What Types of Home Repairs Are Required Before Closing? (w/Examples) + FAQs

The only repairs absolutely required before closing are those mandated by the buyer’s mortgage lender or, in rare cases, by state or local law. The central conflict in pre-closing negotiations arises from the Federal Housing Administration’s (FHA) Minimum Property Standards (MPS), which demand a home be “safe, sound, and secure” before a loan is approved. This rule directly clashes with a seller’s desire to sell “as-is,” often forcing them to perform repairs or kill the deal, as a staggering 86% of home inspections uncover at least one issue needing a fix.¹

This guide will break down the complex world of pre-closing repairs into simple, actionable steps. You will learn exactly what to expect and how to navigate this critical phase of buying or selling a home.

🔍 Understand the True “Requirements”: Learn why the lender, not the buyer or seller, holds the ultimate power and what specific safety and structural issues they look for.
💰 Master the Three Negotiation Outcomes: Discover the pros and cons of asking for repairs, a closing credit, or a price reduction, and which one almost always benefits the buyer most.
⚖️ Navigate Different Loan Types: See a side-by-side comparison of repair rules for Conventional, FHA, and VA loans and learn why government-backed loans are much stricter.
📝 Craft the Perfect Repair Request: Learn how to write a legally sound repair addendum that protects you and ensures the work gets done correctly.
🚶‍♂️ Leverage the Final Walk-Through: Understand your rights during the final inspection and what to do if you discover agreed-upon repairs were done poorly or not at all.

The Power Players: Who Really Decides Which Repairs Get Done?

Before diving into specific repairs, it’s critical to understand the roles of the key people involved. The relationship between these players dictates the entire negotiation process. Misunderstanding their duties and motivations is the number one cause of confusion and conflict.

The Home Inspector is hired by and works exclusively for the buyer. Their job is to perform a deep, physical evaluation of the property’s condition and produce a detailed report listing every visible defect, from a leaky faucet to a cracked foundation.³ An inspector identifies problems; they do not determine the home’s value.

The Appraiser is hired by the lender (though usually paid for by the buyer).³ Their primary job is to determine the home’s fair market value to ensure it’s sufficient collateral for the loan.⁴ As part of this process, especially for government-backed loans, the appraiser also performs a high-level inspection to verify the property meets the lender’s minimum standards for safety and structural soundness.⁷

The Lender (or Underwriter) is the financial institution providing the mortgage. They are the ultimate authority on what must be fixed. If an appraiser flags a safety or structural defect, the lender will refuse to fund the loan until the repair is completed and verified, making it a non-negotiable, mandatory repair.⁹

The Real Estate Agents for the buyer and seller act as negotiators, advisors, and mediators. A buyer’s agent helps prioritize repair requests and communicates them to the seller’s agent.¹¹ The seller’s agent advises their client on how to respond based on the market, the severity of the issues, and the seller’s legal obligations.¹²

The Hierarchy of Headaches: Mandatory, Negotiable, and Cosmetic Repairs

Not all problems found during an inspection are equal. Understanding how to categorize them is the key to a successful negotiation. Trying to get a seller to fix a cosmetic flaw is a waste of time and can damage the goodwill needed to resolve major issues.

Mandatory Repairs are non-negotiable fixes required by the buyer’s lender. If these are not completed, the loan will not be funded, and the sale will collapse.⁹ These are almost always related to the lender’s core mission: protecting their investment by ensuring the home is safe, structurally sound, and habitable.¹³

Negotiable Repairs are significant defects that impact the home’s function, safety, or long-term integrity but might not automatically trigger a lender requirement. These are the heart of the negotiation battleground. While a seller isn’t legally forced to fix them, refusing to do so often leads the buyer to walk away using their inspection contingency.¹⁴

Cosmetic & Minor Repairs are issues of normal wear and tear or aesthetic preference that do not affect the home’s core function or safety.⁹ Asking a seller to address these is widely considered unreasonable and is a common mistake made by first-time buyers. These are problems you should expect to handle yourself after moving in.¹⁵

Repair Category	What It Means for You
Mandatory	*This is a deal-breaker.* The lender will not approve the mortgage until this is fixed. The seller must complete the repair, or the sale cannot proceed.
Negotiable	*This is a major problem.* It’s a serious flaw that affects the home’s value or safety. The seller isn’t forced to fix it, but you can likely cancel the contract if they refuse.
Cosmetic	*This is your responsibility.* It’s a minor issue like scuffed paint or a drippy faucet. Asking the seller to fix this can make you look unreasonable and hurt your negotiating power.

