What a home inspection report actually is

When a buyer's inspector finds a defect, it goes into the report. That report is a communication tool between the inspector and the buyer. It is not a legal document listing mandatory repairs. It is information. What the buyer and seller do with that information is a negotiation, not a foregone conclusion.

The inspection happens during the condition period, typically seven to ten days after an offer is accepted. The buyer's agent then uses the report as the basis for what are called "inspection requests" or "repair requests." These requests are exactly that. Requests. Not demands. The seller can respond by agreeing to fix items, paying the buyer a credit toward repairs, or declining entirely.

The categories of defects

A smart response starts by categorising the defects. Some things are safety issues. A gas furnace leaking carbon monoxide, an electrical panel with code violations, or a roof that is actively leaking fall into this category. If the defect creates a genuine safety risk, most sellers will address it because the alternative is liability and the difficulty of closing.

Other things are condition issues. The kitchen is outdated, the bathroom needs updating, the flooring is worn. These are real, the buyer knows about them, and the buyer already negotiated on price knowing they existed. The fact that the inspection confirmed the obvious is not a reason to pay to fix it again.

Then there are maintenance items that are the buyer's responsibility after closing. A window seal is failing, a deck stain is weathering, caulking needs refreshing. These are normal wear and tear. The house is being sold in its current condition and these minor items do not change that.

The negotiation itself

When repair requests arrive, read each one carefully. For safety issues, answer seriously. For obvious maintenance items that are the buyer's responsibility, a professional response is to say no. For items that fall somewhere in between, estimate the actual cost to fix.

If the inspector estimated a $2,000 roof repair and you know it is actually $400, get a quote and show it to the buyer. If the buyer requested $5,000 off the price to account for a repair you can actually fix for $1,200, offer to fix it for that cost instead. Transparency and specificity move negotiations forward.

Some buyers will accept partial credit. Others will insist on fixes. Some will even walk away if their inspection concerns are not addressed. That is their right. But the starting point is not that you must fix everything. The starting point is that you are negotiating what, if anything, gets fixed before closing.

What you cannot refuse

The law and your mortgage lender impose some limits. If a defect makes the home dangerous or uninhabitable, you may not legally be able to refuse repairs. If your lender or your title insurance company identifies a defect that must be fixed, you may not have the option to decline.

These situations are rare. Most homes have minor defects. Most inspection reports are manageable with straightforward negotiation.

The cost of refusing everything

If the inspection uncovers defects and the buyer asks for repairs, refusing every request sends a message. It signals that you have something to hide or that you do not care about the buyer's concerns. Either impression can spook a buyer who is already uncertain. In a market where there are competing homes, that uncertainty can mean a withdrawn offer.

On the other hand, agreeing to everything sends a different message. It says you are cooperative and the home is well-maintained. Those impressions matter psychologically even if the actual repairs are minor.

The sweet spot is usually to fix the genuine safety and functionality issues, offer credit for the maintenance items the buyer should handle themselves, and hold firm on items that are clearly just cosmetic preferences.

Get it in writing

If you agree to repair something before closing, specify exactly what that repair is, who will do it, and what standard it will meet. "Fix the roof" is not specific enough. "Replace the three shingles on the west side of the roof that are missing, to match the existing shingles" is. Your inspector or a contractor should confirm the work is done to that standard after completion.

Do not let repairs carry over to after closing. Anything that has not been completed on closing day should be left in the hands of a third party. Your lawyer can hold back funds from the purchase price to cover the repair, or the buyer can allow you to hire a contractor and pay them directly. But "I will fix it after you close" is a promise most buyers will not accept.

If you want advice on how to respond to an inspection report, call me at 416-560-4983.