Home inspections often reveal issues—big and small—that buyers and sellers must navigate. Negotiating repairs is one of the most delicate stages of a transaction, and it’s important to approach it with strategy, professionalism, and courtesy.
Every situation is different. Sometimes the buyer and seller split costs, sometimes the buyer covers everything, and in other cases the seller agrees to repairs.
Work with your agent to determine which items are reasonable to request from the seller and which should fall under the buyer’s responsibility.
No home is perfect. Break down issues into categories:
Routine maintenance items
Major defects or safety concerns
Issues visible prior to making an offer (may not be negotiable)
Items that affect insurance eligibility or loan approval
Get repair quotes when possible to understand costs.
Be courteous. Sellers may not have known about the issues, and some may be financially stretched.
In many contracts, especially “as-is,” the seller is not obligated to make any repairs.
The buyer, however, retains the right to cancel during the inspection contingency period and typically receive their escrow deposit back.
At Dalton Wade, we recommend asking for a credit in lieu of repairs. This reduces confusion over quality of work and sets clear expectations.
Credits can be applied toward closing costs, prepaids, and other allowable expenses. Always confirm with the lender to ensure the credit won’t exceed allowable limits.
Repair Addendum:
State that repairs must be completed by a licensed professional and require proof of receipts.
Avoid sharing the addendum with the lender unless necessary—doing so may trigger additional inspections and delay closing.
Credit Addendum:
Keep it simple: “Seller to provide a credit in the amount of $___ to Buyer toward allowable closing costs, prepaids, and expenses at closing.”
Confirm credit limits with the lender before finalizing.
Release & Cancellation:
If the buyer elects to cancel based on the inspection contingency, send a Release and Cancellation form.
Clearly state: “Buyer is exercising their right to cancel per the inspection contingency.”
Tracking Deadlines:
Always monitor the inspection contingency date. Missing this date could eliminate the buyer’s right to negotiate or cancel.
Go to your Mid-Transaction Docs folder in Dotloop.
Click Add Document (to the right of the folder name).
Select Templates.
Choose the Common Addenda folder.
Select Addendum to Contract.
(Form names may vary slightly by state!)
It’s the buyer’s choice. Since they paid for the report, they control who sees it.
Best practice is to share only the relevant sections tied to requested repairs or credits.
If the report (or sections of it) is shared, it’s recommended the seller agree in writing that the report is confidential and cannot be shared further without the buyer’s consent.