Quick Answer
The report is not the last word, it is a starting point. First you review it with your agent and separate the must-fix issues (safety, structural, major systems, moisture) from the nice-to-haves. Then you negotiate, which usually means asking the seller to make repairs, give you a credit at closing, or adjust the deal. You work through all of this inside your inspection contingency window, and if a fair agreement cannot be reached, that same contingency is what lets you walk away with your earnest money protected.
That inspection report can feel like a wall of red flags when you are a first-time buyer. I get it. You just found a great home, and now there is a twenty-page document telling you everything wrong with it. Here is the truth I teach every client: almost every house has something on the report. The goal is never a perfect report. The goal is knowing what actually matters, what is worth asking for, and how far you are willing to go before you walk.
I am a licensed loan officer and a Realtor, and my job is to be on your side through this. This page walks you through the exact process, step by step, the way I guide my own first-time buyers. The contract mechanics and addenda I mention can vary from one transaction and one agent to the next, so lean on your agent for the specific paperwork and dates in your deal. The thinking, though, is evergreen.
First: Read It Like a Buyer, Not an Inspector
In The Essential First-Time Homebuyer Roadmap I tell buyers one thing before they open the report: do not read it line by line as if every item is equal weight. Inspectors are thorough by nature. They flag everything they see, including genuinely minor things, so they are not blamed later for missing something. Your job is to translate that laundry list into what actually matters to you and your money.
Put safety and the big-ticket systems at the top of your attention. Water intrusion, roof problems, foundation movement, electrical and plumbing hazards, and a failing HVAC are the items that cost real money and that you would otherwise inherit. A hairline crack that has not moved, a worn gutter, or cosmetic finishes go near the bottom. If you want the full picture of what the inspector actually looks at and what it costs to run one, start with what a home inspection covers in Texas and what a home inspection typically costs.
Create Your Three Lists
Once you read the whole report once, go back through and split it into three lists. This is the single fastest way to stop feeling overwhelmed and start thinking clearly. It also makes you a much more credible negotiator, because you ask for the things that matter and let the small stuff go. Patrick Teaching
How to Sort the Report
| Must Fix | Should Fix | Can Live With |
|---|---|---|
| Safety hazards (electrical, gas, trip and fall, fire risk) | Roof nearing end of life | Cosmetic finishes and paint |
| Structural or foundation concerns | Older HVAC or water heater | Carpet you plan to replace anyway |
| Water intrusion, roof leaks, mold | Plumbing or electrical repairs you don't want to inherit | Normal wear and tear |
| Anything that threatens the home or your family | Big-ticket items with a short remaining life | Small details you can live with for years |
The "must fix" list is what you fight for. The "should fix" list is what you negotiate on. The "can live with" list is what you let go, because asking for every single dent and scuff makes you look unreasonable and can tank a deal over nickels. If you have not yet wrapped your head around the timeline and the protection your inspection gives you, here is how the inspection contingency works.
How to Ask
This is where your agent earns their keep. You do not call the seller's agent directly and rattle off a wish list. Instead, your agent presents the repair request to the seller's side, often as a formal amendment or addendum to the contract, and always within the window your inspection contingency gives you. Patrick Teaching
The Repair Request, Step by Step
- Prioritize before you ask. Bring your three lists so the request reads intentional, not like a kitchen sink.
- Your agent delivers it. Some requests are written into an addendum or amendment to the contract, presented to the seller and their agent.
- Stay inside the window. The request and the back-and-forth happen within your inspection contingency period, so keep dates on a calendar.
- Expect a response, not a yes. The seller can agree, counter, offer a credit instead, or say no.
A note on Texas mechanics: the exact wording, forms, and addenda used for repair requests vary by transaction, by the contract form in play, and by your agent's process. I am not giving you legal or contract advice here, and I am not telling you the current rule of law. Always have your agent draft and handle the request. Want to know how generous a seller can be, and what a credit versus a price cut actually does to your cash? Here is what you can ask a seller to cover, and here is what else you can negotiate besides price.
