The home inspection is finished, and now decisions have to be made about who pays for which repairs—just another step in the process of buying a house.
Home sellers will be reluctant to invest more in a property they’re leaving, while home buyers will want to get the house in the best possible condition. Somewhere in the middle, after the appropriate negotiations, is the perfect contract for both parties.
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What Repairs Are Reasonable to Ask a Seller to Fix?
When it comes to repair requests, there really isn’t a "one size fits all" box that all transactions fit into, but there are reasonable things to ask a seller to fix that aren't unexpected. General guidelines exist, but specific details can vary by geographic location.
Health, Safety, and Structural Issues
Situations that have health, safety, structural, or environmental issues, such as mold, bad wiring, cracks in the foundation, or out-of-date building codes, are standard requests of buyers.
Major Home Systems
Buyers and sellers may have differing opinions on who should pay for repairs to major systems, including roofing, HVAC, and water heaters. These items are typically addressed after a home inspection.
Keep in mind that cosmetic or aesthetic improvements and upgrades, such as the house's paint color or synthetic countertops, are not usually considered reasonable repairs.
What Should You Consider Before Requesting Repairs?
Not every inspection finding needs to become a repair request. Before deciding what to ask the seller to fix, consider the inspection results, the housing market, the seller’s motivation, your own priorities, and any financing or insurance requirements.
Home Inspection Findings
Smart buyers will hire a recommended home inspection professional to protect themselves throughout the purchase process. The inspector will note the major issues throughout the home that aren't up to standard and require reconstruction or replacement.
The inspection report can help buyers distinguish between minor maintenance issues and problems that could affect the home’s safety, function, or value. Use the report to prioritize the repairs that matter most rather than presenting the seller with every item the inspector notes.
Current Market Conditions
Of course, if inventory is low and it’s a seller's market, the homeowner will likely be put off by a multitude of requests and wait for another buyer who is interested in buying a home as is. A buyer's market, however, will yield more repair requests, and the seller will have to consider their options seriously.
Seller Motivation
If the homeowner has circumstances that would benefit from a quick sale and the buyer’s offer looks solid, they might be more inclined to fix the items and complete the sale quickly.
Your Deal Breakers
Remember, as the home buyer, you can ask for any improvement, but the risk of annoying the seller to the point of killing the deal increases as your list of requests grows, especially if the market is in their favor.
Be prepared to ask the homeowner for only the items that would be deal breakers. Make sure your home insurance will cover the deficiencies, however. The owner might not agree, but knowing your hard line will make the negotiation process easier.
Loan and Insurance Requirements
Some repairs may not be negotiable if they’re required for financing. (For example, VA, FHA, and USDA loans have minimum property requirements.)
It’s also worth checking with your insurance provider before agreeing to take responsibility for a major defect. Some property conditions may affect whether the home can be insured or the cost of coverage.
After reviewing the home inspection, buyers generally have a few options: ask the seller to make the repairs, negotiate a lower price, or request a credit or closing cost assistance when allowed. Which option makes the most sense depends on the scope of the repairs, your budget, and your timeline.
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Pros and Cons of Seller-Made Repairs
Seller-made repairs can be convenient, especially if you’re on a tight timeline, but you may want to list the pros and cons of choosing between having the seller make repairs or reducing your costs.
Pros of Asking the Seller to Complete Repairs
Meeting VA Loan Safety and Structural Standards
For a VA loan to be approved, the Minimum Property Requirements regarding safety, structure, and pest damage must be met. Lead paint, radon, mold remediation, foundation cracks, and termite infestations are common issues.
So if the seller is interested in going under contract with you, they have to make these corrections. The appraisal process might also reveal fixes needed to push the sale through. Federal Housing Administration and USDA loans also have requirements before they can proceed.
May Make a Tight PCS Timeline Easier
If you’re moving with the military, you have a timeline to meet. Asking the sellers to fix major issues with the HVAC system or other pertinent problems before you move can mitigate the time you live in temporary housing. It's no fun buying a house that you can’t move into because you’re waiting for water damage to be repaired. Knowing the correction process has begun before leaving your current home can alleviate an extra layer of stress.
Remote home buying is also common among military buyers. It's difficult to choose reputable contractors from afar. Asking the sellers with local knowledge to take on the repairs cuts out a lot of research time on your end.
Reduces the Buyer's Repair Responsibilities
Learning how to buy a house for the first time is time-consuming and anxiety-inducing. You may also not have the bandwidth to learn how to find a reputable, licensed, and insured contractor. Asking the seller to manage the home repair projects can reduce your mental load.
If the repairs require permits or code compliance for things such as electrical or plumbing, it can also be a relief to ask the sellers to handle the scheduling and coordination. Sometimes, the repairs include meeting local housing codes to ensure the sale can go through legally.
Buying a home for the first time is a substantial investment, and you might not be entirely comfortable depositing all of your available cash into the purchase. Negotiating repairs and fixes into the purchase agreement can alleviate some of the pressure on your wallet.
Possible Drawbacks of Seller-Made Repairs
You Give Up Some Control Over Your Future Home
This is probably the biggest, most intensive con for allowing the sellers to manage the repair process. They decide the timeframe, budget, and quality control of the property you’re about to move into. If you’re thinking of buying a home as is and handling the repairs yourself, you can ensure the contractors meet your specifications in every way.
You May Give Up Flexibility and Cost Savings Opportunities
Military movers often prize flexibility above all else, thanks to timeline mandates. If the sellers are in charge of handling the home’s repairs, they may not fully take into account when you need to move in. They’re likely prioritizing their budget and planning around what suits their needs.
This means they can schedule the fixes as their schedule allows, which might also include hiring the least expensive contractor. If you choose to make the improvements, you can potentially handle some of the items on your own, saving money and allowing you to focus on the most important jobs upfront while budgeting and planning for future upgrades.
Other Options
A Lower Purchase Price
Instead of asking the seller to complete repairs, you may be able to negotiate a lower purchase price and take care of the work after closing. This gives you more control over the contractors, materials, timing, and scope of the repairs. You may also decide to combine a necessary repair with an upgrade you were already planning.
However, a lower purchase price doesn’t necessarily provide you with cash to pay a contractor immediately. Depending on the size of the reduction and your financing, the change in your monthly mortgage payment may be relatively small. Make sure you’ll have enough money available after closing to complete any repairs you’re taking on.
Repair Credit or Help with Closing Costs
Asking for credit for the work instead of the actual repairs might also be an option to speed up the process. Depending on the transaction and loan requirements, a seller may be able to contribute toward allowable closing costs or provide another negotiated concession instead of completing certain repairs.
Seller concessions and credits can be limited by the loan program, appraisal, contract terms, and lender requirements, so discuss the available options with your real estate agent and lender before deciding how to structure the request.
Key Takeaways
- Focus repair requests on health, safety, structural, and major-system issues rather than cosmetic preferences.
- Consider current market conditions, the seller’s motivation, your deal breakers, and any loan or insurance requirements before negotiating.
- Having the seller make repairs can save time and upfront costs, but you may have less control over the contractor, materials, and quality of the work.
- A lower purchase price, repair credit, or allowable closing cost assistance may be alternatives when you prefer to handle repairs yourself.
- Before agreeing to take on a major repair, make sure you understand the cost and have the funds and time to complete it after closing.
The home buying process is exciting, daunting, and a long list of other emotions! Learning to be an informed home buyer helps you make wise financial decisions, including which repairs you can ask the seller to make before closing day.
