You’re selling your home, and the buyer’s inspection report flags one major issue: the oil tank needs to be replaced. You agree with the finding and have already gathered an estimate—around $8,000. Now comes the big question: Who should pay for it?
While your real estate agent can offer advice, it’s smart to think through your options and consider how other sellers might handle this situation. Especially if your home is priced competitively in a cooling market and the buyer made a full-price offer, you want to weigh your choices carefully.
Here are three possible responses you could consider:
1. Cover the Full Cost Yourself
If you’re eager to keep the deal on track and avoid delays, covering the full cost might be the cleanest route. This shows good faith to the buyer and reduces any negotiation back-and-forth.
Pros:
- Keeps the sale moving smoothly
- Avoids renegotiation or potential fallout
- Builds goodwill with the buyer
Cons:
- You take on the full financial burden
- No guarantee of a higher selling price as a result
2. Negotiate a Shared Cost with the Buyer
If the buyer is motivated and the issue wasn’t factored into their original offer, it’s reasonable to ask them to share in the cost. You could propose splitting the cost 50/50 or offering a seller credit at closing.
Pros:
- Reduces your financial hit
- Shows you’re being fair and collaborative
- Keeps the buyer invested in the deal
Cons:
- Requires negotiation, which can delay progress
- Buyer might push back or ask for additional concessions
3. Offer a Credit Instead of Doing the Work
If you prefer not to handle the replacement yourself, offering a credit at closing gives the buyer flexibility to manage the repair post-sale.
Pros:
- Avoids project delays or logistical headaches
- Buyer can choose their own contractor or timeline
- Keeps the sale moving forward
Cons:
- Buyer may want a larger credit than the repair estimate
- Some lenders may require repairs before closing
There’s no one-size-fits-all answer—each real estate transaction has its own rhythm and dynamics. Think about your timeline, your bottom line, and how motivated your buyer is. Open communication and fairness can go a long way toward keeping your deal intact while protecting your interests.
If you’re considering a move or investment and require a trusted Real Estate Broker, we’re here to assist you. Contact us via email at TEAM@McDanielCallahan.com, complete the form below, or give us a call at 925-838-4300. We are ready to provide expert guidance and support for all your real estate needs. Terry McDaniel DRE License #00941526
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