The Golden Rule: Why the Lender’s Rules Outrank Everyone Else’s

While buyers and sellers negotiate, the lender’s rulebook is the only one that truly matters. The type of loan a buyer uses—Conventional, FHA, or VA—determines the strictness of the property standards. Government-backed loans (FHA and VA) have the most rigorous requirements because they are designed to protect both the lender and the borrower, who often have lower down payments.⁹

Federal Housing Administration (FHA) Loans: Safe, Sound, and Secure

FHA loans are insured by the federal government and are popular with first-time homebuyers. To protect this government insurance fund, the U.S. Department of Housing and Urban Development (HUD) enforces strict Minimum Property Standards (MPS). An FHA appraiser’s job is to ensure the home is “safe, sound, and secure”.¹⁸

Common FHA-required repairs include:

Peeling or Chipping Paint: In any home built before 1978, all peeling or chipping paint (interior and exterior) must be scraped and repainted. This is a federal requirement due to the risk of lead-based paint, which is a major health hazard.¹⁹
Roof Condition: The roof must be in good condition and have at least two years of remaining useful life. It cannot have more than three layers of shingles.¹⁹
Safety Hazards: Missing handrails on stairs with three or more steps, broken windows, or exposed electrical wiring must be corrected.²⁰
Functional Systems: The heating system must be able to maintain a temperature of at least 50°F in all living areas. All plumbing and electrical systems must be in safe, working order.¹⁸

Department of Veterans Affairs (VA) Loans: Safe, Sound, and Sanitary

VA loans are guaranteed by the U.S. Department of Veterans Affairs and are an exclusive benefit for service members, veterans, and eligible surviving spouses. Similar to FHA loans, they have Minimum Property Requirements (MPRs) to ensure the home is “safe, sound, and sanitary”.²¹

Common VA-required repairs include:

Pest Infestations: A termite inspection is often required, and any evidence of wood-destroying pests must be treated and repaired.²³
Safe Access: The property must have safe, year-round access from a public or private street.²²
Clean Water and Sanitation: The home must have a continuous supply of safe drinking water and a sanitary method of sewage disposal.²²
Structural Integrity: The home must be structurally sound, free of decay, fungus, or excessive dampness. Basements and crawl spaces must be dry and properly ventilated.²²

Conventional Loans: The Most Flexible (But Not a Free Pass)

Conventional loans are not insured by the government, so lenders like Chase, Bank of America, or Wells Fargo set their own standards. Generally, they are more flexible and focus on major defects that impact the property’s value and marketability, rather than minor repairs.⁷

However, an appraiser for a conventional loan will still flag significant issues that pose a risk to the property’s soundness or the safety of its occupants.⁵

Major Structural Problems: Large foundation cracks, a severely damaged or actively leaking roof, or bowing walls will almost always be required repairs.⁷
Major Safety Hazards: Exposed live wiring or a non-functional heating system in a cold climate are typically mandatory fixes.⁷

The following table breaks down how different loan types handle common repair issues.

Repair Issue	Conventional Loan	FHA Loan	VA Loan
Peeling Paint (pre-1978)	Usually ignored unless severe.	*Mandatory Repair.* Must be scraped and repainted due to lead hazard.	*Mandatory Repair.* Defective paint must be corrected.
Roof Condition	Must not have active leaks.	*Mandatory Repair.* Must have at least 2 years of life left; no more than 3 layers of shingles.	Must be in good condition and provide “reasonable future utility.”
Missing Handrails	Only required if an obvious safety hazard.	*Mandatory Repair.* Required on any open stairway with three or more steps.	Required for safety; must be stable and secure.
Pest Damage	Only required if structural integrity is compromised.	*Mandatory Repair.* Any infestation must be exterminated.	*Mandatory Repair.* Termite inspection often required; damage must be treated.

State vs. Federal Law: The Disclosure Tug-of-War

Beyond lender rules, sellers must also follow state-specific disclosure laws. These laws dictate what a seller must tell a buyer about the property’s condition. This is a critical area where federal and state laws interact to protect buyers.

A key federal law is the Residential Lead-Based Paint Hazard Reduction Act of 1992. This law requires sellers of any home built before 1978 to disclose any known lead-based paint hazards, provide the buyer with an EPA pamphlet, and offer a 10-day period for the buyer to conduct their own lead risk assessment.²⁷ This is a federal mandate that applies in every state.

