Can a Seller Refuse to Make Repairs? Understanding Your Options as a Buyer

The Seller’s Right to Refuse Repairs

When purchasing a home, it’s common for buyers to request repairs after a home inspection reveals issues. However, sellers have the right to refuse these requests. This can leave buyers wondering about their options and how to proceed.

While sellers can refuse to make repairs, this decision may have consequences for the sale. Buyers typically have contingencies in their purchase agreements that allow them to back out of the deal if certain conditions aren’t met. One of these is often an inspection contingency, which gives buyers the right to request repairs or cancel the contract based on inspection findings.

What Happens When a Seller Refuses Repairs?

If a seller refuses to make requested repairs, buyers generally have three main options:

Accept the property as-is
Negotiate further
Walk away from the deal

In many cases, if the seller refuses to make repairs and the buyer decides not to proceed, the buyer is entitled to a refund of their earnest money deposit. This is typically outlined in the purchase agreement’s contingencies.

Negotiating Alternatives to Repairs

When sellers refuse to make repairs, buyers can consider alternative negotiations:

Request a price reduction to cover repair costs
Ask for repair credits at closing
Propose a home warranty to cover potential future issues

These alternatives can help both parties reach a compromise without the seller directly handling repairs.

When Repair Costs Exceed Expectations

Sometimes, inspection reports reveal extensive issues that significantly increase the cost of necessary repairs. In such cases, many purchase agreements allow buyers to withdraw from the deal without penalty if repair costs exceed a certain threshold.

This protection ensures that buyers aren’t locked into purchasing a property that requires unexpectedly expensive repairs. It’s crucial to review your purchase agreement carefully to understand your rights in this situation.

Protecting Your Interests as a Buyer

To safeguard your interests when dealing with potential repair issues:

Work with an experienced real estate agent
Ensure your purchase agreement includes appropriate contingencies
Get detailed estimates for any necessary repairs
Consider the long-term costs of owning the property, including potential repairs

Remember, while it can be frustrating when a seller refuses repairs, it’s essential to approach the situation objectively and consider your overall goals in purchasing the property.