No right or wrong answer. Depends really on the repairs. Plus you forgot the option of ignore.

Why don't you post the list after inspection and then we can comment.

You'll need to wait and see what the buyers ask.

As both a seller and a buyer I've always preferred to give a cash credit rather than have the seller make repairs. As a seller I don't want to have a buyer who isn't satisfied with the repairs and who might later on complain that they weren't made properly. I also don't want to have to deal with the hassle. I would prefer to decide on a reasonable amount and credit that and then it is the buyer's problem.

As a buyer I want to have control over the repairs and how they are made and who makes them. So, I want to make them myself rather than having the person making them who won't be the one living with them.

As both a seller and buyer in setting the dollar amount I've generally been guided by what I think is a problem that the buyer shouldn't have really anticipated and that is beyond normal wear and tear for the age of the house.

For those of you who've sold homes, do you think it's better just to offer to kick back some money to the buyer or have the repairs done before closing?

The inspection is supposed to be to catch substantial problems that couldn't be spotted on a walk-through, not cosmetic issues and highly visible things. Inspectors tend to document every possible flaw to prove they are worth their fee, which may freak out the buyer.

Inspections are becoming a "let's make an offer to get this under contract and then beat the down using the inspection report as the weapon" practice with the "pending results of inspection" clause.

If buyers don't like the inspection report they have the option to walk or not if there is anything about the report they don't like (unless the "pending inspection results" clause is written to include only "health and safety and structural stability" issues), but they don't have the option to make you fix things to their satisfaction unless you stupidly wrote a contract like that.

The buyer's response to an inspection report should be either "We're out of the deal, there are problems we don't want to deal with" OR a revised offer with a list of repairs and/or price lowering.

NOTE: Seller can reject the revised offer ... and depending on the market, might be wise to do so.

NOTE: Seller should do major repairs, or reduce price enough to cover the repairs, but not both. Some buyers will try to get you on both ends.

The next step, if seller doesn't reject the revised offer, should be a counter-offer with a binding repair proposal from the seller. That is a sales contract that specifies that seller will fix the problems listed on the proposal and that on completion of the agreed-upon repairs, as verified by buyer's agent, a walkthrough, submitted repair invoices with pictures (whatever makes sense) the closing will take place at the price of ____.

Like any counteroffer, the buyers have __ time to respond with a counter to the counter ... this may go on for a few rounds.

The seller or seller's realtor should make it clear that the buyer does not have unlimited rounds of negotiating what will be fixed or not fixed, and there should be a time limit for this negotiating in the repair proposal, after which you will be free to accept other offers. Don't let them hang on for weeks haggling about the way a closet door hangs and keep your place off the market.

After the repair proposal has been negotiated and signed they don't get to keep dragging stuff out and saying "what about this?" That repair agreement should lead right to the closing table!

Buyer, unless they are paying for the repair, does not get to question your choice of contractor.

NOTE: We bought our NM house out from under a buyer whose tactic was to keep bringing up stuff from the inspection report and re-opening negotiations about price. Fortunately for the seller, the sales agreement had expired as had the numerous extensions and amendments they had been making for various repairs.

As a buyer I would much prefer cash. Last time we sold the buyers preferred that we take care of the problems, which we did. So it can go either way. As the new owner I'd really like to be the one picking the contractor and deciding on the level of work to be done, avoiding the quick and dirty job the departing owner might do.It does usually cost me more to get repairs done my way than the negotiated settlement produces.

Lazy,
Thanks for the thorough breakdown of the process.

Well, we got the report and the 'bigger' issues were things we'd already disclosed. But, wow, you were right, there was an exhaustive list of every last little thing in the house. It's about 120 years old, so even though we've done a lot, there are still little issues here and there. He told me the house was in very good shape, but after seeing the list I am afraid the buyers will freak out. Haven't heard from them yet...