You've accepted an offer on your home, escrow is underway, and everything seems to be moving toward a successful closing. Then, after the buyer completes their home inspection, you receive a request for repairs.
Maybe the inspector discovered a plumbing leak, an aging roof, or an electrical issue. Or perhaps the buyer is requesting several smaller repairs throughout the property.
Naturally, you might wonder: Am I required to fix everything the buyer asks for? Can I say no? And what happens if we can't agree?
The good news is that California home sellers generally have several options when responding to buyer repair requests.
Understanding how these negotiations work can help you protect your interests, avoid unnecessary expenses, and keep your home sale moving forward.
What Are Buyer Repair Requests?
A buyer repair request is a formal request made by a homebuyer asking the seller to address certain property conditions, typically following a home inspection.
During escrow, buyers often hire a professional home inspector to evaluate the property's condition. Depending on the property and the findings, additional inspections may be recommended.
These inspections can identify issues involving:
- Roofing and potential water intrusion
- Plumbing leaks or drainage problems
- Electrical systems and safety concerns
- Heating, ventilation, and air conditioning (HVAC)
- Foundations and structural components
- Termite damage and other wood-destroying pests
- Windows, doors, and appliances
- General maintenance or deferred repairs
Once inspections are complete, the buyer may ask the seller to address certain findings before closing.
However, an inspection report identifying a problem does not automatically mean the seller is responsible for fixing it.
According to the California Department of Real Estate, home inspections provide buyers with an opportunity to evaluate a property's condition, and necessary repairs may be negotiated with the seller.
Are Sellers Required to Make Repairs in California?
In most cases, California sellers are not automatically required to complete repairs simply because a buyer requests them.
The seller's obligations depend on the purchase agreement, any negotiated terms, applicable laws, and the specific circumstances of the transaction.
California homes are commonly sold in their existing, or "as-is," condition. This generally means the seller is not promising to make additional repairs unless otherwise agreed.
However, selling a home as-is does not mean a seller can avoid required property disclosures.
California law generally requires sellers of qualifying residential properties to disclose known material defects and certain other information that could affect the property's value or desirability.
For example, if a seller knows that the roof leaks, the seller cannot simply rely on an as-is sale to conceal that information.
It is important to distinguish between two separate responsibilities:
- Disclosing a known problem: Sellers generally have legal obligations to disclose certain known property conditions.
- Paying to fix that problem: Whether the seller must make repairs depends on contractual obligations, applicable law, and the terms negotiated between the parties.
Four Ways Sellers Can Respond to Repair Requests
Receiving a lengthy repair request does not mean you have to agree to everything.
Here are four potential approaches.
1. Agree to Complete the Requested Repairs
A seller may choose to complete some or all of the requested repairs before closing.
This can make sense when the repairs are relatively inexpensive, straightforward, or important to keeping the transaction on schedule.
For example, if the buyer requests repairs to a leaking faucet or a malfunctioning outlet, the seller may decide that completing the work is the simplest solution.
Before agreeing, consider obtaining contractor estimates and establishing the scope of work, completion deadline, and any documentation required under the agreement.
2. Offer a Seller Credit
Instead of performing the repairs, a seller may offer a credit toward the buyer's allowable closing costs.
For example, suppose an inspection identifies an HVAC issue and the buyer requests a $3,000 credit.
Rather than coordinating repairs, the seller might agree to provide that credit through escrow, allowing the buyer to address the issue after closing.
This approach can offer flexibility, but it is important to understand that seller credits are subject to the buyer's loan program, lender approval, and applicable limits.
For conventional loans subject to Fannie Mae requirements, seller contributions generally cannot be used toward the buyer's down payment.
3. Negotiate a Lower Purchase Price
Another option is to negotiate a reduction in the purchase price.
Suppose a home is under contract for $900,000 and a significant plumbing issue is discovered.
Instead of completing the repair, the seller and buyer might agree to reduce the purchase price to $895,000.
The buyer can then arrange for the repairs after purchasing the property.
Keep in mind that a $5,000 price reduction is not necessarily the same as giving a buyer $5,000 in cash to complete repairs. The actual financial effect depends on the buyer's financing and down payment.
Any price adjustment should also be communicated to the lender and documented appropriately.
4. Decline the Repair Request
Sellers may also decide not to make the requested repairs or provide a credit.
For instance, a buyer might request that an older but functioning appliance be replaced simply because of its age.
The seller may reasonably decide not to replace an item that is functioning as expected.
However, refusing a repair request can carry risks.
If the buyer has an applicable inspection contingency, they may have the contractual ability to cancel the transaction under the terms of the agreement.
This is why repair requests should be evaluated strategically rather than automatically accepted or rejected.
What Happens If the Buyer and Seller Cannot Agree?
One of the biggest concerns sellers have during escrow is whether a repair disagreement could cause the sale to fall apart.
The answer depends largely on the contract and the status of the buyer's contingencies.
If the buyer still has a valid inspection contingency, the buyer may have the option to cancel the purchase agreement under its terms.
If the buyer has already removed the applicable contingency, the buyer's rights and potential consequences of refusing to close may be different.
A repair request does not automatically extend an inspection contingency deadline or give the buyer unlimited time to negotiate.
It's important to review the actual contract deadlines, any signed contingency removals, and other applicable provisions before deciding how to respond.
In some situations, a seller may determine that a reasonable concession is preferable to starting over with a new buyer.
That decision depends on several factors, including the repair costs, market conditions, the strength of the existing offer, and the seller's timeline.
Which Repair Requests Should Sellers Take Most Seriously?
Not every inspection finding carries the same significance.