State laws, however, vary dramatically. They generally fall into two camps:

Mandatory Disclosure States: Most states, like California and Texas, require sellers to provide buyers with a detailed, standardized disclosure form. On this form, the seller must answer a long list of questions about the condition of the property’s features, from the foundation to the appliances.²⁸ If a seller knows about a leaky roof, they must disclose it in writing.
“Caveat Emptor” (Buyer Beware) States: A minority of states, such as Alabama and Wyoming, follow the “buyer beware” principle.²⁸ In these states, the seller has no general duty to point out defects. The responsibility falls on the buyer to conduct thorough inspections to discover any problems.²⁸ However, even in these states, a seller cannot actively conceal a defect or lie if asked a direct question.²⁸

The most important consequence of these laws is this: if a seller fails to disclose a known material defect as required by their state, and the buyer discovers it after closing, the buyer may have the right to sue the seller for damages.²⁹

Real-World Scenarios: Navigating Repairs as a Buyer and Seller

Let’s walk through three common scenarios to see how these rules play out in real life.

Scenario 1: The First-Time Homebuyer with an FHA Loan

Maria is a first-time buyer purchasing a charming 1960s bungalow in Florida using an FHA loan. The home inspection reveals several issues, but her biggest concerns are the peeling paint on the exterior window sills and the fact that the back porch steps, which have four risers, have no handrail.

The seller, an investor who has never lived in the home, initially refuses to make any repairs, citing the “as-is” clause in the contract. However, when the FHA appraiser visits, he flags both the peeling paint and the missing handrail as mandatory repairs required to meet FHA’s “safe, sound, and secure” standards. The loan cannot be approved until these are fixed.

FHA Finding	Required Action & Consequence
Peeling paint on a pre-1978 home.	*Mandatory Repair.* The seller must have the paint scraped and repainted by a professional. If not, the FHA loan will be denied, and the deal will fall through.
Stairs with more than three steps and no handrail.	*Mandatory Repair.* The seller must install a secure handrail. Failure to do so will result in loan denial.

Faced with the certainty of the deal collapsing, the seller has no choice but to complete the repairs. Maria’s agent ensures the repair addendum specifies that the work must be done by a licensed contractor and provides receipts before the final walk-through.

Scenario 2: The Experienced Buyer in a Hot Seller’s Market

David is buying an investment property in a competitive seller’s market in Texas, where multiple offers are common. He knows he has very little leverage. His inspection reveals that the 15-year-old HVAC system is nearing the end of its life and the water heater is leaking slightly.

David’s agent advises him that asking for a new HVAC system would likely get his offer rejected in favor of a backup offer. Instead, they focus only on the active water leak, framing it as a current, ongoing damage issue rather than a future problem. They request a modest credit at closing to cover the cost of a new water heater, which they support with a quote from a plumber.

Buyer’s Goal	Negotiation Outcome
Replace an aging but functional HVAC system.	*Request Denied.* In a seller’s market, sellers are unlikely to replace systems that are still working. David accepts this as his own future expense.
Fix an actively leaking water heater.	*Credit Negotiated.* The seller, wanting to avoid future liability and keep the deal moving, agrees to a $1,500 credit at closing. This is a win for David in a tough market.

Scenario 3: The Seller of an Older Home in a Buyer’s Market

Susan is selling her 75-year-old family home in a buyer’s market in Ohio, where inventory is high and buyers have plenty of choices. The buyer’s inspection uncovers knob-and-tube wiring in the attic (a potential fire hazard that many insurers won’t cover) and evidence of past water intrusion in the basement.

Susan knows that if this deal falls through, Ohio’s disclosure laws require her to update her property disclosure form to reveal these issues to all future buyers.²⁷ This would significantly weaken her negotiating position with the next buyer. Realizing this, she is highly motivated to find a solution.

Seller’s Choice	Financial Impact
Refuse all repairs and risk the deal collapsing.	*High Risk.* The buyer would likely walk away. Susan would then have to re-list the home with the newly discovered defects disclosed, likely leading to a lower sale price.
Agree to a large credit for both issues.	*Smart Move.* Susan gets three quotes for each repair and negotiates a $12,000 credit with the buyer. This allows the sale to close on time and transfers the responsibility for the repairs to the new owner.

