LarryShakman.com · Video Guides & Practical Answers
Inspection negotiation guide · Chicago metropolitan area

How should we handle inspection issues?

Larry Shakman with his signature, Real Estate Broker and Title Agent

Updated October 9, 2026

Start with the facts, then decide what solution makes sense. An inspection report can feel overwhelming. The number of items is only part of the picture: what matters is the nature of the concerns, what further evaluation is needed, and how the findings affect the transaction. Buyers and sellers need a practical response that respects the contract and their goals.

Watch Larry’s explanation

Captions are included.

Ten steps for working through inspection issues

01

Read the findings before reacting

Let’s review the report and photographs together. Identify what the inspector observed, what was not inspected, and where a specialist evaluation is recommended.

02

Understand what the inspection covers

A home inspection generally evaluates visible, accessible systems and components within the agreed scope. It does not reveal every concealed condition. Ask the inspector to explain limitations and follow-up recommendations.

03

Separate significant concerns from routine upkeep

Organize the findings around safety, major systems, active damage, maintenance, and cosmetic preferences. This helps focus the conversation without dismissing an issue simply because it looks small.

04

Clarify uncertain findings

A note calling for further evaluation is not the same as a confirmed diagnosis or a repair estimate. Bring in an appropriate qualified professional where more information is needed.

05

Get estimates that describe the actual work

When practical, obtain written estimates for the identified concern. Compare the scope of work as well as the price so the negotiation is based on something more useful than a guess.

06

Review the contract and deadlines

I’ll work with your attorney to review the inspection provisions, notice requirements, and response deadlines. Do not assume that every contract gives the same rights or that an informal conversation extends a deadline.

07

Compare repairs with other solutions

Depending on the agreement and financing, options may include a repair, a negotiated credit, or a price adjustment. Consider the work, timing, cost, and each party’s preferences before choosing.

08

Make any repair agreement specific

Clarify what work will be completed, by whom, when it will be finished, and what documentation or verification is expected. Have agreed terms properly documented through the transaction team.

09

Keep financing and closing arrangements in view

Before relying on a credit or other change, confirm that it works with the lender and closing arrangements. Some condition concerns may require work before closing rather than a different financial term.

10

Evaluate the full outcome

Consider the concern, the proposed resolution, costs, timing, and your alternatives. A thoughtful compromise may keep a transaction moving, but it should be one you understand and can accept.

An inspection is a starting point for a conversation

The report provides information about the property. It does not automatically determine what the seller must repair or what the buyer must accept. Those decisions depend on the contract, the findings, negotiations, and any financing requirements. I’ll help you work through the findings and options, with your attorney explaining how the contract applies to your situation.

A practical example: clarify the problem before negotiating

Illustrative example: An inspector notes signs of moisture near a plumbing connection and recommends further evaluation. The buyer is concerned about a large repair bill, while the seller believes the issue is minor.

An appropriate professional can investigate the source and explain the needed work. With a clearer scope and estimate, both parties can compare a repair or another permitted solution. The response should follow the contract’s deadlines and be documented; neither side should have to negotiate from an unverified assumption.

A practical inspection response checklist

The buyer does not necessarily have to provide the full inspection report, but in my experience usually will if requested. Report-sharing requirements depend on the purchase contract, including any requirement for a written request. I’ll coordinate with your attorney to help you follow the applicable provisions.

Common questions

Does the seller have to fix everything in the report?

Do not assume so. An inspection finding is not automatically a repair obligation. I’ll review the purchase contract with you and your attorney so we can distinguish existing obligations from requests that require agreement.

Is a credit better than a repair?

Neither is automatically better. Compare the issue, timing, quality of work, financing, and your preferences. Confirm that any proposed credit is permitted and properly documented before relying on it.

Can a home warranty replace addressing an inspection concern?

Offering a one-year home warranty can be an economical way to help smooth over some inspection concerns. It does not establish that an identified defect is covered or resolved. Review the actual coverage, exclusions, and the underlying concern before treating it as a solution.

Can the buyer cancel because of the inspection?

The short answer is yes—if the contract provides that right and the buyer meets the applicable conditions and deadlines. I’ll work with your attorney to help you understand any applicable contingency, notice requirements, and deadlines before you decide how to proceed.

Buying a home?

Tell me your preferred areas, budget, must-haves, and timing so we can start a personalized search.

“Your Marketing Matters”

Before you make your next move…

Let’s review the inspection concerns, gather the information needed, and work with your transaction team toward a solution that fits your goals.

Straightforward answers. Smart solutions. Real results.

Further reading: ASHI inspection scope · CFPB guidance on inspections and repair negotiations.

What’s Your Home Worth?Ask Larry for an inspector introduction

About Larry

Larry Shakman is a Chicago-area Real Estate Broker, Title Agent, Consultant, and author of The Top 10’s of Real Estate. His more than 25 years in real estate include hundreds of millions of dollars in sales and 1,000+ transactions.

Connect with Larry

@Home Realty Group, Inc
Real estate brokerage@Home Realty Group, Inc
@Home Title Services
Title services@Home Title Services