Negotiating After the Home Inspection: What to Ask For, How to Negotiate & When to Walk Away (2026)

<nav className="cluster-nav"> **📚 Part of the [Making Offers](/blog/making-offers) Series**

This guide is part of our comprehensive series on making smart offers on homes. Learn how to navigate the inspection negotiation process to protect your investment.

Complete Making Offers Series:

1. •How to Make an Offer on a House: Step-by-Step Guide ← Main Guide
2. •How Much Should I Offer on a House?
3. •Should I Offer Asking Price?
4. •How to Make a Strong Offer
5. •Negotiating After Inspection ← You are here
6. •Calculate Fair Market Value
7. •Earnest Money: How Much to Offer

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The home inspection came back. Now what?

If you're like most buyers, the inspection report revealed issues you didn't expect. Maybe the roof needs work. Maybe the HVAC is on its last legs. Maybe there's evidence of past water damage.

Now comes one of the most critical negotiations in the home buying process: asking the seller to address these issues.

This negotiation can save you thousands of dollars—or cost you the house if handled poorly. Here's exactly how to navigate it.

Understanding Your Position

Before you make any requests, you need to understand your leverage.

Your Leverage Depends On:

Market conditions:

• •Hot seller's market = low buyer leverage
• •Balanced market = moderate leverage
• •Buyer's market = high buyer leverage

Property desirability:

• •Multiple backup offers = low leverage
• •Only offer on table = high leverage
• •Property sitting for months = very high leverage

Inspection findings:

• •Minor cosmetic issues = low leverage
• •Major safety/structural issues = high leverage
• •Issues that affect financing/appraisal = very high leverage

Your contract terms:

• •Waived inspection contingency = no leverage
• •Inspection contingency = full leverage
• •"For information only" inspection = limited leverage

The Fundamental Rule

You can ask for anything. But what you'll GET depends on your leverage and the reasonableness of your requests.

What to Ask For: The Framework

Not all inspection findings warrant the same response. Here's how to categorize issues and decide what to request.

Tier 1: Safety and Structural Issues (Always Request)

Examples:

• •Electrical hazards
• •Structural damage
• •Roof leaks or failure
• •Foundation issues
• •HVAC system failure
• •Plumbing emergencies
• •Mold or water damage
• •Radon above safe levels
• •Fire/safety code violations

Why these matter:

• •Affect habitability
• •Create safety risks
• •Often required by lenders
• •May prevent closing
• •Could cost $5,000-$100,000+ to fix

What to request:

• •Full repair by licensed contractor
• •OR price reduction equal to repair cost
• •OR closing cost credit
• •PLUS re-inspection to verify completion

Seller response likelihood: High (these must be addressed for most sales to proceed)

Tier 2: Major Systems Nearing End of Life (Usually Request)

Examples:

• •HVAC system 15+ years old but working
• •Roof with 5-10 years remaining
• •Water heater near end of expected life
• •Old electrical panel (works but outdated)
• •Aging appliances (dishwasher, range, etc.)

Why these matter:

• •Will need replacement soon (1-5 years)
• •Predictable upcoming expense
• •Not emergency, but significant cost

What to request:

• •Credit toward replacement cost
• •OR partial price reduction
• •OR home warranty covering these items
• •OR pro-rated reduction based on remaining life

Seller response likelihood: Moderate (depends on market and competition)

Tier 3: Deferred Maintenance (Sometimes Request)

Examples:

• •Worn carpet/flooring
• •Dated fixtures
• •Peeling paint
• •Minor plumbing leaks
• •Clogged gutters
• •Cracked driveway

Why these matter:

• •Affect value and livability
• •Not urgent but add up
• •You'll need to address eventually

What to request:

• •Closing cost credit (usually modest)
• •OR selective repairs for largest items
• •OR bundle into broader negotiation

Seller response likelihood: Low to moderate (often seller won't budge)

Tier 4: Cosmetic Issues (Rarely Request)

Examples:

• •Outdated decor
• •Color preferences
• •Minor scratches/dings
• •Landscaping preferences
• •Storage organization

Why these matter:

• •They don't (for negotiation purposes)
• •You saw these before making offer
• •Purely aesthetic

What to request:

• •Usually nothing
• •These aren't inspection negotiation items

Seller response likelihood: Very low (don't waste leverage here)

