Negotiating after inspection: credits vs repairs vs price drop
How you respond to inspection findings can make or break the deal — and your protection.
Scenario
Brianna is under contract on a $285,000 home. The inspection reveals a failing HVAC system ($6,500 to replace), evidence of past water intrusion in the crawl space, and a list of minor items. Her due diligence period ends in three days. She has three options and needs to pick the right one before the clock runs out.
Request seller repairs
- Seller controls contractor and quality
- Repairs done to close — not to last
- Hard to verify quality before closing
- Can slow the timeline significantly
Request closing cost credit
- You control the contractor and quality
- Cash at closing to fund repairs yourself
- Lender must approve — subject to caps
- Doesn't help if you need cash before move-in
Request price reduction
- Lowers loan amount and monthly payment permanently
- Gives you cash-equivalent benefit over time
- Seller may resist if they feel it undervalues the home
- Best when combined with as-is acceptance
Walk away entirely
- Valid if findings reveal a fundamentally flawed property
- Water intrusion may signal structural issues
- Better to lose the deal than inherit a money pit
- Due diligence period exists for exactly this decision
Things to consider
- Credits are almost always better than seller repairs — you control quality.
- Water intrusion is a red flag that may indicate bigger structural or mold issues — get a specialist in.
- Is this a property worth negotiating on — or are you staying because you're emotionally invested?
- What is the lender's cap on seller credits? Typically 3–6% depending on loan type and LTV.
- Do you have cash available to fund repairs before move-in if the credit doesn't cover it?
BRIK takeaway
Credits beat repairs. You control the contractor, the timeline, and the quality. But before you negotiate anything — decide if the property is still worth owning. The inspection is your last clean exit. Use it to make a real decision, not just to extract a discount on a property you should walk away from.