What to Do After a Bad Home Inspection

Don't panic. Almost every inspection finds something — that's the point of doing one. The question is whether the findings are negotiable, repairable, or deal-breakers. Here's how to think it through. (Already need a re-inspection or second opinion? Get a quote in 30 seconds →)

Step 1: Categorize the findings

Open the report and sort every finding into one of four buckets:

• Safety items — fix-or-walk (e.g., active gas leak, exposed live wiring, structural collapse risk)
• Major defects ($3,000+) — negotiate hard (failing roof, cracked heat exchanger, foundation movement, full electrical re-wire)
• Minor defects ($300-$3,000) — bundle and negotiate (water heater nearing end-of-life, window seals failed, deck repair)
• Cosmetic / monitor — let it go (chipped paint, dated fixtures, small drywall cracks)

The mistake first-time buyers make: trying to fight on every finding. You'll exhaust seller goodwill on $200 items and lose leverage on the $5,000 ones.

Step 2: Get cost estimates on the major items

Don't ask the seller to "fix the roof." Get 2 contractor estimates first. A "bad roof" might be $4,500 for a partial repair OR $18,000 for a full tear-off. The number drives the negotiation.

For Apple Valley homes, your inspector should have given you ballpark estimates in the report. Use those as starting points, then verify with a contractor before negotiating.

Step 3: Decide — repair, credit, or price reduction?

Ask for a CREDIT (recommended in most cases)

You get cash at closing equal to the agreed repair amount. You hire the contractor, you control quality, you set the timeline. Sellers often prefer this too — they don't have to manage repairs while moving.

Ask for a REPAIR (best for safety items)

Seller pays for and arranges the work before closing. Pros: it's done before you move in. Cons: seller picks the cheapest contractor; you'll need a re-inspection to verify quality.

Ask for a PRICE REDUCTION (cleanest)

The contract price drops by the agreed amount. Affects your loan-to-value, but simplest paperwork. Often a non-starter for sellers because it implies they overpriced.

Step 4: How to actually negotiate (the conversation)

Your agent runs the negotiation, but here's the framework:

1. Submit an inspection objection letter with a SHORT list (3-5 items max) and your asks (credit/repair/reduction)
2. Attach contractor estimates for the $3,000+ items — gives the ask credibility
3. Anchor high but stay reasonable — start at full estimate cost; expect to settle at 60-80%
4. Be willing to walk — the strongest negotiating position is genuine willingness to leave the deal

When to walk away (red flags that override negotiation)

Some findings are deal-killers regardless of price reduction:

• Active foundation movement — not just cracks; actual displacement
• Significant structural defects in load-bearing components
• Failing systems requiring same-year replacement — roof + HVAC + water heater + electrical panel adding up to $40K+ on a starter home
• Hidden water damage with potential mold issues you can't quantify
• Buried oil tanks with potential contamination liability
• Seller refuses ANY negotiation on legitimate safety items

Should you get a re-inspection after repairs?

Yes — if the seller agreed to do the repairs. A re-inspection (typically half the cost of the original) verifies the work was done correctly. Common findings: contractor used wrong materials, didn't fix the actual underlying issue, or only addressed the visible symptom.

We do re-inspections for our own clients at a reduced rate. Call (952) 456-4066.

What if you're SECOND-guessing the inspection itself?

If your inspection report seems unusually short, missing photos, or makes claims that don't match what you saw on the home — get a second opinion. We do "second-opinion" inspections for buyers who lost confidence in their first inspector. Get a quote in 30 seconds.

Related guides

• How to read a home inspection report
• How much does a home inspection cost in MN?
• What does a home inspection include?
• How long does a home inspection take?
• Ice dam damage in MN homes
• Aluminum wiring in 1970s Twin Cities homes
• Cedar siding rot in Twin Cities homes

The biggest mistake at this stage

Letting emotion drive the decision. Buyers either fall in love and ignore real findings ("the deck just needs love"), or panic at minor issues and walk from a great home. The report is a list of facts. Your job is to price each fact and decide if the total still works.