Buyer Asking for a Lot of Repairs? Your Guide to Not Losing the Deal
The home inspection report lands in your inbox. Your heart sinks as you scroll through a seemingly endless list of requested repairs from the buyer. It’s a moment that can turn the excitement of an accepted offer into pure panic.
When a buyer is asking for a lot of repairs, it’s easy to feel overwhelmed, offended, or even angry. But before you let emotions take over, take a deep breath. This is a standard, albeit stressful, part of the home-selling journey and, most importantly, it’s a negotiation, not a demand.
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Why Buyers Submit a Long Repair List
Understanding the buyer’s motivation can help you approach the negotiation with a clearer head. A long list of repairs doesn’t always mean they think your home is falling apart or that they are trying to be difficult.
Often, buyers are first-time homeowners and the detailed inspection report, which is designed to find every potential issue, can be intimidating. They may also be using the repair request as a strategic starting point for negotiations. Your goal is to separate the genuine concerns from the tactical maneuvers.
First Steps: Don’t Panic, Strategize
Your immediate reaction sets the tone for the entire negotiation. Resist the urge to immediately refuse all requests. Instead, lean on your real estate agent’s expertise to help you navigate this critical phase.
Together, you can dissect the list and formulate a response that protects your interests while keeping the deal on track. Remember, the buyer has also invested time and money to get to this point and likely wants to find a solution as much as you do.
Categorizing the Chaos: Sorting Repair Requests
The key to managing a long list of repairs is to break it down into manageable categories. Not all repair requests are created equal. By sorting them, you can prioritize what truly needs to be addressed and what is open for discussion.
Work with your agent to group the items into three main buckets: mandatory repairs, reasonable requests, and unreasonable or cosmetic fixes.
1. Mandatory and Lender-Required Repairs
This category includes issues that are non-negotiable. These are typically problems that affect the safety, structural integrity, or habitability of the home. Think of major issues that would prevent a lender from approving a loan.
Common examples include:
- Structural and Foundation Issues: Significant cracks in the foundation or structural damage.
- Safety Hazards: Faulty electrical wiring, radon gas, or the presence of mold.
- Building Code Violations: Unpermitted additions or systems that are not up to local code.
- Major System Failures: A non-functional HVAC system or a roof with active leaks.
These are the types of repairs that a seller is generally expected to handle. Refusing to address these significant problems could kill the deal and will likely need to be disclosed to future buyers.
2. Reasonable and Important Repairs
These are significant issues that impact the home’s functionality or value but aren’t necessarily immediate safety hazards. This is often where the bulk of the negotiation happens.
This category might include:
- A water heater that is nearing the end of its life. If you’re having issues with a tankless water heater producing only lukewarm water, for example, this could be a valid concern.
- Plumbing problems like leaky pipes or slow drains.
- Appliances that are included in the sale but are not in working order.
- Damage from pests, such as termites.
For these items, you have more flexibility. You can agree to fix some, but not all, or explore alternative solutions like offering a credit.
3. Unreasonable and Cosmetic Requests
This group includes minor, aesthetic issues or items related to normal wear and tear. Buyers sometimes include these to see what they can get, but sellers are rarely obligated to fix them.
Examples of unreasonable requests include:
- Minor scuffs on walls or chipped paint.
- Normal wear on flooring or countertops.
- Cosmetic issues like outdated light fixtures or faucet hardware.
- Anything under a certain cost threshold, for example, any repair under $100.
It’s generally advisable to politely decline these requests. Focusing on the more significant issues shows that you are a serious and reasonable seller.
Your Negotiation Playbook: Four Ways to Respond
Once you’ve categorized the requests, you can decide on your negotiation strategy. There are four primary ways to respond to the buyer’s repair addendum. Your real estate agent can provide invaluable advice on which approach is best for your specific situation and market conditions.
Option 1: Agree to All (or Most) Repairs
If the requests are reasonable and the cost is manageable, agreeing to handle the repairs can be the quickest way to move forward. This approach can provide peace of mind to the buyer and keep the closing on schedule.
