Dispositions

My cash buyer wants a repair credit after the inspection, what now?

When a cash buyer requests a repair credit after the inspection, it means he or she has identified issues beyond what was initially expected or priced into the offer. Your next steps involve verifying the legitimacy of the request and deciding whether to negotiate, hold firm, or walk away, based on your deal's margin and other interested parties.

October 31, 2026 · 3 min read

Verify the repair credit request

The first thing to do is carefully review the inspection report and the buyer's specific requests. Compare the noted defects against what you already knew or factored into your asking price. Some buyers will submit a full list of every minor issue, while others will focus on significant, unexpected problems.

Ask the buyer for detailed estimates from reputable contractors for the requested repairs. This helps you determine if the figures are realistic or inflated. Do not accept a general demand without specific justification and cost breakdowns for each item.

Evaluate the impact on your profit

Once you have a clear understanding of the requested credit and its basis, immediately assess how it impacts your projected profit. Subtract the requested amount from your assignment fee. If the deal still makes sense for you, you have room to negotiate.

If the credit eats too much into your margin, you need to decide your minimum acceptable profit. This figure will guide your counter-offer or your decision to refuse the request entirely. Always know your bottom line before you respond.

Negotiating the repair credit amount

You have several options when negotiating. You can agree to the full credit, offer a partial credit, or reject the request outright. Often, a counter-offer for a slightly reduced credit is a good starting point, especially if the buyer's initial request seems high. Focus on the most significant, genuinely unexpected issues.

Alternatively, you might suggest a different solution, such as taking responsibility for only a few key repairs rather than giving a blanket credit. Communicate clearly and calmly, explaining your position based on the property's as-is condition or your existing profit margins.

Considering other cash buyers

If the buyer's request is unreasonable or if you have a tight margin, consider whether you have other interested cash buyers on your list. If you have a backup buyer or multiple potential buyers, your negotiating position is stronger. You can politely decline the request and move on if necessary.

Before you commit to walking away from the current buyer, gauge the interest and readiness of your backup options. Re-engaging other buyers takes time, and you need to be confident they can close quickly and on acceptable terms.

Documenting the agreed-upon credit

Any agreed-upon repair credit must be documented as an addendum to the assignment contract. This addendum should clearly state the amount of the credit, how it will be applied (e.g., as a reduction in the assignment fee or a credit at closing), and that all other terms of the original contract remain in effect.

Ensure both you and the buyer sign and date the addendum. This protects both parties and prevents any misunderstandings at closing. Without clear documentation, an oral agreement is not enforceable.

Questions people ask

Should I always give a repair credit?

No, you should not always give a repair credit. Evaluate each request based on the legitimacy of the repairs, their cost, and how it impacts your deal's profitability. Sometimes, holding firm is the right move.

What if the buyer’s repair estimate is too high?

If the estimate seems inflated, request multiple bids from his or her contractors or suggest getting your own estimates for comparison. Use these more realistic figures as a basis for your counter-offer.

Can I offer to do the repairs myself instead?

You can, but it's usually not advisable for an assignment deal. Your role is to assign the contract, not manage repairs. Offering to do repairs adds risk and complexity that is typically the buyer's responsibility after closing.