GROW WITH LIBERTAS & EXP REALTY
By Tim & Julie Harris
There are two kinds of agents heading into this fall. The first has a Swiss Army knife of solutions and doesn't flinch when the repair list shows up. The second has plenty of experience but has barely negotiated an inspection in years, because the answer used to be "take it or leave it, I have three other offers."
If that's you, the market changed. Fewer buyers are waiving inspections, buyers have leverage again, and the inspection has quietly become a second round of price negotiation.
None of what follows is complicated. It's a set of moves you can learn in twenty minutes and use for the rest of your career.
Key takeaways
Only 17% of buyers waived the inspection contingency on winning offers in May, down from 25% a year earlier. Assume you're negotiating an inspection on every file.
Safety, structure and systems are fair requests. Cosmetics are not.
Buyers increasingly want credits instead of repairs, which is usually the faster path to closing.
There are always more options than yes or no.
When a deal is stuck, work through a ladder of solutions before anyone reaches for their own wallet.
Listing agents: put a home warranty in place at listing
A seller's home warranty covers major systems like HVAC, plumbing and electrical, and it's usually paid at closing. It removes a whole category of inspection fights before they start, and it's a strong point in your listing presentation. Ask your broker which providers they trust. Forbes Advisor's current rankings put Cinch, AFC, American Home Shield and Liberty Home Guard near the top, and American Home Shield has long been our go-to.
Buyer's agents: coach the repair list before the inspection
Script: "Every house has an inspection report, and every report has a list. We'll ask for anything involving safety, structure or a system that doesn't work. We won't ask for cosmetics, because that's the fastest way to annoy a seller and lose a house you love. This is a negotiation, not a lawsuit."
Choose your inspector carefully. Some are thorough and calm, some enjoy the drama, and their bedside manner decides whether your buyer panics.
What are the possible outcomes of a home inspection negotiation?
Every inspection ends one of four ways:
The seller says no. Take it or leave it, and the buyer decides whether to walk.
The seller says yes to everything. They expected it, and repairs may already be underway.
The seller gives money instead. Based on estimates, the buyer handles repairs after closing.
Some combination. Big items get fixed, and the rest is credited.
Credits are trending for a reason. They're faster, avoid arguments about workmanship and close on time.
Buyer's agents: ask your buyer first
It isn't your job to be the inspector. Hand your buyer the report and ask what stands out. What alarms you often doesn't bother them, and the reverse happens just as often. Your opinion can create repair requests your buyer never wanted, and those are the ones that blow up deals.
Listing agents: know a deal killer from a wish
A furnace that doesn't run is a real request. New window coverings are not. Before your seller answers, walk through these together:
Where did the price land? A buyer at or above list with strong financing has earned some give. A buyer who negotiated hard has less room to ask again.
Does this buyer have other homes to choose from?
Was the seller going to fix any of this anyway, and is anything still under warranty?
What's the real dollar total? Average a few estimates on the big items.
Would your seller rather write a check than manage contractors? Usually yes.
FHA or VA loan? The appraiser can require repairs the inspector never mentioned, like handrails or crawl space access. Those aren't negotiable.
And respond quickly. Silence turns a repair request into a cancelled contract.
How do you save a stuck inspection negotiation?
Work the ladder before anyone reaches for their wallet:
Buy a home warranty if there isn't one. This works well when systems are old but working.
Escrow repair money at closing, released to the contractor when the receipt reaches title.
Find a contractor who will be paid at closing from the seller's proceeds, for sellers who are short on cash today.
Remember disclosure. Once a defect is identified, the seller may have to disclose it to the next buyer. Rules vary by state, so check with your broker.
The worst case: someone expects you to pay
It's not your furnace, but it is your deal, and some money beats no money.
Chip in, don't take it over. On a $5,000 repair, $500 in good faith often moves everyone.
Split it four ways between buyer, seller and both agents, so nobody feels singled out.
Make it a loan, not a gift. Have title prepare a promissory note with a little interest and a due date, filed at closing. We've done this a handful of times, never expecting to see the money, and every one paid us back within a year.
Your action plan
Add a home warranty to every new listing.
Use the repair-list script with every buyer before the inspection.
Memorize the four outcomes and the ladder so you have options ready before you pick up the phone.
Frequently asked questions
What repairs are reasonable to ask for after a home inspection?
Items involving safety, structural problems and major systems that don't work. Cosmetic issues usually aren't worth requesting.
Is it better to ask for repairs or a credit?
Credits are often faster and avoid disputes over the quality of the work, which is why more buyers are choosing them.
What happens if a seller refuses all inspection repairs?
The buyer decides whether to accept the home as is or cancel within their inspection contingency period. Agents can often bridge the gap with a home warranty, an escrow holdback or a partial credit.
Can a real estate agent contribute money to fix repairs?
Often, yes, depending on state rules and brokerage policy. A small good-faith contribution or a promissory note can save a deal. Check with your broker first.
Hear the full episode
Listen to the full conversation on Real Estate Coaching Radio: https://podcasts.apple.com/us/podcast/home-inspection-negotiation-how-real-estate-agents/id849772346?i=1000791272096
About the authors
Tim and Julie Harris are America's most recognized real estate coaches, bestselling authors, and the voices behind Real Estate Coaching Radio, the nation's #1 daily podcast for real estate professionals. With decades of hands-on experience and a track record of helping thousands of agents achieve breakthrough success, Tim and Julie deliver real-world strategies that actually work. Whether you're looking to scale your business, sharpen your skills, or simply stay ahead of the market, their insights are your competitive edge.
Ready to stop guessing and start producing?
🎯 Start Premier Coaching (free trial): premiercoaching.com
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📲 Elite Coaching — text Tim directly: 512-758-0206
— Tim & Julie Harris
Founders of Tim & Julie Harris Real Estate Coaching | Publishers of Harris Real Estate Daily | Hosts of PowerHouseTalk | eXp Realty Sponsors at Libertas
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