Three Negotiation Strategies

Based on your leverage and the inspection findings, choose one of these approaches:

Strategy 1: Request Repairs

Best for:

• •Major safety/structural issues
• •Items that affect financing
• •When you have strong leverage
• •Seller's market where you need to be reasonable

How it works:

1. •Identify specific issues from inspection
2. •Get repair estimates from contractors
3. •Request seller repair by licensed professional
4. •Include requirement for re-inspection

Sample request: "Based on the inspection, we request the following repairs by licensed contractors prior to closing:

1. •Repair roof leak over master bedroom (Est. $2,500)
2. •Replace faulty electrical panel (Est. $3,000)
3. •Remediate mold in basement (Est. $4,500)

Total estimated cost: $10,000

We will require re-inspection to verify completion before closing."

Pros:

• •Issues fixed before you move in
• •Professional repairs with warranties
• •Peace of mind

Cons:

• •Seller chooses contractors (may be cheapest option)
• •Quality may vary
• •Timeline delays possible
• •Still need to verify work

Strategy 2: Request Price Reduction

Best for:

• •Buyer's market with leverage
• •Multiple issues to address
• •When you want control over repairs
• •Seller doesn't want hassle of coordinating repairs

How it works:

1. •Get repair estimates from contractors
2. •Request price reduction equal to repair costs
3. •You handle repairs after closing

Sample request: "Based on the inspection findings and contractor estimates, we request a $10,000 reduction in purchase price. We will address all necessary repairs ourselves after closing.

This allows you to close without coordinating repairs, and gives us control over contractor selection and quality."

Pros:

• •You control repairs and quality
• •Choose your own contractors
• •Can prioritize repairs as needed
• •Faster closing (no waiting for repairs)

Cons:

• •You need cash to make repairs
• •Repairs become your responsibility
• •Need to coordinate after move-in

Strategy 3: Request Closing Cost Credit

Best for:

• •When you're cash-tight
• •Multiple medium-priority issues
• •Seller prefers not to reduce price
• •Lender allows seller credits

How it works:

1. •Calculate total repair costs
2. •Request seller pay toward your closing costs
3. •Reduces cash you need at closing
4. •Purchase price stays same

Sample request: "We request a $10,000 seller credit toward closing costs to address inspection findings. This maintains the purchase price (important for your equity/appraisal) while helping us address necessary repairs."

Pros:

• •Reduces cash needed at closing
• •Purchase price unchanged (helps seller's equity)
• •Often easier for sellers to agree to
• •Can use toward different closing costs

Cons:

• •Limited by lender guidelines (typically 3-6% max)
• •Doesn't help if you're already getting max seller credits
• •Still need to make repairs yourself

The Negotiation Process: Step by Step

Step 1: Review Inspection Report Carefully (Day 1)

What to do:

• •Read entire report thoroughly
• •Highlight all issues mentioned
• •Note inspector's urgency level for each
• •Take photos of major issues during walkthrough

Categories to create:

• •Must fix (safety/structural)
• •Should fix (major systems)
• •Nice to fix (deferred maintenance)
• •Cosmetic (ignore for now)

Step 2: Get Contractor Estimates (Days 2-5)

For major issues, get quotes from:

• •Licensed contractors in relevant trades
• •At least 2-3 estimates per major issue
• •Written estimates with scope of work
• •Timeline for completion

Why this matters:

• •Validates inspector's findings
• •Provides concrete numbers
• •Shows seller you're serious
• •Strengthens your negotiating position

Pro tip: Some contractors offer free estimates for inspection follow-ups. Call and explain you're in due diligence period.

Step 3: Determine Your Strategy (Day 5-6)

Based on:

• •Market conditions (your leverage)
• •Severity of issues
• •Your cash situation
• •Seller's likely response

Decision framework:

Ask yourself:

• •

  "If seller says no to everything, do I still want the house?"

  • •Yes = You have weak leverage, be reasonable
  • •No = You have strong leverage, can be firm
• •

  "What issues genuinely concern me?"

  • •Focus on these, let others go
• •

  "What's my walkaway point?"

  • •Know this before negotiating

Step 4: Make Your Request (Day 7)

Format your request professionally:

Template:

Inspection Response - [Property Address]

Dear [Seller Name],

We've completed our inspection of the property and received the report. We appreciate the opportunity to review the condition of the home.

