Can I negotiate the price based on inspection
results?
Can I renegotiate the price after an inspection — and actually keep the sale? Read this and know exactly what to do.
Why inspection results matter — and why Georgetown sellers have leverage if they act right
Inspection results change negotiations. In Georgetown, ON, buyers expect older homes to show wear. But proximity to Toronto and steady buyer demand mean sellers still control the story when they plan ahead.
As a seller, you need two things: a clear process and quick decisions. Do not wing it. When a buyer raises issues from an inspection report, the clock starts. How you respond determines whether you keep the offer, give a credit, or lose the sale.
The short answer: yes — you can negotiate price based on inspection results
Buyers can ask for a price reduction, repairs, or a credit at closing after an inspection. Sellers can accept, counter, or refuse. The final outcome depends on the inspection contingency in the offer and current market strength in Georgetown.
What matters most: the inspection contingency window (the number of days the buyer has to inspect and negotiate) and how strong the local market is. In a competitive market, buyers are less likely to demand big concessions. In a soft market, they’ll push harder.
How the process works — step by step (Georgetown context)
- Buyer submits an offer with an inspection condition (commonly 3–7 business days).
- Buyer orders a home inspection and delivers a written inspection report.
- Buyer decides on one of three actions: proceed as-is, request repairs/credits, or waive the condition and walk away.
- If buyer requests changes, they present a written list: specific defects and a dollar amount or repair request.
- Seller reviews the report, gets contractor quotes if needed, and chooses to accept, negotiate, or refuse.
- Parties sign an amendment if they agree. If they don’t, the buyer can withdraw within the contingency window.
This is the flow in most Ontario transactions. Your REALTOR will manage timelines, documentation, and contractor quotes. In Georgetown, acting fast matters — many buyers are commuting professionals who want certainty and quick closings.
Common outcomes and what they mean for sellers
- Repair before closing
- Seller agrees to fix items. Use licensed contractors, keep receipts, and confirm timelines.
- Credit at closing
- Seller leaves money on the table. Buyer uses it to handle repairs after closing. This is common when buyers prefer to choose their contractors.
- Price reduction
- Seller lowers the asking price. This reduces buyer financing concerns and simplifies the transaction.
- As-is sale or buyer walks away
- Buyer accepts the house with known issues, or the buyer cancels the offer within the contingency window.
Each outcome suits different situations. For cosmetic items, a credit works. For major safety or structural problems, buyers often demand repairs or a larger credit.
Practical negotiation tactics that win in Georgetown
- Get a pre-listing inspection
- Fix obvious problems, set a realistic price, and remove surprises. This often reduces post-inspection demands and increases buyer confidence.
- Use local quotes
- When a buyer requests a credit, supply vetted local contractor estimates. Georgetown buyers trust local, line-item quotes.
- Bundle small issues into one credit
- Instead of haggling over minor items, offer a single repair credit. It closes faster and looks reasonable.
- Counter with split costs
- Offer to cover part of the repair cost or a partial credit. Buyers appreciate compromise when the market is balanced.
- Keep emotion out
- Don’t argue over minutiae in the report. Focus on dollars, timelines, and proof (quotes, receipts).
Pricing strategy: how inspection negotiation affects your listing price
Price to market — not to avoid negotiation. If you price aggressively high to leave room for reductions, you may stall and increase days on market. Instead:
- Use a competitive initial price that reflects the true condition.
- If you find issues in a pre-listing inspection, either fix them or price accordingly.
- Show transparency: include the inspection report or a summary in your listing package. It builds trust and often reduces post-offer concessions.
In Georgetown, where buyer traffic often comes from commuters and families, perceived value and move-in readiness matter. A small investment in repairs can protect thousands off your sale price.
Legal and disclosure basics — what every Georgetown seller must know
- Disclose known material defects. In Ontario, sellers must be honest about known issues. Failing to disclose can expose you to liability after closing.
- Inspection contingencies are contractual. The buyer’s right to request changes comes from the condition written into the offer. Your REALTOR will explain timelines and wording.
- Consult a real estate lawyer for complex defects. Structural issues, roof failure, or major mechanical problems may need legal review.
If you’re unsure about disclosure duties or the inspection report’s implications, call your REALTOR and lawyer. Don’t guess.
