You’ve just got the inspection report in hand and the clock is ticking. If you want to keep the deal alive and avoid surprise costs, you need a clear plan. Below is a straightforward, Texas‑focused checklist that walks you through every move from reading the report to signing at closing.
Step 1: Read the Inspection Report and Verify the Serious Issues
First, skim the 30‑plus pages for red flags: safety hazards, code violations, and any system that a lender will flag. Look for items marked as “major” or “critical”, these usually involve electrical, structural, plumbing, or HVAC problems that could affect habitability.
Next, open the report side by side with the photos. Confirm that the issue shown matches the description; sometimes a minor cosmetic blemish is mis‑recorded as a defect. If something feels off, call the inspector for clarification before you move forward.
When you spot a genuine safety or functional problem, note the page number, the exact wording, and the inspector’s recommendation. This level of detail will make your repair request hard to dispute.
And if you need a refresher on what a home inspection covers, see Wikipedia’s overview of home inspections for a solid definition.
To make sure you’re not missing anything, I like to run a quick sanity check with my own how to prepare your home for a home inspection guide. It reminds buyers what inspectors typically flag in Austin and the Hill Country, so you can spot any out‑of‑place findings.
Step 2: Prioritize Repairs by Risk, Cost, and Timing
Not every item on the list deserves a negotiation push. Split the findings into three buckets:
- Must‑Fix: Safety or code issues, and anything a lender will require before financing. Examples: faulty wiring, a cracked foundation, or a leaking roof.
- Should‑Fix: Functional problems that affect daily living but aren’t life‑or‑death. Think a broken water heater or a busted dishwasher.
- Can‑Wait: Purely cosmetic concerns like paint chips or outdated fixtures.
Assign a rough cost range to each Must‑Fix item. I often ask my trusted contractors for ball‑park estimates; even a quick quote can turn a vague request into a concrete number.
Compare the estimates with your available repair budget and the home’s condition. I would base the decision on what the work involves, when it needs to happen, and whether you can afford it after closing.
For a deeper dive on how to assess repair costs and prioritize them, the Real Estate Resource Center has a handy worksheet that walks you through the math.
Step 3: Choose the Right Repair Request and Put It in Writing
Texas contracts let you ask for three types of post‑inspection relief: a seller‑performed repair, a seller‑paid credit at closing, or a price reduction. Which one you pick depends on timing, your financing, and how much control you want over the work.
If the repair is quick and inexpensive, like a missing GFCI outlet, you can ask the seller to fix it before closing. For a larger job, first ask your lender whether the work must be completed before the loan can close. A closing credit does not replace a lender-required repair.
When you draft the request, be laser‑focused. Reference the exact page and photo number, describe the defect, and state the remedy. For example: “Please have a licensed electrician correct the double‑tapped breaker noted on page 14 of the inspection report, and provide a receipt before closing.”
Attach a written estimate from a licensed contractor to each monetary request. A written estimate can make the request easier to evaluate and support negotiations in Texas markets.
Need a template? I include a repair addendum in my Making an Offer packet that helps organize the request clearly.
Step 4: Negotiate the Repair Request
Send your written request early enough to negotiate before your option period expires. I would check the deadline in your signed contract before setting a response date; a repair request does not extend the option period.
Group your requests into tiers: Tier 1 (Must‑Fix) gets a firm “yes or no” ask; Tier 2 (Should‑Fix) is presented as a negotiable credit; Tier 3 (Can‑Wait) is left off the addendum but noted for future budgeting.
When the seller pushes back, keep the tone collaborative. Explain the documented problem and the repair you are requesting, then work toward a written agreement that fits the closing schedule.
One mistake buyers make is to demand every item at once. A long, 40‑item wishlist overwhelms the seller and often leads to a flat “no.” Instead, present a concise three‑tier list; the seller can agree to Tier 1 and either decline or counter‑offer on the rest.
Pro tip: if the seller balks on a high‑cost Must‑Fix, suggest a neutral third‑party inspection or a shared‑cost arrangement. That shows you’re flexible while still protecting your interests.
For guidance on the risks of waiving inspection contingencies, review reputable consumer guidance on buyer remorse.
Step 5: Confirm the Work Before Closing and Decide When to Walk Away
Once the seller agrees, set a deadline for completion that aligns with your closing date. Ask for receipts, photos, and a signed statement that the work was finished to code.
If the seller offers a credit instead of performing the repair, ask your loan officer how it can be applied to eligible closing costs and shown on the closing statement. Compare the cash you will need after closing with the contractor’s estimate; a closing credit is not an unrestricted cash payment for repairs.
Schedule a final walkthrough 24‑48 hours before closing. During this walk‑through, verify that the repairs match the agreed‑upon scope. If anything is missing, you can ask the seller for a short extension or a supplemental credit.
If the repair costs change your decision, check which termination right is still available under your contract. TREC explains that the termination option is negotiated: with a valid option right, you must give written notice during the option period. The option fee must also be paid on time. After that period expires, an inspection finding alone does not give you an unrestricted right to cancel; any other termination right depends on the contract’s terms.
When you’re ready to move forward, the Austin Home Buyers Guide walks you through the final steps, from signing the closing disclosure to getting the keys.
FAQ
Can I skip the option period and still negotiate repairs?
Yes, you can still ask the seller to agree to repairs, but the seller does not have to accept a repair amendment. Giving up the option period removes that unrestricted cancellation right; it does not prevent you from making a request.
How long do I have to submit my repair request?
The option period is negotiated in your contract; there is no universal 10-business-day deadline. Check its exact end date and notice requirements, and leave time to agree on repairs before it expires.
Should I ask for a credit or a price reduction?
A lender-approved credit can reduce eligible closing costs, while a price reduction lowers the agreed purchase price. Ask your loan officer to compare the effect on your cash needed at closing and your mortgage. Either choice still has to satisfy any lender-required repairs.
Do I need a contractor’s estimate for every repair request?
You don’t need one for every cosmetic item, but for larger monetary requests a written estimate from a licensed contractor strengthens your case and speeds up seller approval.
What if the seller refuses all repairs?
You can propose a credit, accept the condition you have agreed to buy, or use a termination right that still applies. If you are relying on the option period, give the required written notice before it expires.
Are there lender limits on repair credits?
Yes. The permitted amount depends on the loan’s rules, the property’s use and, for some loans, the down payment. Fannie Mae’s contribution limits, for example, vary by occupancy and loan-to-value ratio. Ask your loan officer to confirm the amount and eligible costs before agreeing to a credit.
Ready to protect your investment? Start by reading your inspection report carefully and use the steps above to turn those findings into a solid negotiation strategy. If you want a personalized walk‑through, reach out to me, Robbie English, REALTOR, Broker, so we can get your repair addendum drafted and keep your Texas home purchase on track.