Repairs vs Credit vs Price Reduction
There are three main ways the seller can make it right, and each treats your cash and your timeline differently. In The Roadmap I frame it simply: repairs are done by the seller, a credit is money the seller gives you at closing, and a price reduction lowers what you finance. Which one to pick depends on the item and your situation. Patrick Teaching
Seller Fixes It
- Seller completes the repair before closing
- Verification matters, trust but verify
- Great when the fix is clear and specifiable
Seller Credits You
- Dollars applied at closing on your side
- You handle the repair after you move in
- Watch the cap your loan program allows
Lower Price
- Reduces the amount you finance and borrow
- Shrinks your monthly payment a little
- You still pay the repair cost out of pocket
A seller credit is often the smoothest path for smaller, well-understood repairs, because you get the cash at closing and pick your own contractor. A price reduction lowers your loan amount but does not put cash in your hand. A seller-fixed repair is best when you want the work done by a professional before you move in. For more on the credit side of the equation, see what a seller can pay for when you buy.
If the Seller Says No
A "no" is not the end of the road, it is a decision point. You have three real choices, and knowing them in advance keeps you from being bulldozed by a deadline.
- You accept it. If the remaining items fall in your "can live with" list, you move forward, knowing exactly what you are taking on.
- You negotiate further. You counter with a smaller ask, a credit, or a middle ground. Much of real estate is a back-and-forth, not a single yes or no.
- You walk away. If the unresolved items are true must-fixes and the seller will not meet you, your inspection contingency is exactly the tool built for this. It lets you back out, and it protects your earnest money.
That last point matters more than buyers realize. The contingency is not there to scare anyone, it is there to protect you if the home turns out to be a bad idea. For the details on when your deposit is genuinely at risk, see when your earnest money is at risk, and whether you can back out after your offer is accepted.
The Walk-Away Number
Here is the professional habit that saves more first-time buyers than any negotiation tactic. Decide, before the report even arrives, what amount of repair exposure you are willing to accept. Not what you expect, but the maximum you would still take on and be at peace with. That number is your walk-away line. Patrick Teaching
Reality Check
A heavy report can trap you in a money pit if you go in without a plan. Once you are emotionally attached to the house, every new number feels smaller than it is. That is exactly why you write your walk-away number down before the report lands. When the total repair exposure passes your line, you can thank the seller, exercise your contingency, and move on to a home that fits. For the longer version of this thinking, here is how to know when to walk away from a house.
Before You Close: Verify What Was Agreed
Whatever the seller agrees to, the standard I teach is trust but verify. Before you close, the home gets a final walkthrough, and that is your chance to confirm the agreed repairs were actually done, and done properly. Do not skip it. Here is a final walkthrough checklist to bring with you.
Patrick's Take
"The inspection report isn't a verdict, it's a negotiation starter. Sort the musts from the nits, ask smart, and keep your walk-away number handy. Do that and nothing on that report gets to scare you into a bad deal."
Quick FAQ
Who pays for the repairs?
That is the negotiation. Often the seller fixes the must-fix items, gives you a credit at closing, or lowers the price so you can handle the work yourself. If the seller will not cover a true must-fix, you get to decide whether to accept it, push back, or use your contingency to walk away.
Can I ask for anything I want?
You can ask for a lot, but the smart play is to ask for the must-fixes and the big-ticket "should fix" items and let the cosmetic stuff go. A focused, prioritized request is far more likely to be taken seriously than a wish list of every dent and scuff on the report.
What if the seller refuses everything?
You weigh the unresolved items against your walk-away number. If they are true must-fixes and the seller will not budge, your inspection contingency lets you back out and protects your earnest money. If they are tolerable, you can accept and move forward in full knowledge of what you are taking on.
How long do I have to respond to the report?
That is set by your contract and your inspection contingency window. The exact number of days varies by deal, so your agent will put the dates on your calendar. The point is to act quickly, because the negotiation and any backup plans all happen inside that window.