Overall, we're excited about the property and want to move forward. However, the inspection revealed several items that need to be addressed:

MAJOR CONCERNS (Must be addressed):
1. [Issue] - Estimated cost: $X - Request: [Repair/Credit/Reduction]
2. [Issue] - Estimated cost: $X - Request: [Repair/Credit/Reduction]

SECONDARY CONCERNS (Request consideration):
3. [Issue] - Estimated cost: $X - Request: [Credit/Reduction]

Total estimated cost: $X,XXX

We propose [Chosen Strategy]:
[Specific request with numbers and timeline]

We believe this is reasonable given [market conditions/severity of issues/comparable sales]. We're committed to closing on schedule once these items are addressed.

We look forward to your response by [Date - typically 2-3 days].

Thank you,
[Your Name]

Key elements:

• •Professional tone
• •Specific issues cited
• •Concrete numbers
• •Clear request
• •Positive intent to close
• •Deadline for response

Step 5: Negotiate the Response (Days 8-10)

Seller may respond with:

Option A: "Yes, we'll do everything you asked"

• •Great! Get it in writing
• •Verify contractors licensed
• •Schedule re-inspection
• •Update contract

Option B: "We'll do some things, not others"

• •Review what they're agreeing to
• •Decide if acceptable
• •Counter-offer if needed
• •Focus on must-haves

Option C: "No, we won't do anything"

• •Assess your options
• •Can you live with issues?
• •Is price still fair given issues?
• •Should you walk away?

Step 6: Reach Agreement or Walk (Day 10-12)

If agreement reached:

• •Get everything in writing
• •Update contract addendum
• •Schedule repairs (if seller repairing)
• •Plan re-inspection
• •Continue to closing

If no agreement:

• •Exercise inspection contingency
• •Get earnest money back
• •Move on to next property

What's Reasonable to Request?

The "Reasonable Request" Test

Ask yourself:

1. •Would this issue affect most buyers? (Yes = reasonable)
2. •Is it a safety or structural concern? (Yes = very reasonable)
3. •Does it affect financing/appraisal? (Yes = necessary to close)
4. •Is the cost significant relative to purchase price? (>1% = reasonable)
5. •Could you have seen this before making your offer? (No = more reasonable)

Examples by Market Type

Hot Seller's Market:

• •✅ Request: Major structural, safety, or code violations
• •✅ Request: Items affecting financing
• •❌ Don't request: Cosmetic items, minor repairs, aging but functional systems

Balanced Market:

• •✅ Request: All safety/structural issues
• •✅ Request: Major systems failures
• •✅ Request: Significant deferred maintenance (bundled)
• •⚠️ Maybe request: Credits for end-of-life systems

Buyer's Market:

• •✅ Request: Everything significant
• •✅ Request: Price reduction for multiple issues
• •✅ Request: Credits for future replacements
• •✅ Request: Even moderate deferred maintenance

Common Negotiation Mistakes

Mistake #1: Asking for Everything

The problem:

• •Long list of minor items
• •Includes cosmetic issues
• •No prioritization
• •Appears unreasonable

Why it fails:

• •Seller sees you as difficult
• •Weakens leverage on important items
• •May refuse to negotiate at all

The fix:

• •Focus on top 3-5 legitimate issues
• •Ignore cosmetic items
• •Bundle small items into credit request
• •Show reasonableness on minor items

Mistake #2: Not Getting Estimates

The problem:

• •Request repairs without cost data
• •Use inspector's rough estimates only
• •No backup for numbers

Why it fails:

• •Seller doesn't take you seriously
• •Can't counter your vague requests
• •Looks like you're guessing

The fix:

• •Get real contractor quotes
• •Provide documentation
• •Show you've done homework
• •Strengthens your position

Mistake #3: Being Too Aggressive

The problem:

• •Demand everything be fixed
• •Ultimatum approach
• •Threatening to walk over minor issues

Why it fails:

• •Damages relationship
• •Seller may refuse to negotiate
• •Can lose a good property

The fix:

• •Professional, collaborative tone
• •"We'd like to work together to address..."
• •Show willingness to be reasonable
• •Save ultimatums for deal-breakers

Mistake #4: Being Too Passive

The problem:

