The inspection comes back and the roof needs replacing. You have three ways to get paid for that: the seller fixes it, the seller gives you a credit, or the seller cuts the price. They are not the same, and the one most buyers reach for first is usually the worst one. Here is how I decide, with two 2026 San Gabriel and San Fernando Valley examples.
The three options
| Seller repairs it | Repair credit | Price reduction | |
|---|---|---|---|
| Who picks the contractor | Seller | You | You |
| Your cash at closing | No change | Goes down | No change |
| Your loan amount | No change | No change | Goes down |
| Your monthly payment | No change | No change | Goes down slightly |
| Lender limits | None | Capped (3–9% of price) | None |
| Quality of the work | Cheapest bid the seller can find | Your choice | Your choice |
I almost never recommend letting the seller do the repair. A seller who is leaving has no reason to hire the good roofer. A credit or a price cut puts the decision in your hands.
Credit vs. price reduction: which one
A credit lowers the cash you bring to closing. On a $850,000 purchase with 20% down, a $20,000 credit means you write a check for $20,000 less. That is money you then spend on the roof. The lender has to allow it, and it is capped as a percentage of price.
A price reduction of $20,000 lowers your loan by $16,000 (80% of it) and your down payment by $4,000. Your payment drops by roughly $100 a month at current rates. But your cash at closing only drops by $4,000, and the roof still needs paying for. If you are tight on cash, a price cut does not solve your problem; a $20,000 credit puts five times as much back in your pocket at closing.
Rule of thumb: short on cash, take the credit. Flush on cash, take the price cut. Need more than the lender’s credit cap, take both.
Example A: Covina, roof and pest, $20,000 credit
| List price | $850,000 |
| Inspection findings | Roof at end of life; pest remediation |
| Negotiated | $20,000 credit (about 2.35% of list) |
Two findings, two contractor bids, one request. The roof bid alone justified the number; the pest report made it hard to argue. The buyer chose a credit over a price reduction because they needed the cash at closing more than the small payment difference. They hired their own roofer after close.
Example B: Canoga Park, termite damage
A roughly $1.09 million Canoga Park listing came back with termite damage that required repair, not just treatment. The seller agreed to a credit toward the repairs. In California the termite report (the “Section 1” items) is one of the few inspection items sellers expect to pay for, so the conversation is usually about the amount, not whether.
How to run the inspection negotiation
- Inspect everything in the first week. General, termite, sewer scope, roof. In older LA housing stock the sewer scope and the roof are where the money is.
- Get written bids on anything that needs repair, affects your quiet enjoyment, or could be hazardous to your health. The request should read like an invoice, not a complaint.
- Ask for one number. Sellers respond better to a single documented figure than a list of twelve small items.
- Decide credit vs. price before you ask. Know your lender’s credit cap and your cash position.
- Keep your contingency until it’s signed. The request for repair is leverage only while you can still walk.
Questions buyers ask
Can I ask for repairs after my inspection contingency expires?
You can ask; the seller can say no and you have no way to cancel without losing your deposit. Make the request before the contingency deadline.
Does the seller have to fix anything in California?
No. The standard California purchase agreement sells the home “as is.” Repairs and credits are negotiated, not required. The seller does have to disclose known defects.
Will my lender let me take a repair credit?
Lenders allow credits toward closing costs, capped by loan type and down payment. They generally do not allow a credit labeled as “repairs.” The fix is to call it a closing-cost credit and do the repair after you own the home.
What if the repair costs more than the credit cap?
Combine a credit up to the cap with a price reduction for the rest, or ask the seller to complete the specific repair with a contractor you approve before closing.
Examples are from purchases I represented as the buyer’s agent; figures are rounded, and the Canoga Park list price and credit amount are approximate. No client names or addresses are published. Before writing an offer, request an Optics report on any home.
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