Inspection Negotiation Playbook

The 3-tier triage

Read the inspection report once, then sort every finding into one of three buckets:

1. Safety / structural / system failures. Roof, foundation, electrical hazards, gas leaks, water intrusion, HVAC near end-of-life, polybutylene plumbing, aluminum branch wiring, failed water heater. Ask for repair, credit, or walk.
2. Material defects with documented cost. Settled fence, broken pane, failed seal in window, GFCI not tripping. Bundle into one credit request.
3. Cosmetic / maintenance / "it’s an old house" items. Caulking, paint touchups, dirty filter, missing weatherstripping. Don’t ask. You’ll spend negotiation capital with nothing to show.

Credit vs. repair: choose credit, almost always

• Credit at closing = you control the contractor, timeline, and quality.
• Seller repairs = cheapest-bid handyman the seller can find, often discovered to be incomplete after move-in.
• Only ask for repairs when the lender requires them (e.g., FHA/VA appraisal called out chipping paint, broken handrail) or when the system must be functional at closing (water heater, AC).

What it costs (Texas 2026 averages, for sizing requests)

The negotiation letter that works

Send via your agent on the Amendment to Contract (TXR 1903) — never as a casual email. Three components:

1. Brief framing — "Buyer remains committed to purchase. Inspection identified four material items requiring address."
2. Bulleted list of items with inspector quote + estimated cost from a licensed contractor when available.
3. Single dollar ask as a closing credit. Don’t itemize each repair — bundle.

Five tactical rules

• Never re-open price. Always ask for a closing credit instead — preserves your appraisal and equity position.
• Get one quote in writing for the largest item. Sellers respect documentation more than estimates.
• Don’t ask within 24 hours of contract. Wait until day 4 or 5 of option period so the seller doesn’t see it as buyer’s remorse.
• If seller refuses, walk before option expires. Option fee is the cost of due diligence. Cheap insurance.
• Have your lender pre-vet the credit cap. Excess credits revert to seller. Don’t ask for more than your loan type allows.

What to do if the foundation report is bad

Get a structural engineer’s report ($350–$600) BEFORE asking the seller for anything. If it recommends piers, get one bid from a tier-1 foundation company (Olshan, Childers, Du-West). Then ask for that exact dollar amount as a credit, with a copy of the bid attached. Sellers concede faster to documented numbers.