• •Accept everything "as-is"
• •Don't request anything significant
• •Fear of rocking the boat

Why it fails:

• •Leave thousands on the table
• •Stuck with expensive repairs
• •Regret after closing

The fix:

• •Know your rights under inspection contingency
• •It's normal to request repairs
• •Focus on legitimate issues
• •Don't feel guilty asking

Mistake #5: Focusing on Wrong Items

The problem:

• •Request seller fix cosmetic items
• •Ignore major structural issues
• •Waste leverage on minor things

Why it fails:

• •Seller says no to everything
• •Miss opportunity to address serious issues

The fix:

• •Prioritize safety and structural
• •Let cosmetic items go
• •Focus leverage on what matters

Special Situations

When Seller Says "Sold As-Is"

What this means:

• •Seller won't make repairs
• •Price should reflect condition
• •You can still get inspection
• •Can still negotiate price

Your options:

1. •Request price reduction instead of repairs
2. •Walk away if issues too severe
3. •Accept if price already reflects condition

Important: "As-is" doesn't mean you can't negotiate. It means seller won't do repairs, but they might reduce price.

When You Waived Inspection Contingency

What this means:

• •You can't walk away over inspection findings
• •Can still get inspection "for information"
• •Can't force seller to address issues
• •Earnest money at risk if you back out

Your options:

1. •Request repairs anyway (seller may agree)
2. •Negotiate in good faith
3. •Accept issues or lose earnest money

Why you're stuck: You gave up leverage in your offer. This is why waiving inspection is risky.

When Issues Affect Appraisal/Financing

Critical issues that lenders care about:

• •Roof damage/leaks
• •Foundation problems
• •Major electrical/plumbing issues
• •Health/safety hazards
• •Missing smoke detectors
• •Peeling lead paint (pre-1978 homes)

What happens:

• •Lender may require repairs before funding
• •Appraisal may come in low
• •Deal may fall through if not addressed

Your leverage:

• •Seller MUST address or deal dies
• •You have maximum leverage here
• •Seller typically agrees to fix

When You Want to Walk Away

Valid reasons to exercise inspection contingency:

• •Major undisclosed issues discovered
• •Repair costs exceed your budget
• •Issues affect your ability to get financing
• •You're no longer comfortable with property

How to walk away professionally:

Dear [Seller],

After careful review of the inspection report and contractor estimates, we've determined that the cost and extent of necessary repairs exceeds our budget for this property.

We are exercising our inspection contingency and withdrawing our offer. Please return our earnest money deposit of $X,XXX per the contract terms.

We appreciate your time and wish you the best in selling the property.

Sincerely,
[Your name]

Your rights:

• •Keep earnest money (if within contingency period)
• •No penalty for walking
• •Clean break from contract

Real-World Negotiation Examples

Example 1: Hot Market, Multiple Offers

Situation:

• •Seller's market
• •Backup offers exist
• •Inspection finds $15,000 in issues

Issues found:

• •Roof needs replacement ($8,000)
• •HVAC 18 years old ($6,000 to replace)
• •Minor electrical issues ($1,000)

Buyer's leverage: Low

Smart strategy: "We request the roof be repaired before closing ($8,000). We'll accept the aging HVAC and handle the minor electrical ourselves. We believe this is reasonable given the roof affects insurability and financing."

Why this works:

• •Focuses on must-fix item
• •Shows reasonableness
• •Addresses financing concern
• •Likely to be accepted

Example 2: Balanced Market

Situation:

• •Balanced market
• •Property on market 30 days
• •Inspection finds $20,000 in issues

Issues found:

• •Foundation crack ($10,000)
• •Water heater at end of life ($1,500)
• •Deck needs repairs ($3,500)
• •Various deferred maintenance ($5,000)

Buyer's leverage: Moderate

Smart strategy: "We request:

1. •Foundation crack repaired by structural engineer ($10,000)
2. •Water heater replaced ($1,500)
3. •$5,000 credit for deck and other maintenance

Total: $16,500

This addresses critical structural issues and gives us budget for other improvements."

