Published: May 20, 2024 | Closer Look Home Inspectors · InterNACHI Certified · Mankato, MN

Negotiating Repairs After a Home Inspection

By Closer Look Home Inspectors | (507) 721-3820

You received your home inspection report, and it lists several issues. Now what? For buyers in the Mankato area, understanding how to effectively negotiate repairs is crucial to protecting your investment without derailing the deal. Here is a practical guide based on our years of experience inspecting homes across Blue Earth County and southern Minnesota.

Step 1: Categorize the Findings

Not every inspection finding warrants a repair request. Organize issues into these categories:

• Safety hazards: These are non-negotiable. Electrical deficiencies, missing GFCI protection, carbon monoxide risks, structural concerns, and fire hazards should always be addressed.
• Major defects: Issues that cost $500 or more to repair and affect the home's function or value. Examples include a failing roof, foundation movement, HVAC system replacement, or major plumbing problems.
• Maintenance items: Normal wear and minor repairs that any homeowner would eventually address. Peeling paint, worn weatherstripping, and minor caulking gaps fall here.
• Cosmetic issues: Scratched floors, dated wallpaper, or scuffed walls are not inspection issues and should not be part of repair negotiations.

Step 2: Focus Your Repair Request

The most effective repair requests focus on 3 to 5 significant items rather than a laundry list of 30 minor issues. Sellers in the Mankato market respond better to reasonable, prioritized requests. Common high-priority items in southern Minnesota homes include:

• Roof repairs or replacement when significant damage or age is documented
• Foundation repairs for structural cracks or water intrusion
• Electrical panel upgrades for outdated or recalled brands
• Furnace replacement when the system is past its expected lifespan
• Radon mitigation when levels exceed 4.0 pCi/L
• Sewer line repairs identified through sewer scope inspection

Step 3: Decide Between Repairs and Credits

You have two main approaches when negotiating:

Asking for Repairs

The seller hires contractors and completes repairs before closing. This works best for simple, clear-cut fixes. The risk is that sellers may choose the cheapest option rather than the best quality.

Asking for a Credit or Price Reduction

The seller provides money at closing or reduces the purchase price. This approach gives you control over the repair quality and contractor selection. For larger issues, this is usually the better option.

Negotiation Tips for the Mankato Market

The Mankato housing market has its own dynamics that affect negotiations:

• In a seller's market: Keep requests focused on safety and major defects only. Overreaching may cause the seller to reject your request or choose a backup offer.
• In a buyer's market: You have more leverage to negotiate both major and moderate repairs.
• For older homes: Expect more findings. Focus on items that are genuinely deficient rather than simply outdated. A home built in the 1950s will not meet current building codes, and that is normal.
• Get repair estimates: Providing actual contractor quotes strengthens your position by showing the seller exactly what repairs cost.

What NOT to Negotiate

• Cosmetic preferences (paint colors, carpet style, fixture choices)
• Normal wear on a home appropriate to its age
• Items that were visible before your offer (you agreed to buy the home knowing about them)
• Code compliance issues in a home built before current codes (unless they are safety hazards)

When to Walk Away

Sometimes the inspection reveals problems that exceed your budget or risk tolerance. Major foundation failure, extensive mold contamination, significant structural damage, or environmental hazards may warrant using your inspection contingency to exit the purchase. Your real estate agent and inspector can help you assess the severity.

Have questions about your inspection report? Call Closer Look Home Inspectors at (507) 721-3820. We are always available to discuss our findings and help you understand repair priorities.