Credit or repairs. What buyers are asking for after the report

When your inspection report lists a roof leak, unsafe wiring, or a failing system, you have three main ways to ask the seller to address it: a repair, a credit, or a lower price. A repair credit is a common compromise because the seller avoids managing contractors and you control the work, though your loan rules may cap the amount.

The right request turns on what the report says, what your contract allows, and how the change will be handled at closing. A credit, repair, and price reduction affect the transaction differently, so put the agreed terms in writing before deadlines pass.

01The short answer

Many buyers are getting seller concessions, and a repair credit is a popular compromise when both sides want to keep the sale moving. Redfin counted seller concessions, including repair money, closing costs, and rate buydowns, in 44.7% of U.S. sales in the three months ending August 2026, up from 42.6% a year earlier.

The rate varies sharply by market: 72.8% of sales in Atlanta included concessions, compared with 4.2% in San Jose. Those figures show how often sellers contribute, but they do not separate repair credits from other types of concessions.

Clever Real Estate, a brokerage, describes a repair credit as the most popular compromise. The seller skips coordinating contractors, and you choose how to handle the work after closing. There is no national figure showing how often buyers choose credits over completed repairs after an inspection.

A credit still has to fit your loan’s rules and your actual closing costs. If the requested amount exceeds what the loan permits, the parties may need to change the terms or reduce the price.

02Why buyers have leverage right now

**Buyers have room to negotiate when inspection problems threaten a deal, and recent figures show cancellations remain elevated.** Fourteen percent of pending deals fell through in July 2026, the highest share since November 2023.

Redfin links some cancellations to buyers leaving after inspections uncover problems or sellers refuse concessions. In a Redfin survey of 443 agents who handled cancellations, 70.4% cited inspection or repair issues. That figure describes reasons agents reported for cancellations; it does not measure how frequently buyers request repairs or credits across all sales.

The National Association of Realtors’ August 2026 survey found that 20% of buyers waived the inspection contingency and 7% of contracts were terminated. These figures point to a market where inspection findings can shape whether a transaction proceeds, while also showing that many buyers keep inspection protections in place.

Your leverage comes from the contract and the seller’s interest in completing the sale. A report with documented safety, structural, or major-system concerns gives you a clearer basis for a specific request. The seller can agree, counter, or decline, so make the request promptly and follow the deadlines in your contract.

03Repairs, credit or price cut: how each one closes

A credit reduces your closing costs, a repair requires work before closing, and a price cut lowers the purchase amount used for your loan. The option that fits depends on the condition, timing, and lender rules.

A seller credit appears on your Closing Disclosure as a contribution toward closing costs; the Consumer Financial Protection Bureau’s Closing Disclosure guide explains where to review it. A credit does not lower the loan amount by itself, and it cannot exceed applicable loan limits or your eligible costs.

If the seller agrees to make repairs, the work must be completed before closing and documented. Texas guidance calls for licensed or trade professionals, with records of the work scope and payment. In California, invoices and receipts should be available before the final walk-through.

A price reduction lowers the purchase price and, in turn, the loan amount tied to that price. An escrow holdback can address repairs that cannot be finished before closing, if your lender allows it. Confirm the lender’s requirements and the written agreement before relying on a holdback.

04The loan rules that cap a credit

Loan programs limit seller contributions, so a large repair credit may need to be structured as a price reduction. The permitted amount depends on the loan type and, for conventional loans, the loan-to-value tier.

Fannie Mae’s seller-contribution limits are 3%, 6%, or 9%, based on loan-to-value, with a 2% limit for investment property. If the seller’s contribution exceeds your actual closing costs, the excess is deducted from the price.

FHA allows seller contributions up to 6% of the sales price. Its handbook treats a repair allowance as an inducement to purchase, which reduces the price dollar for dollar; see the HUD FHA Single Family Housing Policy Handbook.

For VA loans, seller concessions are capped at 4% of reasonable value, while credits for normal closing costs are not subject to that concession cap. The VA guidance on funding fees and closing costs describes the distinction.

A credit that exceeds program limits or your eligible costs cannot simply be paid to you as unrestricted cash. Ask your lender how the proposed amount will be treated before you and the seller sign an amendment.

05State contract rules: Texas and California

Your contract’s deadlines and forms control the repair request, and Texas and California use different procedures. Check the signed agreement and current forms for your transaction because state and local requirements vary.

In Texas, the TREC resale contract’s option period ends at 5 p.m. local time. If you terminate within the period, your earnest money is refunded, while the option fee is not. The TREC resale contract sets out the option-period terms.

The mandatory TREC 39-11 amendment, effective July 1, 2026, separates a price change, seller repairs, a seller contribution, and a paid option extension. Both parties must sign the amendment before the option period expires. Use the current TREC Amendment to Contract form 39-11, since older references may point to the replaced 39-9 form.

In California, the C.A.R. purchase agreement provides 17 days by default to investigate and send a Request for Repair. The seller does not have to agree to the request or respond. Check your agreement for the applicable deadline and follow its delivery requirements.

06How to ask so it sticks

Make a short, documented request focused on safety, structural, and major-system issues. A focused list helps the seller evaluate the work and gives both sides clearer terms to negotiate.

For each item, identify the report finding and attach a contractor estimate. State whether you are asking for completed work, a seller contribution, or a price reduction. Avoid bundling cosmetic preferences with urgent defects; keep the request tied to the inspection evidence.

Put every agreed change in writing and have both sides sign it. Include the work scope, contribution amount, or revised price, along with any deadline and required paperwork. Check the lender’s approval and contract deadlines before treating the agreement as settled.

Sources (5)

• consumerfinance.gov
• archives.hud.gov
• va.gov
• trec.texas.gov
• trec.texas.gov