For example, chipped paint or a loose cabinet handle is very different from significant foundation damage or a roof leak.
As a practical matter, sellers may want to give particular attention to problems involving:
- Health and safety: Electrical hazards, significant water intrusion, structural instability, or other safety concerns.
- Major systems: Roofing, plumbing, electrical, heating, and cooling systems that may require substantial repairs.
- Financing requirements: Certain property conditions may need to be corrected to satisfy the buyer's lender or loan program.
- Potential future disclosure issues: If an inspection reveals a previously unknown material defect, the seller may need to consider disclosure obligations if the current transaction does not close.
Smaller cosmetic issues and routine maintenance may warrant a different negotiating approach.
The key is to evaluate the seriousness of the issue, the documentation provided, and the impact on the transaction rather than treating every item on the inspection report equally.
Should You Make Repairs Before Listing Your Home?
One way to reduce potential repair negotiations is to address certain maintenance issues before putting your home on the market.
That doesn't necessarily mean completing a major renovation.
Simple preparation may include:
- Repairing known plumbing leaks
- Fixing broken fixtures and damaged hardware
- Servicing the HVAC system
- Addressing obvious electrical concerns with a qualified professional
- Repairing visible water damage and investigating its cause
- Resolving pest or termite issues when appropriate
Some sellers may also consider a pre-listing home inspection to better understand the property's condition.
However, a pre-listing inspection can uncover issues that require additional evaluation or disclosure. It's important to discuss the benefits and implications with your real estate professional.
Preparing your home in advance may help reduce unexpected negotiations, but it cannot guarantee that the buyer's inspection will reveal no additional issues.
Example: How a Repair Negotiation Might Work
Imagine you're selling your Orange County home for $950,000.
The buyer completes a home inspection and identifies several issues.
- Plumbing repair: about $800
- Electrical corrections: about $1,200
- HVAC repair: about $2,000
- Total: about $4,000
These are hypothetical costs for illustration, not contractor estimates.
The buyer requests that the seller complete all three repairs before closing.
After reviewing the inspection report and discussing the findings, the seller might consider several options.
- Option A: Agree to complete all $4,000 in repairs.
- Option B: Offer a $2,500 credit toward allowable closing costs, subject to lender approval.
- Option C: Agree to the electrical and plumbing repairs but decline the HVAC request.
- Option D: Decline all requests and proceed based on the existing purchase agreement, recognizing that the buyer may have applicable contingency rights.
There isn't necessarily one correct response.
For some sellers, completing the repairs may be the easiest way to preserve the transaction. Others may prefer negotiating a credit or limiting the work they agree to perform.
The most practical decision depends on the property's condition, contract terms, financing, and the priorities of both parties.
Frequently Asked Questions About Buyer Repair Requests
Can a buyer ask for repairs after an inspection?
Yes. Buyers can request repairs, credits, or other concessions after inspecting a property. However, the seller is not automatically obligated to agree.
Can a seller refuse to make repairs?
Generally, yes, unless the seller has an applicable contractual or legal obligation to complete them. However, rejecting a request may affect the transaction if the buyer has remaining contingency or cancellation rights.
Is a seller credit better than completing repairs?
It depends. Credits may be more convenient when buyers want to hire their own contractors, but credits are subject to lender limits and may not be permitted for every situation. Some property defects may also need to be corrected before financing can be approved.
Can a buyer cancel escrow over inspection findings?
Potentially. If the buyer has an applicable inspection contingency and follows the contract's cancellation requirements, the buyer may be able to cancel. The result is more complicated after a contingency has been removed.
Does selling a home as-is prevent repair negotiations?
No. An as-is sale generally establishes the property's existing-condition terms, but buyers may still investigate the property and request negotiated changes. Sellers also remain responsible for applicable disclosures.
Final Thoughts: Repair Requests Are a Negotiation, Not an Automatic Obligation
Buyer repair requests are a common part of the California home-selling process.
While a buyer may request that you fix a long list of items, that does not mean you are automatically required to complete every repair.
As a seller, you may be able to negotiate repairs, offer an appropriate credit, adjust the purchase price, or decline the request, depending on your agreement and circumstances.
The most important thing is to understand your contractual obligations, assess the significance of the repairs, and evaluate how your response could affect the transaction.
Sometimes spending a small amount on repairs can help preserve an otherwise favorable sale. Other times, declining an unreasonable request may make more sense.
Selling a Home in Orange County, California?
Whether you're preparing to list your property or you're already navigating escrow, having a clear strategy can help you make informed decisions throughout the process.
I'm Katherine Brough, a real estate agent with Seven Gables Real Estate, helping buyers and sellers throughout Orange County, including Costa Mesa, Huntington Beach, Irvine, Newport Beach, Santa Ana, Tustin, and surrounding communities.
If you're thinking about selling your home and want to understand what to expect during escrow, I'd be happy to help.
Sources & Additional Reading
- California Department of Real Estate – First-Time Homebuyer Guide: Home inspections, contingencies, and disclosures.
- California Association of REALTORS® – Buyer Requests for Repairs Quick Guide: Repair requests, seller responses, credits, and negotiations. Published March 2022; access may require C.A.R. authorization.
- California Department of Real Estate – Disclosures in Real Property Transactions: Seller disclosure requirements.
- Fannie Mae Selling Guide – Interested Party Contributions: Seller credit restrictions and financing concessions.
Disclaimer: This article is for general educational purposes only and is not legal, tax, or lending advice. Individual transaction requirements depend on the purchase agreement, applicable law, and financing. Consult qualified professionals regarding your specific circumstances.