Why this works:

• •Prioritizes structural issue
• •Compromises on other items
• •Shows willingness to meet halfway
• •Professional presentation

Example 3: Buyer's Market

Situation:

• •Buyer's market
• •Property on market 90 days
• •Inspection finds $25,000 in issues

Issues found:

• •Roof replacement needed ($12,000)
• •HVAC replacement needed ($8,000)
• •Electrical panel upgrade ($3,000)
• •Plumbing repairs ($2,000)

Buyer's leverage: High

Smart strategy: "Based on the inspection, we request a $25,000 price reduction. We'll handle all repairs after closing. This allows you to close quickly without coordinating multiple contractors.

Alternatively, we're willing to accept $20,000 in closing cost credits if you prefer to maintain the purchase price."

Why this works:

• •Uses leverage appropriately
• •Offers seller options
• •Shows flexibility
• •Justified by contractor estimates

The Re-Inspection

If seller agrees to make repairs, always do a re-inspection.

What to Re-Inspect

Critical items:

• •Any repairs seller agreed to make
• •Work was completed by licensed contractors
• •Permits pulled if required
• •Quality of workmanship acceptable
• •No new issues created by repairs

How to Handle Re-Inspection

Timing:

• •Schedule 1-3 days before closing
• •After seller notifies you repairs complete
• •Allows time to address issues if found

Who should attend:

• •You (or your agent)
• •Original inspector (or specialist)
• •Contractor who did work (optional)

What to verify:

• •Work matches what was agreed
• •Completed professionally
• •Warranties provided
• •Receipts for materials/labor

If issues remain:

• •Document with photos
• •Request additional repairs or credit
• •May delay closing until resolved

Final Tips for Successful Negotiation

1. Stay Professional

Do:

• •Communicate respectfully
• •Focus on facts, not emotions
• •Use data to support requests
• •Show willingness to be reasonable

Don't:

• •Make personal attacks
• •Issue ultimatums unless serious
• •Exaggerate issues
• •Be overly demanding

2. Know When to Hold, When to Fold

Hold firm on:

• •Safety issues
• •Structural problems
• •Items affecting financing
• •Your deal-breakers

Be flexible on:

• •Cosmetic items
• •Minor repairs you can DIY
• •Timing of repairs
• •How issues are addressed (repair vs. credit)

3. Document Everything

Get in writing:

• •All agreed repairs
• •Who's doing the work
• •Timeline for completion
• •Cost breakdowns
• •Warranty information
• •Re-inspection requirements

Why this matters:

• •Prevents misunderstandings
• •Creates legal record
• •Protects your interests
• •Required for contract addendum

4. Maintain Perspective

Remember:

• •No house is perfect
• •Minor issues are normal
• •Focus on big picture
• •Don't lose a good house over small items

But also:

• •Don't ignore red flags
• •Major issues deserve attention
• •It's okay to walk away
• •Trust your gut

Using Data to Strengthen Your Position

The strongest negotiating position is backed by data.

What strengthens your requests:

• •Contractor estimates (not just inspector's guesses)
• •Photos of issues
• •Comparable sales showing condition premiums
• •Lender requirements documentation
• •Code violation citations

How OfferGuide helps:

• •Compare property condition to recent sales
• •Understand if price reflects condition
• •Calculate appropriate price adjustments
• •Data-driven negotiation strategy

Why this matters:

• •Sellers take you seriously
• •Justifies your requests
• •Harder to refuse factual data
• •Increases likelihood of agreement

Conclusion: The Win-Win Approach

The best inspection negotiations end with both parties feeling they got a fair deal.

For you:

• •Major issues addressed
• •Price reflects true condition
• •Protected from expensive surprises
• •Confident moving forward

For seller:

• •Reasonable requests agreed to
• •Deal stays together
• •Closes on schedule
• •Fair treatment

The goal isn't to "win" the negotiation. It's to:

• •Protect your investment
• •Address legitimate concerns
• •Reach fair agreement
• •Close on a home you'll love

Remember: If both sides feel they gave up too much, you probably reached a fair compromise.

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Related Articles

Making Offers:

• •How to Make an Offer on a House: Complete Guide
• •How to Make a Strong Offer
• •Earnest Money Strategy

Competitive Situations:

• •How to Win a Bidding War
• •Should I Waive Inspection Contingency?
• •Appraisal Gap Coverage Explained

When Things Go Wrong:

• •Appraisal Came in Low: What to Do
• •When to Walk Away

Getting Started:

• •First-Time Home Buyer Guide
• •Calculate Fair Market Value