Seller Not Willing to Negotiate After Inspection? Here's What to Do

When you made an offer on a house, your real estate agent probably insisted that you put in a "contingent upon inspection" clause. 

An inspection contingency allows you to schedule an independent home inspection to reveal any issues with the property that could potentially be deal breakers or otherwise cost you a lot of money in repairs. 

In most cases, a home inspection report can be a useful negotiating tool — allowing as many as 83% of home buyers to ask for concessions, whether a price reduction (31%) or money to cover repairs (29%). 

 But what should you do if the seller won’t budge?

What are your options when the seller won't negotiate?

A whopping 89% of home sellers make some sort of concession during negotiations with buyers, including: 

• Making repairs following negotiations (42%)
• Offering a price reduction (32%)
• Paying for a home warranty (32%)
• Including furniture or appliances in the sale (31%)
• Offering a repair credit. (29%)
• Assisting with closing costs (26%)

The typical price tag for concessions is $7,200 — although that figure is slightly higher among sellers who don't use an agent. 

Given how common it is for negotiations to remain open even after a purchase agreement is signed, most sellers are prepared for some give-and-take going in. However, some sellers refuse to budge — even after the inspection report turns up major issues. 

As you go to the seller with all the issues you want them to fix with the house, remember that this is a place they've spent large amounts of time, energy, and money on and it has emotional value for them. So as a general rule, it's best to keep your list of repair requests to those items that could be potential deal breakers. 

If a seller still refuses to negotiate, it leaves you with three main options:

• Accept the house as is 
• Re-evaluate your position and take another shot at negotiating
• Walk away from the deal

We asked realtors from across the country about the best course of action when dealing with a difficult seller after a home inspection. Read on for their best advice on how to proceed.

Determine reasonable vs. unreasonable requests after an inspection

When deciding what requests to present to the seller, it can be difficult to know what's actually reasonable.

An inspection report that comes back with a lot of problems can be unsettling, but the key here is to keep your emotions in check, according to Alex Coffman, co-owner of Teifke Real Estate in Austin, TX.

“It's crucial to approach the conversation with a level head and a cooperative mindset,” points out Ashley Vincent, a California-based real estate investor. “Remember, both parties want the deal to go through, so work together to find a solution that satisfies everyone involved.”

Keep in mind that if you and the seller reach an impasse, or if you ask for too much, the seller may refuse all your requests in hopes that you’ll walk away from the deal. Consult with your buyer's agent to decide what issues you really want to insist on, and what you’re willing to overlook.

What's a reasonable request following a home inspection?

You don’t want to overpay for a house and then have to spend thousands of dollars making it habitable. Therefore, any serious problems can reasonably make the home inspection repair request list. These include:

Safety issues

Safety issues encompass problems like faulty wiring (which could cause a fire), mold in the basement, elevated radon levels, or the presence of lead paint. It’s reasonable to walk away from the deal if the seller doesn’t address these problems before closing. “Issues like mold, asbestos, or septic tank troubles are deal-breakers,” says Eric Bramlett, of Bramlett Real Estate in Austin, TX.

Livability issues

Livability items include items like toilets that won’t flush, well water that lacks pressure or volume, or roof leaks. If the property already has building violations, the city might not even issue an occupancy permit until these repairs are addressed.

Major systems

Problems with primary home systems like HVAC, roofing, plumbing, or electrical can be incredibility costly to repair and need to be addressed or otherwise negotiated prior to closing.

Other serious issues

Pest infestations like termites, rodents, or bats are serious enough to warrant remediation before the home sale is finalized. Problems with the foundation are also serious enough to be addressed.

What repair requests might be considered unreasonable?

A home inspection’s purpose is primarily to find anything that would cost a large sum of money to repair. Therefore, repair requests after the home inspection shouldn't include every minor defect. 

Less reasonable repair requests include the following:

Cosmetic issues

Sometimes, contracts get specific about cosmetic repairs. They state that a seller won't fix anything cosmetic, only items like structural issues, building code violations, or safety infractions. 

But even if your contract leaves cosmetic fixes on the table, there are reasonable limits to the seller’s responsibility. If you could have identified the repair when you first walked through the home, it’s not a good idea to request the seller fix it after the home inspection. You knew about the outdated kitchen and peeling paint in the bedroom when you made the offer; a seller would reasonably expect that those flaws have already been factored into your offer price.

Renovations

If you’re not buying new construction, it’s reasonable for all parties to assume that the buyers will do some updates and renovations themselves. Even in a strong buyer’s market, it’s not the seller’s responsibility to customize and perfect your dream home— it’s yours. 

Inexpensive repairs

If it would cost less than $100 to fix a problem, don't waste your time asking the seller to fix it. All this kind of nitpicking does is drive up the overall cost of repairs and annoy the seller. Instead, just make a note of the small things you would like fixed and complete the repairs yourself after closing.

External building repairs

If the home has a shed, pool house, clubhouse, or detached garage, it is best to let any issues with them go, especially if you’re buying your home in a competitive market. Just focus on the safety and soundness of the main house when making your requests.

Consider the kind of market you're in

Of course, the definition of “reasonable” and “unreasonable” depends on the context.”The amount of negotiating leverage you have following a home inspection is often determined by the type of market you're in.

