First, try tightening the valve packing. See the nut where the valve stem enters the valve (in the red oval in your pic)? Tighten that slightly, just a tiny bit to start and see if that stops your leak. If not, tighten a bit more. You want it tight enough to stop the leak, but not so tight that the valve won't turn. If that doesn't fix it, you may need to replace the packing, if you can, or replace the valve entirely.

Tell the seller to go buy a new house.

I am the seller.

I think Brickeyee meant - tell the buyer to go buy a new house. If this is the only problem they can find, they are either looking for an excuse not to buy, or an excuse to try and get a lower price as this is a minor problem. The worst it would need is a new hose bib.

True, but I'd assume buyer had an inspector, and it's their job to find stuff like that.

Those old tape are crap, but more often than not, tightening the nut Alice mentioned will work. If not, and it's accessible, a quarter-turn ceramic washer hose bib is far superior and around $20. Personally, I put a threaded receiver in, so the hose bib can be screwed in, and unscrewed should it need replacing.

Quote;"True, but I'd assume buyer had an inspector, and it's their job to find stuff like that."

If that is all their inspector could find I would not be overly concerned about him either,,,,,

Where is the mandatory backflow preventer? The inspector made no mention of that, which tells me their inspector is one of the quick peek con artist types more intent on getting the buyers money than actually inspecting anything.

"I think Brickeyee meant - tell the buyer to go buy a new house."

Yes.

Sorry.

If they want a new house tell them to go purchase one.

Old installations are normally grandfathered, so no back flow preventer is likely actually required.

If you want you can purchase a screw on back flow preventer that goes on the spigot, and then the hose attaches.