How do I negotiate repairs after inspection?
Want the buyer to pay for repairs? Read this first — the exact steps that get sellers the best outcome after an inspection.
Why inspection repair negotiation matters in Georgetown, ON
If you’re selling a home in Georgetown (Halton Hills), every repair negotiation affects your net proceeds and timing. Buyers use inspections and appraisals to ask for repairs or credits. How you respond decides whether you keep the sale, reduce your price, or close on time.
This guide gives a clear, no-fluff playbook to negotiate repairs after inspection. It’s written for Georgetown home sellers who need fast, profitable answers.
Start with a plan: pre-listing inspection beats reactive negotiation
Don’t wait until a buyer’s inspector finds the problem. A pre-listing inspection lets you:
- Spot issues early and decide what to fix or disclose.
- Get contractor estimates so you control costs.
- Avoid last-minute delays at closing.
Local tip: Georgetown has many older homes and mature systems. A pre-listing inspection prevents surprises around roofing, drainage, and HVAC — common triggers for buyer requests.
Step-by-step process to negotiate repairs after inspection
- Read the inspection report like a seller
- Focus on safety, structural, and material defects first. Cosmetic items are negotiable, but safety and structure are non-starters for most buyers.
- Mark items that are “recommendations” versus “defects.” Buyers have more leverage on defects.
- Get 2–3 quotes from licensed local contractors
- Use quotes to justify your response. Buyers and lenders respect documented estimates.
- Always include at least one local contractor from Halton Hills or nearby Mississauga/Brampton. Local firms understand local codes and weather-related issues.
- Choose your strategy: repair, credit, or price reduction
- Repair before closing: Best when the cost is low and will speed financing. Buyers feel confident, and you control workmanship.
- Credit at closing: Good when timelines or contractor access are an issue. Buyer gets cash; no work needed pre-close.
- Price reduction: Use when buyers want high-cost repairs and you don’t want to coordinate work. It reduces sale price and might affect appraisal.
- Prepare a concise response package
Include:
- A simple cover letter that lists each requested repair.
- Inspection excerpts or page references.
- Contractor estimates or receipts for completed work.
- Proposed resolution: done, credit amount, or price reduction.
Tone: firm, factual, not defensive.
- Use leverage: market context and appraisal insight
- If Georgetown’s market favors sellers, push back on minor cosmetic requests.
- If the appraisal already came in low, avoid aggressive credit offers that further lower the financed amount. Instead, offer targeted repairs tied to lender concerns.
- Negotiate with clear limits
- Set a maximum dollar amount you’ll contribute.
- Use a cap on credit or repairs in your counter-offer.
- Offer options: “We’ll complete X, or provide $Y credit.” Buyers pick what works.
- Document the agreement in writing
- Use the standard addendum in your purchase agreement.
- If you promised repairs, list materials, workmanship standards, and deadlines.
Tactics that win — practical examples
- Cost-split: If the inspection identifies a mid-range issue (e.g., partial roof repair), offer to split the cost 50/50. It keeps both sides invested.
- Limited scope repair: Fix only the items that directly affect safety or financing. Don’t volunteer to repaint or upgrade.
- Escrow holdback: If a contractor can’t finish before closing, agree to an escrow or holdback with clear release conditions.
- Permit confirmation: If work requires permits, provide proof you’ll obtain them or evidence of a previous permitted repair. This eases lender concerns.
Sample language to use in your response
- If repairing: “Seller will complete the following repairs by licensed contractors before closing. See attached estimates and contractor contacts.”
- If crediting: “Seller offers a credit of $X at closing toward buyer’s repair costs. This credit will be applied to closing adjustments.”
- If countering: “Seller will complete items A & B. Seller offers a $X credit for items C & D. Seller will not be responsible for cosmetic items listed on pages X–Y of the inspection.”
Keep it short, specific, and tied to estimates.
How appraisals interact with repair negotiations
- Appraisers look for major defects that affect value. If the buyer’s lender flags an appraisal concern, address those items first.
- If repairs increase appraised value, they can preserve the buyer’s financing and secure your sale.
- Don’t over-credit and risk lowering the appraised value below the loan amount.
Local note: Georgetown listings in competitive neighborhoods can appraise strong if visible issues (roof, foundation, drainage) are handled or credited appropriately.