Negotiating repairs in a buyer's market

A buyer’s market is one in which homes on the market outnumber buyers, which gives buyers more leverage. 

“When more homes are for sale, buyers can push harder for what they want since sellers want deals,” says Eric Bramlett. Sellers know that if they refuse to play ball, buyers can just go buy a different house.

But even in a buyer's market, realtor Ashley Vincent cautions against getting too demanding. “Just remember to handle these discussions tactfully and be ready to back up your requests with evidence from the inspection report,” says Vincent.

Negotiating repairs in a seller's market

In a seller’s market, you have much less leverage over the seller, since they know they can very likely find another buyer who’ll make fewer or zero demands. That makes negotiating on repairs tough.

“Seller markets require focusing requests on critical concerns,” says Crystal Olenbush of Austin Real Estate. Only ask for repairs that are absolutely necessary, and that you’d walk away from the deal over. 

"And don’t lose sight of the long view,” says Olenbush. Buying a home in a seller’s market takes a lot of luck and compromise, so don’t lose a home over what, in the big picture, are minor problems. 

If you do end up compromising on fixes, don’t feel bad— 85% of recent buyers made some kind of compromise when they bought their home.

Tips for negotiating following a home inspection

Prioritize the major issues

When negotiating, “start with repairs that affect safety or habitability,” says Coffman. 

Some sellers only want to fix things local laws require them to fix, such as code violations, — especially if other buyers won't see it as an issue. 

Once a problem is a known issue, the seller will be required to disclose it to any future buyers. They can no longer claim ignorance. And if the home was already priced correctly, they can’t just increase the sale price to cover the amount.

The buyer’s mortgage lender may not approve a mortgage on a home that needs a major structural or system repair. 

Don't sweat the small stuff

But as a general rule, sellers are reluctant to pay for repairs that another buyer may be willing to overlook. 

“Being flexible on minor issues can prevent the seller from stonewalling during the negotiation,” agrees real estate agent Dennis Shirshikov. In a seller's market — and even in a balanced market, where there are as many buyers as sellers, "buyers might have to compromise more and may need to accept some issues as-is if they are set on purchasing a particular property.”

Ask for repair credits in lieu of having the seller make repairs themselves

When negotiating following a home inspection, you can ask the seller to perform the repairs themselves or to give you a repair credit or price reduction. 

Sellers generally prefer to give repair credits instead of doing repairs, since it doesn’t delay the deal. Many buyers do too, since it allows them to oversee the quality of the repairs, and get in their new home faster. 

However, if the home needs major repairs, you might want the seller to perform fixes just to make the home livable before you move in.

Get estimates for repair costs

Coffman also suggests getting repair estimates so you can use concrete numbers at the negotiating table. 

“Get some figures on big-ticket items so you have a basis for your negotiation,” Coffman says. “This is useful when asking for repair credits or price reductions based on estimated costs to rectify these issues.”

Consider asking the seller for a home warranty

If you decide to buy a home as-is, "consider requesting that the seller provide a home warranty to cover any potential future problems,” advises investor Ashley Vincent. (If the seller refuses, it might make sense to pay for a warranty yourself.) 

Home warranties generally cover one year from the time of purchase and can cost as little as a few hundred dollars. This solution offers protections for you, the buyer, while also keeping costs low for the seller. 

Use the inspection report to your advantage

Other agents advise using the inspection report to subtly tilt the home negotiation process in your favor. 

"Here's a secret realtor trick for negotiating after a home inspection,” says Ryan Fitzgerald, an experienced agent and owner of Raleigh Realty. “Even if the inspection only finds minor issues, have your buyer bring a copy of the full inspection report to the negotiation. While they'll primarily focus on prioritizing major repairs, keeping the full report on the table subtly reminds the seller that your buyer is now knowledgeable about everything mentioned within. This empowers your position without being overly aggressive.”

Lean on your agent

Confer with your agent about what you can reasonably ask for in your market, and what compromises are worth accepting. 

Overstepping in either direction can have serious consequences— asking for too much in a seller’s market can turn the seller against you, and making major compromises on issues like asbestos or mold can have expensive consequences in the future. Your agent will be able to guide you around these risks during your negotiation.

When to walk away after a home inspection

Some sellers are just unreasonable. In other cases, issues may be so large that neither party wants to take on the expense. This is why a standard real estate purchase agreement states that the offer is contingent upon inspection. This gives you the ability to back out of the deal and usually recoup your earnest money.

“In some cases, walking may be wisest to avoid future trouble,” says Olenbush. She points to major problems like mold or asbestos as solid reasons to bail on a deal. These issues can have serious and far-reaching consequences that, in many cases, aren’t worth the risk. 

Ryan Fitzgerald had one recent client go through this. “I had one couple fall in love with a historic home, only for mold to be found throughout,” he says. “We had to have tough talks explaining the health risks and remediation costs. Sometimes walking away is the only choice, no matter the market.”

If the seller does agree to make fixes, make sure they’re done before closing. If the seller didn’t complete the agreed-upon repairs before closing, you have options. “Follow through is key,” says Olenbush. “If work isn't done as promised, delaying close or escrowing funds protects my clients. As a last resort, walking preserves their interests.”

FAQs about negotiating after an inspection

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