The Three Paths to Resolution: Which Is Best for You?

When a seller agrees to address a repair, there are three ways to structure the solution: the seller performs the repairs, the seller gives the buyer a credit at closing, or the seller reduces the purchase price. The overwhelming consensus among real estate professionals is that a credit at closing is the best option for the buyer.³¹

Option	Pros	Cons
Seller Performs Repairs	The home is “move-in ready” for the buyer. May be required for certain lender-mandated fixes.	Seller is motivated to use the cheapest contractor, leading to poor quality. Can cause delays if work isn’t finished on time. Buyer has no control over the process.
Credit at Closing	Buyer has full control over contractor choice and quality. Avoids closing delays. Seller’s liability ends at closing.	Buyer must manage the repair process after moving in. The credit amount may not cover the full cost if unexpected issues arise.
Price Reduction	Lowers the buyer’s loan principal and monthly payment slightly.	Provides no upfront cash for the buyer to perform repairs. A $5,000 price cut may only save $25/month, which doesn’t help with a $5,000 repair bill.

Mistakes to Avoid in Repair Negotiations

The repair negotiation is a delicate dance. One wrong move can sour the deal and lead to a breakdown in communication. Here are the most common mistakes buyers and sellers make.

Buyer Mistake: The Laundry List. Submitting a long list of minor, cosmetic issues is the fastest way to alienate a seller.¹⁶ It signals that you are unreasonable and may cause the seller to refuse to negotiate on the major problems that truly matter.
- Negative Outcome: The seller sees you as difficult and becomes unwilling to compromise on a serious safety hazard, forcing you to either accept the risk or walk away from the home.
Seller Mistake: The Flat “No.” Immediately refusing to address a legitimate, documented safety or structural issue can destroy trust.³⁵ It makes the buyer wonder what else you might be hiding and gives them a powerful reason to exercise their inspection contingency and cancel the contract.
- Negative Outcome: The buyer cancels the deal. Now, you must re-list the property and legally disclose the defect you refused to fix to all future buyers, likely resulting in a lower final sale price.
Buyer Mistake: Vague Requests. A repair request that says “fix plumbing” is a recipe for disaster. The seller could hire an unlicensed handyman to put a temporary patch on a leaking pipe, technically “fixing” it for the final walk-through but leaving you with a major problem weeks later.
- Negative Outcome: The repair is done poorly. Because the request was not specific, you have little legal recourse and are stuck with the bill for a proper repair after closing.
Seller Mistake: The Cheap Fix. When you agree to perform a repair, your incentive is to spend as little money as possible. Hiring the cheapest, least-qualified contractor often leads to shoddy work that the buyer will spot during the final walk-through, causing disputes and delaying the closing.³²
- Negative Outcome: The buyer rejects the poor-quality repair at the final walk-through. The closing is delayed, and you may have to pay for the repair to be redone correctly or offer a last-minute credit anyway.

Do’s and Don’ts for a Smooth Repair Negotiation

Navigating the emotional and financial stakes of repair requests requires a strategic approach. Following these simple rules can keep the process professional and productive.

Do’s	Don’ts
✅ Prioritize health, safety, and structural issues. Focus your energy on the problems that genuinely affect the home’s livability and value.	❌ Don’t sweat the small stuff. Avoid asking for cosmetic fixes or anything that costs less than a few hundred dollars to repair.
✅ Get everything in writing. All agreements must be documented in a formal repair addendum to be legally enforceable.	❌ Don’t rely on verbal promises. A handshake deal to fix the roof means nothing if it’s not in the signed contract.
✅ Provide evidence for your requests. Back up your requests with relevant sections of the inspection report and quotes from licensed contractors.	❌ Don’t make emotional demands. Keep the conversation professional and focused on the facts of the report, not on your feelings of disappointment.
✅ Be prepared to compromise. Both sides want the deal to close. A willingness to meet in the middle is often necessary to reach an agreement.	❌ Don’t issue ultimatums. Drawing a hard line in the sand too early can force the other party to walk away out of principle.
✅ Ask for a credit instead of a repair. This gives you control over the quality of the work and avoids delays.	❌ Don’t let the seller choose the contractor. If you must have the seller perform the repair, insist on approving the contractor and require licensed professionals.

