By Natalie Novarro, REALTOR®
Sotheby’s International Realty – Beverly Hills
Serving the Hollywood Hills • Sunset Strip • Surrounding Los Angeles Neighborhoods
You accepted an offer on your Los Angeles home, signed the purchase agreement and opened escrow.
Then the buyer completed their inspections.
Now they’ve come back asking for repairs, a credit, a price reduction—or possibly all three.
For many sellers, the immediate reaction is:
“Wait. We already agreed on a price. Why are we negotiating again?”
It can be frustrating, particularly if you believed the difficult part was over once you accepted the offer.
But inspection negotiations are a common part of a real estate transaction, and receiving a request from the buyer does not necessarily mean you should agree to everything they ask for.
The better question is: What is the buyer asking for, what does your contract say, how significant are the issues, and what response gives you the best chance of getting the transaction successfully to closing?
Here’s how I would look at it from a seller’s perspective.
1. Why Is the Buyer Asking for Repairs After We Already Agreed on a Price?
Because the buyer may have agreed to the purchase price before fully investigating the condition of the property.
Once in escrow, buyers commonly conduct a general home inspection and may also bring in specialists to evaluate areas such as the roof, plumbing, electrical system, HVAC, foundation, sewer line, pool or other components of the property.
Those inspections can uncover conditions the buyer did not know about when the offer was written.
Depending on the terms of the purchase agreement and any applicable contingencies, the buyer may then request repairs, a credit or another adjustment to the transaction.
That doesn’t necessarily mean the buyer is trying to renegotiate the deal unfairly. Sometimes an inspection uncovers a legitimate issue that neither party knew existed.
Other times, the buyer’s request looks more like a wish list.
The important thing is to determine which situation you’re dealing with.
2. Do I Have to Make the Repairs the Buyer Requests?
Not necessarily.
A buyer requesting a repair and a seller being contractually obligated to make that repair are not the same thing.
Your response depends on the terms of the purchase agreement, any repairs or conditions that were already agreed upon, the status of the buyer’s contingencies, disclosures, and the specific circumstances of the transaction.
In many transactions, an inspection-related request becomes another negotiation between buyer and seller.
A seller may agree to everything, agree to certain items, offer a credit or other adjustment instead, reject some or all of the request, or propose another solution.
Before responding, I would review the request alongside the actual contract and inspection findings rather than automatically saying yes—or automatically saying no.
3. Separate Serious Issues From the Buyer’s Wish List
Not every item on an inspection report deserves the same response.
There is a big difference between an inspector identifying a potentially significant issue such as:
- an active plumbing leak
- a roof problem
- an electrical safety concern
- a foundation or structural concern
- a nonfunctioning major system
- water intrusion
- a sewer issue
and a buyer asking for cosmetic changes, upgrades or replacement of components that are simply older.
An inspection report on an older Los Angeles home can be long. That does not automatically mean the house is in terrible condition.
This is particularly important in neighborhoods such as the Hollywood Hills, where many homes were built decades ago and may contain a combination of original components, renovations and additions completed at different times.
The goal is to identify what is material to the transaction and what is simply part of owning an existing home.
4. “But They Knew the House Was Older When They Made the Offer”
I hear this reasoning from sellers, and it’s understandable.
If the home was built in 1950, the buyer obviously knew they weren’t buying brand-new construction.
But a buyer knowing that a house is older isn’t necessarily the same as knowing that a particular system has a problem.
For example, there is a difference between:
“The roof is older.”
and
“The roof inspection identified an active leak and recommends significant work.”
The same applies to plumbing, electrical, drainage, foundations and other major components.
That is why I wouldn’t react to an inspection request based solely on the number of items the buyer lists. I would look at the substance of the findings.
5. Should I Make the Repair or Give the Buyer a Credit?
Sometimes a seller agrees that an issue should be addressed but doesn’t necessarily want to manage the repair themselves.
In that situation, the parties may consider alternatives such as a credit or another negotiated financial adjustment, subject to the contract and any lender or closing requirements.
There can be advantages to this approach.
