The inspection report is where a lot of deals get re-negotiated - and where buyers either protect themselves or overplay their hand. Knowing when to ask for repairs, when to ask for a credit, and what's actually reasonable is the difference between a fair adjustment and a dead deal.
Your three levers: repairs, credits, price
When the inspection reveals problems, you generally have three ways to respond:
- Request repairs. Ask the seller to fix specific items before closing. Best for safety issues you want resolved by someone other than yourself, but you're relying on the seller's choice of contractor and timing.
- Request a credit. Ask for a credit toward your closing costs so you can handle repairs yourself after closing. Often the cleanest path - you control the work and the contractor, and there's no scramble to complete repairs before close. (Credits can be subject to lender limits, so confirm with your loan officer.)
- Request a price reduction. Lower the purchase price to reflect the cost of the issues. Useful for larger-ticket items, though it changes your loan amount and may interact with the appraisal.
Many buyers favor credits because they keep control of the repair and avoid disputes about whether the seller's fix was done well.
The C.A.R. Request for Repairs
In California, you make this ask in writing - commonly using the C.A.R. Request for Repairs (RR) - while your investigation/inspection contingency is still active. This is critical: the leverage to negotiate repairs lives inside that contingency window. Submit a clear, specific request tied to the inspection findings, and keep your timelines in view. Once you remove the inspection contingency, your negotiating position weakens substantially.
What's reasonable to ask for
The fastest way to lose a seller's goodwill - or the deal - is to treat the inspection like a renovation budget. Reasonable requests focus on:
- Health and safety issues (electrical hazards, gas leaks, major plumbing failures, structural concerns).
- Material defects and systems at or past end of life (roof leaks, failing HVAC, water intrusion).
- Things that genuinely surprise you and weren't reflected in the price or disclosures.
Less reasonable: cosmetic items, normal wear and tear, minor maintenance, and upgrades you simply prefer. Remember the home's overall condition is usually already baked into the price you offered. Asking for everything signals an unrealistic buyer and invites the seller to dig in - or walk.
The seller's response options
The seller isn't obligated to agree to your requests. They can:
- Agree to all of them.
- Counter - offer to do some items, or offer a credit instead of repairs.
- Decline entirely, betting you'll proceed anyway.
Their leverage depends on the market and on how many other buyers are waiting. In a competitive situation, a seller may decline knowing they have backups. In a slower market, sellers are usually more accommodating. A seller can also serve a Notice to Perform if you're stalling past your contingency deadline.
As-is, disclosures, and your inspection rights
Even if a home is listed as-is, you still get to inspect it in California, and the seller's statutory disclosure duties don't disappear - they must still disclose known material defects, and the Transfer Disclosure Statement can't be waived. An as-is listing mainly signals the seller's reluctance to do repairs; it doesn't strip your right to investigate or to cancel under an active inspection contingency if you find something serious. (We cover this in detail in our as-is negotiation guide.)
Brian's approach is to separate the real issues from the noise, get repair-cost estimates where they matter, and frame a focused, credible request the seller can say yes to - usually leaning toward a credit so you control the outcome. The goal isn't to nickel-and-dime; it's to make sure the price reflects the home's true condition and that you're protected while your inspection contingency is still active.
Disclaimer
Brian Cooper is a licensed REALTOR® with eXp Realty, not an attorney. This article is general information about California real estate practice and negotiation - it is not legal, tax, or financial advice, and it is not a substitute for advice from a qualified California real estate attorney about your specific situation. Real estate practice, market conditions, and the California Association of REALTORS® (C.A.R.) standard forms change over time; always confirm the current version of any form and its exact terms before you rely on it. Nothing here creates an agency relationship. All real estate commissions and contract terms are fully negotiable and are not set by law. Equal Housing Opportunity.
Frequently Asked Questions
Should I ask for repairs or a credit after inspection?
It depends, but credits are often the cleaner choice: you get a credit toward closing costs and control the repairs (and contractor) yourself after closing, avoiding disputes over the quality or timing of the seller's work. Repairs make sense for safety items you want resolved before you own the home. Credits can be subject to lender limits, so confirm with your loan officer.
What is the C.A.R. Request for Repairs?
It's the standard California form buyers use to ask the seller, in writing, to address inspection findings - whether through repairs, a credit, or a price adjustment. You submit it while your investigation/inspection contingency is active, which is where your negotiating leverage lives.
What repairs is it reasonable to ask a seller to make?
Focus on health and safety issues and material defects - electrical hazards, major plumbing or structural problems, roof leaks, failing systems - especially items that genuinely surprised you. Cosmetic fixes, normal wear, and upgrades you simply want are generally unreasonable and can sour the negotiation.
Does the seller have to agree to my repair requests?
No. The seller can agree, counter (offering some repairs or a credit), or decline entirely. Their willingness depends heavily on the market and whether they have backup offers. If you can't reach agreement, your active inspection contingency generally lets you cancel and recover your deposit.
Can I still negotiate repairs on an 'as-is' home?
Yes. As-is signals the seller prefers not to do repairs, but in California you still get to inspect, and you can still request credits or a price reduction. The seller's duty to disclose known material defects also remains, and the Transfer Disclosure Statement can't be waived in an as-is sale.
When does my leverage to negotiate repairs end?
Largely when you remove your inspection contingency. Until then, an unresolved request can support cancelling and recovering your deposit. Once you remove the contingency, you've signaled you accept the condition, and your ability to push for repairs drops sharply - so don't remove it until the repair conversation is resolved.