When to concede and when to hold firm
Concede when:
- Safety or structural items are on the report.
- The buyer has valid lender or insurance objections.
- The repair cost is small relative to the sale price.
Hold firm when:
- The item is cosmetic or a routine maintenance issue.
- The buyer is using minor defects to renegotiate price in a seller’s market.
- The requested fixes are upgrades rather than necessary repairs.
Save time and money: practical cost rules for sellers
- Rule of thumb: if repair < 1% of sale price, fix it. It’s often cheaper than giving a credit or losing the buyer.
- For repairs between 1–3%: get competitive quotes and consider a credit if coordination is hard.
- Over 3%: counter with price reduction or split costs, depending on market strength.
Example: On a $700,000 Georgetown home, a $7,000 HVAC repair is 1%. You’ll likely want to fix or credit it to keep financing clean.
Working with your real estate agent — what to expect
Your agent should:
- Interpret the inspection and highlight high-priority items.
- Help get local contractor referrals and realistic quotes.
- Craft the response package and set negotiation limits.
- Advise based on current Georgetown market data.
If your agent can’t provide these, find one that does. You need a negotiator, not a paper-pusher.
Quick checklist before you send a counter-offer
- Do you have at least two contractor quotes?
- Did you prioritize safety and lender-related defects?
- Is your response written and documented?
- Did you set a firm dollar cap and alternative options?
- Will the solution preserve the appraisal and close on time?
If the answer is yes, send it. Delay costs money.
Closing day options if work can’t finish
- Escrow holdback with release conditions.
- Buyer-paid contractor access after closing with agreed schedule.
- Agreed credit applied at closing.
Get agreements in writing and signed.
Final word — be decisive and control the narrative
Buyers expect negotiation after inspection. Don’t get emotional. Use data (inspection quotes, contractor bids, market context) to make principled, fast decisions. Your goal: preserve the sale and protect your net proceeds.
If you need a local partner who knows Georgetown inspections, appraisals, and how lenders respond, call or email today.
Contact: tony@sousasells.ca • 416-477-2620 • https://www.sousasells.ca
FAQ — Home inspections, appraisals, and repair negotiations in Georgetown, ON
Q: Should I get a pre-listing inspection in Georgetown?
A: Yes. It reduces last-minute surprises and gives you negotiating power. For older Georgetown homes, it’s especially valuable.
Q: How much will repairs typically cost in Georgetown?
A: Costs vary. Get 2–3 local quotes. Small repairs often under $1,500; major structural or roofing work can run several thousand.
Q: What items do lenders require to be fixed?
A: Safety hazards, active leaks, severe electrical issues, and anything that prevents habitable occupancy are common lender red flags.
Q: What if the buyer requests everything in the inspection report?
A: Prioritize. Address safety and lender issues. Push back on cosmetic or recommended items. Offer options: credit, limited repairs, or price adjustment.
Q: How do appraisals affect repair negotiations?
A: Appraisers focus on value-impacting defects. If the appraisal flags issues, address those to keep financing intact.
Q: Is it better to repair or offer a credit?
A: Repair if the cost is low and will smooth financing. Credit if timing or access is an issue. Use contractor estimates to decide.
Q: What if contractors disagree on the work needed?
A: Use the most conservative licensed opinion or get a third quote. Provide all quotes in the response package.
Q: Can I refuse to do repairs?
A: Yes, but it risks losing the buyer or triggering a price reduction request. Determine what you’re willing to accept financially.
Q: How long does negotiation usually take?
A: Typically a few days to a week. Keep responses fast. Slow replies cost leverage.
Q: Where can I find reputable contractors in Georgetown?
A: Ask your agent for local referrals. Look for licensed trades, written estimates, and clear timelines.
Q: Will repairs delay closing?
A: They can. Use escrow holdbacks or credits to avoid delays when necessary.
Q: How should I document completed repairs?
A: Keep invoices, contractor contacts, permits, and photos. Provide them with your counter-offer.
Q: What if the appraisal comes in low after I offered a credit?
A: Re-evaluate. You may need to split the difference, lower the sale price, or renegotiate financing with the buyer.
Q: Who should I call for help in Georgetown?
A: A local real estate agent experienced with inspections and appraisals. For expert help, contact: tony@sousasells.ca • 416-477-2620 • https://www.sousasells.ca