The seller may avoid coordinating contractors during escrow, while the buyer may prefer to choose who performs the work after closing.
But a credit isn’t automatically the best solution in every transaction. The amount, the buyer’s financing and other transaction-specific factors can matter.
This is something I would evaluate with the professionals involved in the transaction before deciding.
6. What If the Buyer Asks for a Huge Credit?
This is where strategy becomes especially important.
Suppose the buyer’s inspection produces a long list of items and they come back asking for a substantial credit.
My first question wouldn’t be:
“Do we give it to them?”
It would be:
“How did they arrive at that number?”
Are there contractor estimates?
Is the request based on an actual defect?
Is the buyer asking for the full cost of replacing something that is currently functioning but older?
Are several small inspection comments being turned into a much larger financial request?
Understanding the basis of the request makes it much easier to determine how to respond.
You can then evaluate the request against the inspection reports, estimates, the property’s condition, the purchase price and the strength of the overall transaction.
7. Consider the Deal You Already Have
Inspection negotiations shouldn’t happen in a vacuum.
Let’s say you received several offers and accepted a strong buyer who is well qualified, has reasonable terms and is otherwise moving through escrow smoothly.
That matters.
Now consider a different scenario: you accepted the only offer after the home had been on the market for several months.
That matters too.
As a seller, I would consider:
How strong is this buyer?
How strong was the original offer?
Did we have other serious buyers?
How long was the home on the market?
What is the current competition?
If this transaction didn’t close, how confident are we that we could reproduce this deal?
Sometimes giving a reasonable credit to preserve an excellent transaction makes financial sense.
Other times, the buyer’s request may be aggressive enough that pushing back makes sense.
There isn’t one answer that applies to every property.
Related: Should I Accept a Low Offer on My Hollywood Hills Home?
8. Don’t Let Emotion Make the Decision
Inspection requests can feel personal to sellers.
You’ve lived in the house for years. Everything worked for you. Suddenly an inspector produces pages of observations and the buyer sends over a request that makes it sound as though the house is falling apart.
It’s easy to become defensive.
Try not to.
The inspection isn’t a report card on how you maintained your home, and the buyer’s request doesn’t determine what you ultimately agree to.
This is a business negotiation.
The question is not:
“Are they being ridiculous?”
The more useful question is:
“What response puts me in the strongest position financially while protecting the transaction?”
9. Be Careful About Simply Saying “No” to Everything
There are situations where rejecting a request may make sense.
But before doing so, I would want to understand the possible consequences under the particular contract.
If the buyer still has an applicable investigation or other contingency, the buyer may have contractual rights that affect what happens next.
California’s Department of Real Estate advises buyers to include desired contingencies in their offer and explains that inspections can provide an opportunity to negotiate necessary repairs with the seller.
That is one reason the exact contract—and the status of its contingencies—matters so much.
A seller shouldn’t assume either that the buyer can automatically walk away or that the buyer is automatically locked into the transaction.
The contract controls.
10. What If the Buyer Already Removed Their Inspection Contingency?
That can materially change the situation, but again, I would go directly to the contract rather than making assumptions.
Contingency removal can affect a buyer’s contractual rights regarding the condition or investigation of the property. Other contractual rights or obligations may also remain depending on the circumstances.
If you’re dealing with a dispute about whether a buyer can cancel, whether a deposit is at risk or whether a party is required to perform, that is the point where legal advice may be appropriate.
Your real estate agent can help you understand the transaction and the documents, but legal disputes involving contractual rights should be addressed by a qualified California real estate attorney.
11. What If We Can’t Agree on the Repairs?
Sometimes buyer and seller go back and forth.
The buyer asks for $30,000.
The seller offers $5,000.
The buyer comes back at $15,000.
The parties may ultimately reach an agreement—or they may not.
Whether the buyer can cancel and what happens next depends on the contract, applicable contingencies, notices, deadlines and other facts of the transaction.
That is why I wouldn’t negotiate inspection issues casually.
Every decision should be made with the larger transaction in mind.
Related: What Happens If a Buyer Backs Out of My Los Angeles Home Sale?
