The home inspection report just arrived, and it's 40 pages long. Panic sets in. Every house, even new construction, has flaws. The key to surviving the inspection phase is separating the terrifying-sounding but cheap fixes from the quiet, catastrophic structural issues. You must learn to negotiate rationally, not emotionally.
Categorizing the Flaws: Safety, Structural, Cosmetic
Not all repairs are created equal. A missing GFCI outlet in the kitchen is a safety issue, but it costs $20 to fix. A slightly uneven floor might be cosmetic settling, or it might be a $15,000 foundation failure. Focus your negotiation entirely on safety hazards (electrical, radon, mold) and major structural/system failures (roof, HVAC, foundation, sewer). Ignore cosmetic issues like peeling paint or old carpets.
Best Practice
The 'Used Car' Rule
You are buying a used house. You cannot expect the seller to deliver a brand-new, flawless product. Negotiate the engine and the brakes, not the floor mats.
The $2,000 Dilemma: Credit vs. Repair
If the HVAC needs $2,000 in repairs, you have three options: ask the seller to fix it, ask for a $2,000 credit at closing, or walk away. Always ask for the credit. If the seller fixes it, they will hire the cheapest contractor available. If you take the credit, you control the quality of the repair after you move in.
$2,000
Key Figure
If the HVAC needs $2,000 in repairs, you have three options: ask the seller to fix it, ask for a $2,000 credit at closin
When to Actually Walk Away
Walk away when the seller refuses to address major safety or structural issues, or when the sheer volume of deferred maintenance indicates the house was neglected for decades. If a $2,000 repair breaks your budget, you shouldn't be buying the house; your emergency fund is too small.
$2,000
Key Figure
If a $2,000 repair breaks your budget, you shouldn't be buying the house; your emergency fund is too small.