Repairs, a lower price, or a credit?
| What you get | The catch | |
|---|---|---|
| Repairs | The seller fixes it before closing | The seller picks the contractor and the quality |
| A lower price | A smaller loan and lower taxes | No cash in hand for the repair |
| A credit at closing | Money toward your closing costs | Your loan type caps how much the seller can credit |
A credit, also called a seller concession, lowers the cash you bring to closing. That leaves your own savings free for the repair, done by a contractor you chose. Your loan type caps how much the seller can credit you: for most first-time buyers it's 3% to 6% of the price. Conventional loans allow 3% with less than 10% down, 6% with 10% to 25% down, and 9% above that. FHA and USDA loans allow up to 6%. VA loans work differently: the seller can pay all your normal closing costs, plus up to 4% more for extras like your funding fee. A credit can't pay your down payment or be more than your actual costs, and asking for more than the cap doesn't help: the extra has to come off the price instead. Ask your lender for your limit before you ask the seller.
What to ask for
Focus on what's expensive or unsafe: water getting in, the roof, the structure, electrical and gas safety, heating and cooling, plumbing and the sewer line. Leave out the cosmetic: a seller who sees a long list of small things often stops reading.
How to word it
Your agent sends the request to the seller as an amendment to your contract. For each item, give:
- The inspector's finding, in the inspector's own words, with the page number.
- A written quote for the fix.
- The amount you're asking for.
End with the total, as one credit at closing. A clear, quote-backed request is much harder to dismiss than a list of complaints.
If the seller says no
The seller can agree, counter, or refuse. You can accept, counter again, or walk away, but all of it has to happen before your due diligence deadline. If you need more time, you both sign an amendment to extend it. A promise to "work something out" doesn't stop the clock.
Dos and don'ts
check_circleDo
- checkQuote the inspector's own words, with the page.
- checkGet written quotes for the big items.
- checkAsk your lender how large a credit you can take.
- checkLeave a few days for back-and-forth.
cancelDon't
- closePad the list with cosmetic items.
- closeAccept "the seller will fix it" without licensed work and receipts.
- closeLet the negotiation run past your deadline.
- closeAsk for repairs you can't check before closing.
Questions to ask
Your agent and lender
- What's the largest seller credit my loan allows?
- Can we ask for one total credit rather than a list of repairs?
- If the seller counters, how much time will we have before the deadline?
See it on a real home
Our sample report is the founder's own home in Marietta, Georgia. Here is what this step looks like, read for you:
Sample report
Terms on this page
infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.