However, this puts the burden on you to hire contractors and ensure the work is completed to the buyer’s satisfaction before closing. Always use licensed professionals and keep all receipts as proof of completion.
Option 2: Offer a Seller Credit
Instead of making the repairs yourself, you can offer the buyer a credit at closing. This is often the cleanest and most appealing option for both parties. You provide an agreed-upon amount of money, and the buyer can then hire their own contractors to perform the work after they own the home.
This is a highly effective strategy because it removes your liability for the quality of the repairs and saves you the headache of managing the work. It also allows the buyer to control the repairs and make upgrades to their own specifications.
Option 3: Negotiate a Compromise
This is the most common scenario. You can offer to fix the most critical items (like safety or structural issues) while declining the cosmetic requests. You might also offer a partial credit to cover some, but not all, of the requested repairs.
Negotiation is a give-and-take process. By showing flexibility, you can often reach a middle ground that satisfies both you and the buyer, keeping the transaction alive.
Option 4: Refuse All Repairs (The “As-Is” Stance)
In a strong seller’s market, or if the initial offer price already accounted for the home’s condition, you might choose to refuse all repair requests. This is a high-risk strategy that could cause the buyer to walk away.
If you take this route, be prepared for the deal to fall through. Also, remember that any significant issues a buyer uncovers must typically be disclosed to future potential buyers, which could impact your negotiating power down the line.
The Power of Professional Quotes
Before you respond to any request, it’s crucial to get your own estimates for the work. Buyers may sometimes receive inflated quotes. Having one or two independent quotes from licensed contractors gives you a realistic understanding of the costs and strengthens your negotiating position.
Presenting these quotes to the buyer can show that you’re taking their concerns seriously while also grounding the negotiation in factual, market-rate costs.
Sample Negotiation: A Seller’s Response Table
To keep negotiations clear and organized, your agent can create a formal response that addresses each item. Here’s an example of how you might structure your reply to a buyer’s request list:
Buyer’s Repair Request | Seller’s Proposed Action | Notes/Explanation |
---|---|---|
Repair leak under kitchen sink. | Agree to Repair | Seller will hire a licensed plumber to complete the repair before the final walk-through. |
Service the HVAC system. | Offer Credit | Seller offers a $250 credit at closing for the buyer to have the system serviced. |
Replace cracked tile in master bathroom. | Decline to Repair | This is considered a minor cosmetic issue. Seller will not make this repair. |
Repaint the living room. | Decline to Repair | Cosmetic preference. The condition was visible when the offer was made. |
Preparing Your Home to Minimize Repair Requests
The best way to handle repair requests is to minimize them from the start. A pre-listing inspection can help you identify and fix major issues before your home even hits the market. This proactive approach can lead to a smoother transaction and fewer surprises.
Taking care of deferred maintenance, such as ensuring your garage is organized, can also make a positive impression. Learning how to hang power tools on a pegboard is a small project that signals a well-maintained home. Similarly, making small but impactful upgrades, like figuring out how to attach LED strip lights to concrete for patio ambiance, can enhance buyer perception.
What If the Buyer Walks Away?
Despite your best efforts, sometimes negotiations fail and the buyer decides to walk away. While disappointing, it’s not the end of the world. You can put your house back on the market, now armed with the knowledge from the inspection.
You’ll need to work with your agent to understand your legal obligation to disclose the issues found in the inspection report to new potential buyers. Addressing the most significant problems before relisting can make your home more attractive and prevent the same issues from derailing a future sale.
Final Thoughts: Keep Your Eye on the Prize
When a buyer is asking for a lot of repairs, remember that your ultimate goal is to sell your home for the best possible price in a reasonable timeframe. Keep emotions out of the discussion and treat it as a business transaction.
By staying calm, leaning on your agent’s expertise, and being open to reasonable compromise, you can successfully navigate this challenging stage and move forward to a successful closing.