After a home inspection in Michigan, buyers and sellers may be able to negotiate repairs, credits, price adjustments, or other solutions depending on the purchase agreement and inspection contingency. The right strategy depends on the condition of the property, the inspection findings, the contract language, current market conditions, and each party's priorities.

Why Inspection Negotiations Matter

I'm Bartley Patterson, REALTOR® and Managing Broker with RE/MAX Classic in Canton, Michigan. Inspection negotiations are one of the most common points where a real estate transaction can become complicated.

Buyers may discover defects they were not expecting. Sellers may feel that a request is excessive. Both sides may have legitimate concerns.

The goal is not simply to “win” the inspection negotiation. The goal is to understand the issue, evaluate the cost and risk, and determine whether there is a reasonable solution that keeps the transaction moving forward.

What Can a Buyer Potentially Negotiate After an Inspection?

Not Every Inspection Item Should Become a Negotiation

Home inspections often produce long reports. That does not mean every item on the report is equally important.

A cracked switch plate and a major foundation concern should not necessarily be treated the same way.

Buyers should usually focus on the issues that materially affect:

• Safety
• Major systems
• Structural conditions
• Water intrusion
• Roofing
• Heating and cooling systems
• Electrical or plumbing concerns
• Significant unexpected costs

What Should Sellers Consider Before Responding?

Sellers should also avoid reacting emotionally to an inspection request.

A request that initially seems frustrating may be relatively inexpensive to resolve. On the other hand, agreeing to a broad request without understanding the cost could create unnecessary expense.

Before responding, I encourage sellers to consider:

Repair vs. Credit: Which Is Better?

There is no universal answer.

Some buyers prefer a repair because they want the issue resolved before closing. Others may prefer a credit so they can select their own contractor or determine how the work will be completed.

Sellers may prefer a credit in some situations because it avoids coordinating contractors before closing. In other cases, completing the repair may provide more certainty.

The answer depends on:

• The nature of the problem
• The cost of the work
• The buyer's financing
• The closing timeline
• The parties' risk tolerance
• What the purchase agreement allows

Can a Buyer Walk Away After an Inspection?

Potentially—but this depends entirely on the inspection contingency and other language in the signed purchase agreement.

Buyers should not assume that an inspection automatically gives them an unlimited right to cancel. Sellers should not assume that a buyer has no options.

Can a Seller Refuse an Inspection Request?

A seller may have the ability to reject some or all of a buyer's request depending on the contract.

But the more important negotiation question is usually not:

“Can the seller say no?”

It is:

That consequence could range from almost nothing to losing the transaction, depending on the contract, the seriousness of the issue, and the buyer's alternatives.

The Market Changes the Inspection Negotiation

Inspection negotiations are also affected by current market conditions.

During a highly competitive seller's market, buyers may be more cautious about making extensive requests because they know other buyers may be available.

When inventory increases and buyers have more choices, sellers may need to approach reasonable inspection requests differently.

This is one reason I believe negotiation strategy should always include current local market information.

A Managing Broker's Perspective on Inspection Negotiations

Frequently Asked Questions About Home Inspection Negotiations

Buying or Selling a Home in Canton or Metro Detroit?

Inspection negotiations can affect both the financial outcome of a transaction and whether the sale reaches closing.

My role is to help clients understand the contract, evaluate the issue, understand the available options, and develop a strategy based on their goals.