Should You Make Repairs or Give Buyers a Credit?

One of the most common questions I hear from sellers after receiving an inspection report is:

“Should we fix the problem, or should we give the buyer a credit and let them handle it?”

There isn’t a one-size-fits-all answer.

After more than 29 years in real estate, I’ve learned that the right choice depends on the situation. Sometimes making the repair yourself is the smarter move. Other times, giving the buyer a credit can be much easier—and may actually be the better strategy.

Here’s how I look at it.

When Making the Repair May Make More Sense

Some repairs are worth taking care of before closing, particularly when the issue is relatively straightforward and you can control the quality and cost of the work.

For example, if an inspection identifies something like:

• A plumbing leak
• A broken fixture
• A minor electrical issue
• A damaged handrail
• A small roof repair
• A furnace or HVAC issue that needs attention

…it may make sense to simply take care of it.

One advantage is that you get to choose the contractor and oversee the work.

You also eliminate the uncertainty of the buyer wondering whether the problem was properly addressed.

And sometimes, leaving an obvious repair unresolved can make buyers wonder what else might be wrong with the house.

When a Credit May Be the Better Option

There are other situations where I may recommend negotiating a credit instead.

A good example is a repair that is expensive, complicated, or highly dependent on the buyer’s preferences.

Let’s say an older furnace needs to be replaced.

You could spend thousands of dollars replacing it before closing—but the buyer may have wanted a different system, a different brand, or a completely different approach.

In that situation, a credit may give the buyer more flexibility while allowing you to avoid spending money on something you may not have chosen yourself.

A credit can also be attractive when the seller doesn’t want to coordinate contractors, schedule work, and deal with the uncertainty of getting everything completed before closing.

But There’s Something Sellers Need to Understand

A buyer credit isn’t automatically better than making the repair.

There are rules and limitations surrounding seller concessions, and what can be negotiated can depend on the buyer’s loan type, lender requirements, the contract and the circumstances of the transaction.

That’s why I don’t recommend simply agreeing to a credit without understanding the implications.

And there’s another important consideration:

What does the buyer actually want?

Sometimes a buyer wants the repair completed.

Sometimes they prefer a credit.

And sometimes the inspection issue is significant enough that neither option, by itself, solves the problem.

That’s where having an experienced Realtor negotiating on your behalf really matters.

Don’t Automatically Fix Everything on the Inspection Report

This is something I tell my sellers all the time:

An inspection report isn’t necessarily a “to-do list” for the seller.

An inspection can contain pages and pages of observations, recommendations and maintenance items.

That doesn’t mean you need to fix every single item.

The question is:

Which issues are important enough to address in order to keep the transaction moving forward?

That’s a very different question.

You don’t want to spend thousands of dollars fixing minor items simply because they’re listed in an inspection report.

At the same time, you don’t want to dismiss a significant problem and risk losing a buyer over something that could have been reasonably addressed.

What I Look At When Advising My Sellers

When we’re negotiating inspection items, I look at several things:

1. How significant is the issue?
Is it a safety concern or a minor maintenance item?

2. How much will the repair actually cost?
The buyer’s requested amount isn’t necessarily the same as the actual cost.

3. Is the repair something the seller can reasonably complete?

4. Would a buyer credit make more sense?

5. How important is this issue to the buyer?

6. What does the current market look like?
Negotiating in a highly competitive market can be very different from negotiating when buyers have more leverage.

7. How much is at stake?
Sometimes spending a reasonable amount to keep a transaction together makes far more sense than starting over.

Don’t Let Emotion Take Over

This is one of the hardest parts for sellers.

You may have lived in your home for 10, 20 or 30 years and never had a problem with something the buyer’s inspector has identified.

It can feel frustrating when a buyer asks you to address it.

But the goal isn’t to “win” the inspection negotiation.

The goal is to successfully close the sale while protecting your interests.

Sometimes that means saying no.

Sometimes it means making the repair.

Sometimes it means offering a credit.

And sometimes it means finding a compromise that works for everyone.

So Which Is Better: A Repair or a Credit?

The honest answer is:

It depends.

There are times when I would absolutely recommend making the repair. There are other situations where I’d rather negotiate a credit. And sometimes I would recommend doing neither.

The important thing is not to make the decision based solely on emotion or on what the buyer is demanding.

Look at the cost, significance of the issue, buyer’s priorities, financing requirements, market conditions and likelihood of getting to closing.

After more than 29 years in real estate, I’ve learned that successful negotiations aren’t about automatically giving the other side what they want.

They’re about understanding what matters, what doesn’t, and where there’s room to negotiate.

Thinking About Selling?

If you’re preparing to sell your home, don’t wait until you receive an inspection report to start thinking about repairs.

An experienced Realtor can help you determine which repairs are worth making before you list, which issues you can leave alone, and how to approach inspection negotiations once you have a buyer.

The goal isn’t to spend the most money. It’s to make smart decisions that help you get to the closing table.