How to Negotiate After a Home Inspection

A complete guide to requesting repairs, credits, or price reductions — without losing the deal

You've found the house, made an offer, and just got your inspection report back. Now comes one of the most important — and most stressful — parts of the home buying process: negotiating based on what the inspector found.

Here's the reality: the inspection almost always reveals issues. Some are minor. Some are deal-breakers. Knowing how to negotiate effectively can save you tens of thousands of dollars — or help you walk away from a money pit before it's too late.

Understanding Your Leverage

Before you ask for anything, you need to understand your negotiating position. It depends on several factors:

• Market conditions — In a seller's market with multiple offers, your leverage is limited. In a buyer's market, you have more room.
• The severity of issues — Safety hazards and structural problems carry more weight than cosmetic issues.
• What the seller already knows — If issues were disclosed upfront, you have less room to renegotiate.
• Time on market — A home that's been listed for 90+ days gives you more leverage than one that just hit the market.

What's Worth Negotiating (And What Isn't)

Not every inspection finding warrants a negotiation. Here's how to prioritize:

High-Priority Issues (Always Negotiate)

• Structural problems — Foundation cracks, settling, load-bearing wall issues
• Roof damage — Active leaks, missing shingles, damaged flashing, end-of-life roofing
• Electrical hazards — Outdated panels, aluminum wiring, code violations
• Plumbing failures — Sewer line issues, polybutylene pipes, active leaks
• HVAC systems — Non-functional or end-of-life heating/cooling
• Water intrusion — Evidence of flooding, poor drainage, basement moisture
• Environmental hazards — Mold, asbestos, radon, lead paint

Medium-Priority Issues (Negotiate Selectively)

• Aging water heater (8+ years old)
• Minor roof repairs needed
• Outdated but functional electrical
• Appliances near end of life
• Deck or porch repairs

Low-Priority Issues (Generally Don't Negotiate)

• Cosmetic issues (paint, carpet, fixtures)
• Normal wear and tear
• Items you knew about before the offer
• Personal preferences (you want different appliances)

Three Ways to Negotiate

When issues are found, you typically have three options:

Option 1: Request Repairs

Ask the seller to fix the issues before closing.

Pros:

• Issues get fixed before you own the property
• You can verify the work was done properly

Cons:

• Seller controls who does the work (they may choose the cheapest contractor)
• Quality of repairs can vary
• Can delay closing

Option 2: Request a Credit

Ask for a credit at closing to cover repair costs.

Pros:

• You control the repairs and choose your own contractors
• You can prioritize what gets fixed and when
• Faster to negotiate

Cons:

• Credit may be limited by lender rules (typically 3-6% of purchase price)
• You're responsible for getting the work done
• Actual costs may exceed the credit

Option 3: Request a Price Reduction

Ask the seller to lower the purchase price.

Pros:

• Reduces your mortgage amount (and interest paid over time)
• No limits like closing credits
• Better for major issues

Cons:

• Doesn't give you cash at closing for repairs
• Sellers may be more resistant (affects their bottom line more directly)

How to Calculate Your Ask

Your negotiation should be based on actual costs, not guesses. Here's a framework:

Writing Your Repair Request

Your request should be professional, specific, and reasonable. Here's a template:

What to Do If They Say No

Sellers can reject your requests entirely, accept them fully, or counter-offer. If they push back:

• Prioritize ruthlessly — Pick the 1-2 most important items and let the rest go
• Meet in the middle — If you asked for $15,000, accept $10,000
• Split the difference — "Let's each cover half of the roof cost"
• Get creative — Maybe they'll leave appliances, pay for a home warranty, or cover closing costs instead

When to Walk Away

Sometimes the right negotiation outcome is no deal at all. Consider walking away if:

• Major structural issues exist and seller won't budge
• Total repair costs exceed 10-15% of purchase price
• Inspection reveals issues the seller clearly tried to hide
• The property needs more work than you can handle financially or emotionally
• Your gut says something is wrong

Remember: walking away during the inspection contingency period typically means you get your earnest money back. It's much better than discovering $80,000 in foundation problems after you've closed.

Common Mistakes to Avoid

1. Asking for everything — A 47-item repair list makes you look unreasonable
2. No documentation — Always reference specific inspection findings and get contractor quotes
3. Being emotional — This is a business negotiation, keep it professional
4. Waiting too long — You typically have 5-10 days to respond, don't miss deadlines
5. Ignoring disclosed issues — If it was in the seller's disclosure, you knew about it when you made your offer

The Bottom Line

Negotiating after a home inspection is about protecting yourself from unexpected costs while keeping the deal on track. Focus on legitimate safety and structural concerns, come prepared with documentation and quotes, and be willing to compromise.

The goal isn't to "win" the negotiation — it's to make sure you're paying a fair price for what you're actually getting.