Your FSBO Guide to Smart Negotiations and Smooth Closings
One of the most common (and sometimes stressful) moments in a For Sale By Owner (FSBO) home sale happens right after the home inspection: the repair request. The buyer’s inspector may uncover issues ranging from small maintenance items to major structural concerns — and most buyers will ask you to fix some of them, offer a credit, or renegotiate the price.
For first-time FSBO sellers, this part of the process can feel overwhelming. Should you agree to everything? Refuse the requests? Meet in the middle? The truth is, repair negotiations are normal and expected — and how you handle them can make the difference between a deal that closes smoothly and one that falls apart.
This guide will walk you through exactly how to navigate repair requests confidently, protect your bottom line, and keep your sale on track.
🧰 1. Why Buyers Make Repair Requests
The purpose of a home inspection isn’t to create a “perfect” home — it’s to give buyers a clear picture of the property’s condition. Based on what the inspector finds, buyers will often request repairs for three main reasons:
- 🛠️ Safety or code concerns: Electrical hazards, gas leaks, or missing handrails.
- 🧱 Structural or functional issues: Roof damage, plumbing leaks, foundation cracks.
- 🧽 Maintenance or longevity: HVAC nearing the end of its life, worn-out water heater, or deteriorated siding.
It’s important to remember: most buyers expect some issues to come up — even newer homes have inspection findings. The key is to focus on what’s reasonable and necessary, not every little cosmetic flaw.
💡 Pro Tip: Emotional reactions often derail negotiations. Treat repair requests as part of the business process, not as a personal critique of your home.
🧾 2. Reviewing the Inspection Report
Once the inspection is complete, the buyer’s agent (or the buyer directly, in a FSBO sale) will send you a copy of the inspection report and a list of requested repairs or concessions.
Start by reviewing the list carefully and separating issues into categories:
- ✅ Safety or code-related issues: These are almost always worth addressing to keep the deal moving.
- 🧱 Major system or structural concerns: These can be negotiated but often need to be resolved.
- 🛠️ Minor or cosmetic issues: These are typically negotiable — and often optional.
Ask yourself:
- Which items are legitimate concerns that would worry any buyer?
- Which are maintenance issues that could be addressed through a credit instead of actual repairs?
- Which are “nice-to-have” requests you may choose not to accept?
💡 Pro Tip: If you’re unsure about the severity of a repair request, consult a contractor for a second opinion. A professional estimate gives you leverage in negotiations.
🤝 3. Your Options as a Seller
As the seller, you have several options when responding to repair requests. The best choice depends on the nature of the issues, the buyer’s expectations, and how much you want to keep the deal alive.
🔧 Option 1: Make the Repairs
The most straightforward option is to simply agree to complete the requested repairs before closing. This is especially common for safety, code, or structural issues — and doing so can reassure the buyer that they’re purchasing a well-maintained home.
Tips if you choose this option:
- Hire licensed contractors for any significant work.
- Keep receipts, invoices, and warranties as proof.
- Provide documentation to the buyer once work is completed.
💡 Pro Tip: Making key repairs often strengthens buyer confidence and reduces the chance of last-minute issues during the final walk-through.
💵 Option 2: Offer a Credit at Closing
Sometimes it’s easier — and more cost-effective — to offer the buyer a credit at closing rather than making the repairs yourself. This approach lets the buyer choose their own contractors and handle repairs on their schedule.
Advantages of offering a credit:
- Avoids delays caused by scheduling repairs.
- Gives buyers control over how the work is done.
- Can often be negotiated for less than the repair’s full cost.
Example:
If the buyer requests $4,000 in roof repairs, you might offer a $2,500 closing credit instead. Many buyers will accept this compromise.
🏷️ Option 3: Renegotiate the Purchase Price
If the requested repairs are extensive or costly, you can propose lowering the overall purchase price instead of doing the work. This is often used when:
- The buyer’s financing allows for a price reduction but not a repair credit.
- Repairs involve larger issues like foundation work or full system replacements.
This approach can be a win-win: the buyer gets a lower price, and you avoid the hassle of managing repairs.
✋ Option 4: Refuse the Requests
You’re not obligated to accept every repair request. If the items are purely cosmetic, overly demanding, or unreasonable, you can politely decline.
However, be prepared for potential consequences: the buyer might accept the home as-is, counteroffer with new terms, or, in rare cases, cancel the deal if the inspection contingency allows it.
💡 Pro Tip: Use refusal strategically — it’s best reserved for minor issues or when you have strong confidence another buyer will pay the same price without those demands.
🧠 4. Negotiation Tips for FSBO Sellers
Negotiating repairs is part art, part strategy. Here’s how to keep the process smooth and fair — without sacrificing your bottom line.
📊 Tip 1: Focus on the Big Picture
It’s easy to get hung up on small requests, but remember: losing a sale over a $300 repair can cost far more in time, stress, and carrying costs.
🤝 Tip 2: Be Willing to Compromise
Buyers usually expect some give-and-take after the inspection. Meeting halfway on repair costs or offering a modest credit often keeps the deal intact.
🛠️ Tip 3: Prioritize Safety and Code Issues
If an inspector identifies something that affects safety — like faulty wiring or a gas leak — address it. These are the types of issues that can kill a deal (or cause legal issues later) if ignored.
📄 Tip 4: Document Everything
If you agree to repairs, always get them in writing — either as an addendum to the purchase agreement or a signed statement. Provide documentation of completed work to the buyer.
💡 Tip 5: Use Professional Estimates
If a buyer claims a repair will cost $10,000 but your contractor quotes $4,500, you have solid grounds to negotiate a smaller credit or partial price reduction.
⚠️ 5. Common Mistakes FSBO Sellers Make With Repair Requests
- ❌ Taking it personally: Remember, the inspection isn’t a judgment — it’s due diligence.
- ❌ Ignoring legitimate issues: Refusing to fix serious problems can scare buyers away.
- ❌ Failing to document agreements: Verbal promises won’t hold up if disputes arise.
- ❌ Doing subpar repairs: Cutting corners on quality can lead to failed final walk-throughs.
- ❌ Waiting too long to respond: Delays can frustrate buyers and jeopardize the deal.
📜 6. What Happens If You Can’t Reach an Agreement
In most cases, sellers and buyers find a middle ground — but if negotiations stall, the buyer may choose to walk away (if the inspection contingency allows). While this is rare, it’s important to understand your options:
- Re-list the home and disclose the issues honestly to future buyers.
- Make the repairs yourself and relist at the same or higher price.
- Adjust your price to reflect the property’s condition.
💡 Pro Tip: If a deal falls apart, use the experience as valuable feedback. Most inspection-related cancellations happen because sellers underestimate how much buyers expect to negotiate — or resist compromise entirely.
🏁 Final Thoughts: Flexibility and Strategy Win the Day
Handling repair requests is one of the most important negotiation points in a FSBO sale. It’s where you and the buyer work together to align expectations — and it’s often the deciding factor in whether the sale moves forward or falls apart.
The key is to approach this stage calmly, professionally, and strategically. Focus on significant issues, be willing to compromise, and always document any agreements. By doing so, you’ll not only protect your bottom line — you’ll also keep your sale moving confidently toward the finish line.