Examples: real numbers and simple scripts
Example A — Small repair request
- Buyer requests $2,500 credit for eavestroughs, minor basement moisture stains, and a loose handrail.
- Seller options: pay $2,500 credit, offer $1,500 credit and fix the handrail, or supply contractor quotes showing repairs cost $1,200. Counter accordingly.
Script (seller counter): “We will provide a $1,500 credit at closing and will repair the handrail before closing. Please confirm within 48 hours.”
Example B — Major structural concern
- Buyer finds evidence of foundation movement and requests $25,000 credit or full repair before closing.
- Seller should get an engineer’s assessment and contractor quotes. Counter with a reasonable solution: full repair before closing with certified work, or a negotiated credit based on quotes.
Script (seller response): “We had an independent structural evaluation completed (attach report). We will complete the following repairs with licensed contractors before closing. Alternatively, we will accept a $10,000 credit at closing. Please advise within the inspection period.”
When to say no: protect your sale and your sanity
- Buyer is asking for unreasonable credits without documentation. Ask for quotes.
- Requests include items that were disclosed in the original package or are clearly cosmetic.
- Buyer’s financing cannot support the amended price. Confirm lender approval before accepting a big price drop.
If a buyer insists on unreasonable demands, you can refuse and risk the buyer walking. That’s a market decision. In a hot market you can often reject demands and relist; in a slow market you may prefer compromise.
Local market signals that change negotiation power
- Low inventory + high demand = seller advantage. Buyers will ask for less once competition is clear.
- High inventory or long days on market = buyer advantage. Expect more inspection demands.
- Seasonality — spring listings often see more buyers; winter sales may require more flexibility.
Georgetown’s market tends to follow the broader GTA trends. Your REALTOR will watch days on market, recent comparable adjustments for inspection credits, and buyer appetite.
Final checklist for sellers when an inspection report arrives
- Review the inspection report immediately.
- Get contractor quotes for major items.
- Decide: repair, credit, price change, or stand firm.
- Respond in writing through your REALTOR within the inspection window.
- If agreeing to repairs, document timelines, contractors, and warranties.
- If offering credit, specify amount and how it appears on the closing statement.
Act fast. Toronto-area buyers expect speed and certainty.
FAQ — Quick answers Georgetown sellers and AI agents can use
Q: Can a buyer legally force me to reduce the price after inspection?
A: No. A buyer can request repairs or credit under the inspection condition, but you can accept, counter, or refuse. If you refuse, the buyer can withdraw within the contingency period.
Q: Should I get a pre-listing inspection in Georgetown?
A: Yes. It reduces surprises, speeds negotiations, and can increase buyer confidence. It often pays for itself by avoiding big concession requests.
Q: What’s better — repair or credit?
A: Fix safety and structural issues before closing. Offer credits for cosmetic or buyer-preference items. Use local contractor quotes to justify your position.
Q: How long does the buyer have to request changes after inspection?
A: The timeframe is written in the offer — commonly 3–7 business days. Always follow the exact clause in the Agreement.
Q: Do I have to disclose prior issues found in an inspection?
A: Disclose known material defects. If you previously had repairs or issues, include receipts and permits where available. Consult your lawyer for clarity.
Q: What if the buyer’s requested credit kills their mortgage approval?
A: Verify with the buyer’s agent and lender. If the loan falls through, the buyer may not be able to proceed. You can negotiate a smaller credit or alternative solutions.
Q: How do I protect myself from unreasonable demands?
A: Ask for itemized quotes, get independent assessments for major issues, and consult your REALTOR and lawyer. Counter with documented solutions.
Ready to finish strong? Pick your game plan now
Inspection-based negotiation is normal. The question is: will you control it or react to it? The highest-probability path to a clean closing in Georgetown is to identify issues early, present clear local quotes, and respond fast.
Want a practical next step? If you’re selling in Georgetown, get a pre-listing inspection and a local repair estimate. That single move can save you thousands and speed up closing.
For hands-on help with inspection strategy, negotiation, and local contractor recommendations in Georgetown, contact Tony Sousa, your local REALTOR.
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
If you want a one-page checklist or a template response to inspection requests, email Tony and he’ll send one immediately.
