value – Risk of rushed, low-quality work
|
| Make selective repairs | + Focus on major, safety, or lender-required fixes
+ Save money on minor issues + Balanced, cooperative approach + Works well in competitive markets – Buyers may feel only partly satisfied – Too many refusals risk cancellation – Unresolved issues may resurface later
|
| Offer financial concessions/repairs | + Buyer manages repairs their way
+ Saves you time and stress + Keeps closing on track + Flexible (price cut or closing cost credit) – Buyers may inflate repair costs – Reduces your net proceeds – Lender restrictions may apply – Buyers may remain uneasy about big-ticket issues
|
| Refuse repair requests | + No added cost
+ Can succeed in hot markets + Appeals to sellers wanting a clean deal – Longer time on market, higher carrying costs – May weaken your negotiating position
|
Negotiating and Amending the Contract
Once an agreement is reached on repairs or credits, it is essential to document everything in writing. Any changes to the original deal should be outlined in an addendum to the purchase contract, specifying responsibilities, deadlines, and verification processes.
Common negotiation strategies include:
- Counteroffers: Agree to major or safety fixes, offer a smaller credit, or adjust the price.
- Credits vs. repairs: Decide whether to complete the work yourself or provide a credit at closing.
- Escrow hold-backs: Set aside funds at closing if repairs cannot be completed in time.
Handling Setbacks After Inspection
Even with thorough preparation, obstacles may arise. Here’s how to address common challenges:
Buyer Walks Away
- Relist quickly: Work with your agent to relist the property promptly.
- Reevaluate your approach: Review feedback to identify necessary adjustments.
- Follow up with other buyers: Reach out to previous interested parties.
Low Appraisal
- Challenge the appraisal: Provide evidence to support the property’s value.
- Renegotiate: Adjust the price or share costs with the buyer.
- Offer concessions: Cover certain closing costs to move the deal forward.
- Relist if necessary: Use appraisal feedback to set a realistic price.
Delays from Repairs or Permits
- Work with trusted contractors: Hire licensed professionals to avoid complications.
- Stay proactive: Monitor progress and schedule inspections promptly.
- Negotiate extensions: Extend the closing timeline if needed.
- Offer credits: Provide a credit at closing for the buyer to address repairs.
Navigating Post-Inspection with Confidence
As a seller, the inspection process doesn’t have to be daunting. It’s an opportunity to showcase your home’s maintenance and keep the deal on track. By approaching this stage with preparation and a clear plan, you can minimize surprises and confidently move towards closing. Consult your Redfin agent for guidance and support throughout the process.
Quick Seller Checklist
- Schedule a pre-listing inspection to address potential issues proactively.
- Organize receipts, permits, and maintenance records for transparency.
- Make minor cosmetic improvements to enhance the property’s appeal.
- Differentiate between mandatory, common, and negotiable repairs.
- Collaborate with your agent to develop a strategic negotiation approach.
FAQ: What Happens After a Home Inspection for Sellers?
1. How quickly should I respond to the buyer’s inspection requests?
Ideally, respond to buyer requests within 2-5 days to avoid potential cancellations under the inspection contingency.
2. Who is responsible for repairs and costs?
As the seller, you are typically responsible for hiring licensed contractors and covering repair costs before closing. Alternatively, you can negotiate a credit for the buyer to handle repairs post-closing.
3. Are licensed contractors necessary for repairs?
Yes, especially for major repairs. Buyers and lenders often require licensed professionals, and some repairs may necessitate permits and inspections.
4. How to address recurring issues with new buyers after a failed deal?
Disclose unresolved issues to future buyers to prevent repeated negotiations. Addressing problems promptly saves time and preserves the sale price.
5. Can negotiations extend beyond repairs after inspection?
Yes, the inspection period allows for negotiations on repairs, credits, closing dates, and cost-sharing, offering flexibility to save deals without extensive repairs.