12. Remember: If This Buyer Walks Away, You Still Know About the Issue
This is something sellers sometimes overlook.
Suppose the buyer’s inspection uncovers a material defect you genuinely did not know about before.
Even if the current transaction does not close, that information may become relevant to your disclosure obligations going forward.
You can’t necessarily put the house back on the market and pretend the inspection never happened.
This is another reason I would consider the bigger picture before rejecting a reasonable solution solely because I was irritated by the request.
Sometimes keeping the current transaction together is more attractive once you consider what going back on the market could involve.
13. The Best Response Is Usually Strategic, Not Automatic
When a buyer asks for repairs, I don’t believe the seller’s default response should be either:
“Just give them what they want.”
or
“Absolutely not. The house is sold as-is.”
Instead, I would look at the entire transaction.
What did the inspection actually uncover?
What was previously disclosed?
What does the contract say?
Which contingencies remain?
How strong is the buyer?
How strong is the current market for this particular property?
What would the requested concession cost the seller?
And what could it cost the seller if the transaction doesn’t close?
Those questions give you a much better basis for deciding how to respond.
Frequently Asked Questions
Does a seller have to fix everything on a home inspection in California?
Not automatically. The seller’s obligations depend on the purchase agreement, any repairs already agreed upon, applicable laws and the specific circumstances of the transaction. Inspection-related requests can often become a negotiation between the parties.
Can a buyer ask for repairs after the offer has been accepted?
Yes. Depending on the contract and applicable contingencies, a buyer may conduct inspections after the offer is accepted and request repairs, credits, a price adjustment or other changes.
Can I say no to a buyer’s repair request?
A seller may be able to reject some or all of a buyer’s request, but the consequences depend on the purchase agreement and the status of the buyer’s contingencies and other contractual rights. Review the contract before deciding how to respond.
Is it better to make repairs or give the buyer a credit?
It depends. A credit may be simpler in some situations because the buyer can handle the work after closing. In other circumstances, completing the repair may make more sense. Financing and closing requirements can also affect what is possible.
Can a buyer cancel escrow because of the home inspection?
Potentially, depending on the terms of the contract and whether the buyer has an applicable contingency or other cancellation right. The specific purchase agreement and status of contingencies should be reviewed before assuming either party’s rights.
What happens if the buyer and seller can’t agree on repairs?
What happens next depends on the contract, contingencies, deadlines and other facts of the transaction. The parties may continue negotiating, proceed without an agreement on the requested changes, or the transaction may potentially be canceled if a contractual cancellation right exists.
Should I agree to repairs just to keep the deal together?
Not automatically. The better approach is to weigh the cost of the buyer’s request against the strength of the existing transaction and the potential cost and risk of returning to the market.
Already in Escrow and Dealing With a Buyer’s Repair Request?
If you’re selling a home in Los Angeles and you’re already in escrow, inspection negotiations can have a significant impact on whether the transaction reaches closing—and on your final proceeds.
The goal isn’t simply to give the buyer everything they ask for or reject everything on principle.
It’s to understand what they’re asking for, why they’re asking for it, what your contract provides and what response makes the most sense for your particular sale.
I specialize in luxury and architectural homes throughout Los Angeles, with a focus on the Hollywood Hills and Sunset Strip.
If you’re thinking about selling your home and want an experienced agent helping you navigate the transaction from pricing and marketing through inspections and escrow, visit the Contact page or call/text 323-719-3360.
I’m always here to help.
About the Author
Natalie Novarro is a real estate agent with Sotheby’s International Realty in Los Angeles, specializing in the Hollywood Hills and Sunset Strip.
With over 20 years of experience and more than $100M in career sales, she works with buyers, sellers, and investors throughout Los Angeles.
For more information or to get in touch, visit the Contact page or call/text 323-719-3360.
This article is for general informational purposes only and is not legal advice. Purchase agreements, contingencies, inspection rights, repair obligations, cancellation rights and deposit issues depend on the specific contract and circumstances. Sellers and buyers should review their transaction documents with their real estate professional and consult a qualified California real estate attorney when legal advice is needed.