Repair Credits vs Seller Repairs: Which Is Better After Inspection?

Your home inspection is done and the report lists several items that need attention. Now you have a choice: ask the seller to fix the issues before closing, or request a credit so you can handle the repairs yourself.

Both options have their place, but understanding the pros and cons of each can help you make the right call — and potentially save you thousands of dollars.

Two Paths After Inspection

When your inspection reveals repair needs, you generally have two options to present to the seller:

• Repair Credits (also called seller concessions): The seller gives you a credit at closing — reducing your closing costs or purchase price — so you can hire your own contractors to handle the work after you move in.
• Seller Repairs: The seller agrees to complete specific repairs before closing, usually with contractors of their choosing.

Each approach has distinct advantages and drawbacks. Here's how they compare:

When to Ask for Credits

Repair credits are typically the better choice in these situations:

• Large or complex repairs — For significant work like roof replacement, HVAC installation, or foundation repairs, you want to choose a reputable contractor and oversee the work yourself.
• Cosmetic preferences — If the repairs involve choices you care about (flooring, paint, fixtures), a credit lets you select materials and styles you actually want.
• You have contractor relationships — If you already know reliable contractors or have gotten quotes, you can ensure quality work at a fair price.
• Multiple small repairs — It's simpler to take a lump credit and handle a list of smaller items on your own schedule than to manage the seller completing each one.

When to Ask for Seller Repairs

There are situations where asking the seller to complete repairs makes more sense:

• Safety issues that must be fixed before closing — Some hazards (like a gas leak or exposed wiring) need to be addressed immediately, and you can't wait until after you own the home.
• Lender requirements — Your mortgage lender may require certain repairs to be completed before they'll fund the loan. Common examples include missing handrails, peeling paint (on older homes with potential lead), and non-functional systems.
• Simple, straightforward fixes — If the repair is minor and clear-cut (like replacing a broken window or fixing a leaking faucet), there's less risk of the seller cutting corners.

How to Calculate Repair Credits

Getting the right credit amount is critical. Ask for too little and you're leaving money on the table. Ask for too much and the seller may reject your request entirely. Here's how to find the right number:

1. Get multiple estimates. Contact 2–3 licensed contractors for quotes on the major repair items. This gives you a realistic range of what the work will actually cost.
2. Use the middle range. Don't base your request on the cheapest or most expensive quote. The middle estimate is the most defensible number in negotiations.
3. Account for your time and effort. Managing repairs takes time. It's reasonable to factor in a modest buffer for the inconvenience of handling work after closing.
4. Document everything. Present your credit request with supporting data — the inspection report findings paired with contractor estimates or a professional cost analysis.

Negotiation Tips for Credits

When requesting repair credits, how you frame the ask matters as much as the amount. Here are some strategies that work:

• Present it as "either/or." Give the seller a choice: "We're requesting either a $5,200 credit at closing or completion of the following repairs before closing." This makes the credit feel like the easier option.
• Frame credits as easier for the seller. Emphasize that a credit is simpler — no coordinating contractors, no scheduling, no delays. Most sellers prefer writing a check over managing repair projects.
• Back up your numbers with cost data. A credit request supported by contractor estimates or a professional repair cost analysis carries far more weight than a round number pulled from thin air.
• Be reasonable. Stick to legitimate repair items — safety hazards, major system defects, and significant issues. Padding your request with minor cosmetic items weakens your credibility.

Common Mistakes to Avoid

Many buyers undermine their negotiation by making these avoidable errors:

1. Asking for too much. Requesting credits for every item on a 40-page inspection report signals that you're not being reasonable. Focus on the items that actually matter — safety hazards and major defects.
2. Not getting estimates. Requesting a $10,000 credit without any supporting data is easy for a seller to dismiss. Always back your numbers with real cost information.
3. Accepting the seller's "handyman" repairs. If you do agree to seller repairs, require that the work be done by licensed, insured professionals — not the seller's friend who "does work on the side." Specify this in your repair addendum.
4. Missing your contingency deadline. Your inspection contingency has a deadline. Make sure you submit your repair request or credit request within that window, or you may lose your negotiating leverage entirely.
5. Forgetting about lender limits. Some loan programs cap the amount of seller concessions allowed. Check with your lender before requesting a large credit to make sure it won't create issues with your financing.