The Final Walk-Through: Your Last Chance to Verify

The final walk-through, typically conducted 24-48 hours before closing, is not a second inspection.³⁶ It is your last opportunity to verify two critical things: 1) that the property is in the same condition as when you signed the contract, and 2) that all agreed-upon repairs have been completed to a satisfactory standard.³⁸

Bring a copy of your purchase agreement and the signed repair addendum. Meticulously check each and every repair that was agreed upon.³⁸

If a faucet was replaced, turn it on and check for leaks under the sink.
If an electrical outlet was fixed, bring a phone charger to test it.
If the roof was patched, look for any new water stains on the ceiling below.

What if a repair is incomplete or done poorly? Do not proceed with the closing. Once you sign the final papers and the funds are transferred, you lose nearly all your leverage.⁴⁰ Your options are:

Delay the Closing: This is the most common solution. The closing is postponed until the seller corrects the repair.⁴⁰
Negotiate an Escrow Holdback: A portion of the seller’s proceeds (typically 1.5 times the estimated repair cost) is held in an escrow account after closing. The funds are released to the seller only after the repair is properly completed. If they fail to do so within a set time, the money is released to you to hire your own contractor.⁴⁰
Negotiate a Last-Minute Credit: If the issue is minor, you may agree to a credit at the closing table to avoid a delay. This requires last-minute approval from the lender to adjust the closing documents.⁴⁰

Frequently Asked Questions (FAQs)

Are sellers legally required to make repairs after an inspection?No. Sellers are not legally obligated to fix anything unless it’s a lender requirement or specified in the contract. However, refusing to negotiate on major issues often allows the buyer to cancel the deal.42
Should I ask for repairs or a credit?Yes. You should almost always ask for a credit. This gives you control over the quality of the work and avoids closing delays. Letting the seller manage repairs often results in the cheapest, lowest-quality fix.32
What is an unreasonable repair request?Yes. Requesting fixes for cosmetic issues, normal wear and tear, or anything under a few hundred dollars is generally considered unreasonable. This includes scuffed paint, worn carpets, or minor landscaping issues.15
How does a seller’s market affect repair negotiations?Yes. In a seller’s market, buyers have less leverage. Sellers may refuse most requests, knowing other offers are available. Buyers should focus only on the most critical health and safety issues to avoid losing the home.44
What is the difference between an inspection and an appraisal?Yes. An inspection, paid for by the buyer, assesses the home’s physical condition. An appraisal, required by the lender, determines the home’s market value to ensure it’s adequate collateral for the loan.3
What if the seller does a bad repair job?No. Do not close on the home. You should delay the closing until the repair is corrected, negotiate an escrow holdback to fund a proper repair later, or ask for a last-minute credit.40
How do I prove repairs were done correctly?Yes. The repair agreement should require the seller to provide detailed invoices and lien waivers from licensed contractors. You then verify the work yourself during the final walk-through before closing.47
Can I sue the seller for a defect I find after closing?Yes, but it is very difficult. You would need to prove the seller knew about a material defect and intentionally concealed it or failed to disclose it as required by your state’s law.29
Does an “as-is” clause mean I can’t ask for repairs?No. An “as-is” clause means the seller won’t perform repairs, but it doesn’t stop you from asking for a credit or price reduction. If the seller refuses, your inspection contingency usually allows you to cancel the contract.50
Who pays for the home inspection?Yes. The buyer is responsible for paying for the home inspection and any specialized inspections they choose to order. The cost is typically a few hundred dollars.51
What is an escrow holdback?Yes. It’s an agreement where a portion of the seller’s proceeds is held by a third party after closing. The money is used to pay for repairs that were not completed by the closing date.40
Is it a red flag if a seller offers a credit instead of doing repairs?No. This is the preferred method for resolving repair issues. It shows the seller is reasonable and wants a smooth closing, while giving you control over the quality of the work.31
What if my inspection finds over $10,000 in repairs?Yes. You should get independent quotes to verify the costs, then present the most critical issues to the seller to negotiate a significant credit or price reduction. Be prepared to walk away if you can’t reach an agreement.53
Do I have to disclose issues found in an inspection if my deal falls through?Yes. If you are the seller and a buyer’s inspection uncovers a material defect, you are now legally aware of it. Most state laws require you to disclose this known defect to all future potential buyers.40
Can a real estate agent force me to accept or deny a repair request?No. Your agent’s job is to advise and negotiate on your behalf. The final decision to accept, reject, or counter any repair request is always yours. They must follow your lawful instructions.

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