6 Options When a Michigan Seller Won't Fix Inspection Items

When a seller won't fix inspection items in Michigan, the purchase is not over. The law asks Michigan sellers to disclose known problems, not to repair them, so a buyer's real tools are the contract, the loan and the deadline.

These are the six options a buyer has, what each looks like done well, and the mistake that costs buyers the most.

The six options, in short:

1. Send a narrow, written repair request
2. Ask for a credit at closing instead
3. Ask for a lower price instead
4. Lean on lender-required repairs
5. Use an escrow holdback for later repairs
6. Walk away inside the inspection contingency

1. Does a seller in Michigan have to fix what my inspection found?

No. Michigan's Seller Disclosure Act requires a seller to disclose known problems on a state form, and the form itself says it is not a warranty. The law is about disclosure, not repairs. A buyer's leverage comes from the inspection contingency in the purchase agreement: the right to ask for changes or cancel before the deadline.

A strong repair request is written, sent before the inspection deadline and limited to safety, structure and major systems. Attach the inspector's photos and page numbers so the seller sees the problem, not just the ask. Put the date the seller must answer in the request.

A request padded with cosmetic items, such as worn carpet, paint or dated fixtures, is the kind sellers tend to reject. Asking is not wrong, but it buries the items that matter. Split the must-fix list from the wish list before you send anything.

2. Should I ask for a repair credit instead of repairs?

A repair credit is money from the seller at closing in place of the seller doing the work. It lets you hire your own contractor. Lenders treat it as a seller contribution toward closing costs, and Fannie Mae caps those at 3 percent of value on a primary home when the loan is more than 90 percent of the value.

A strong credit request rests on written contractor quotes, not guesses, and the amount fits under your lender's cap. Tell your lender about the credit before you agree to it. A credit larger than your closing costs may be cut back or change the loan math.

Agreeing to a credit without checking with the lender is the costly slip. A seller who offers a credit well below the quotes is negotiating, not refusing. Counter with the quotes in hand rather than splitting the difference out of habit.

3. Is a price reduction better than a repair credit?

A price reduction lowers the loan and the down payment, but it puts no cash in your hand for the repair. A credit helps at closing, while a lower price spreads the savings over the loan. In Michigan, a lower price does not by itself cut your future property taxes, because the sale price is not presumed to be the home's value.

A strong choice runs both versions on paper: your cash to close, your monthly payment and the repair cost you will carry. A price cut often suits a big repair you can plan for later, such as an aging roof. A credit suits work you want done right away.

A small price cut on a large repair is the trade to avoid. The monthly savings may never cover the bill when it comes due. Ask for both options in dollars, side by side, before you pick one.

4. Will my FHA or VA loan make the seller fix inspection items?

FHA and VA loans come with minimum property requirements that the appraiser checks. HUD says its standards make sure a home is safe, sound and secure, and the appraiser must note the repairs needed to meet them. Those repairs must be done before closing or covered by a repair escrow the lender allows.

A strong plan reads the appraisal as soon as it arrives and lists any required repairs with a date. A seller who refuses your requests may still agree to lender-required work, since the sale cannot close without it. The VA notes its appraisal is not an inspection, so get your own.

Counting on the appraisal to catch every defect is the mistake. Minimum property requirements cover safety and soundness, not age, wear or looks. Paying for repairs on a house you do not own yet is risky, so put any such deal in writing.

5. Can we use an escrow holdback for repairs that cannot be done before closing?

An escrow holdback sets money aside at closing to pay for repairs finished after the sale. It fits work that cannot happen in time, such as exterior repairs during a Michigan winter. Fannie Mae allows postponed items for a valid reason, such as bad weather, with the money held in a completion escrow. Not every lender offers holdbacks, so ask early.

A strong holdback names the repair, the contractor, the amount held, the deadline and who signs off when the work is done. Some Michigan cities with point-of-sale inspections, such as Allen Park, require an escrow when a home sells as is. Ask whether your city has a rule like that.

A handshake promise to fix it after closing is the deal to refuse. Once the deed records, your leverage is gone. A holdback with no deadline or no named contractor is a grey area worth tightening before you sign.

6. Can I back out after the inspection in Michigan if the seller won't fix anything?

Yes, if your purchase agreement has an inspection contingency and you give written notice the way it requires before the deadline. That is usually how a buyer gets the earnest money back. Once the deadline passes, the contract may treat the inspection as accepted, and walking away can put the deposit at risk.

A strong exit is a written notice of termination, sent on time, that cites the contingency, followed by a signed release of the earnest money. Buyers in Rochester and Rochester Hills, where The Delia Group works, should put the inspection deadline on a calendar the day the offer is accepted.

Waiting on the seller's answer until the deadline has passed is the trap. If the seller stalls, the clock keeps running. Silence is not a refusal you can act on later, so send your notice in time, even while talks continue.

Six Options Compared

Option	What you get	Watch for
Narrow repair request	Seller fixes key items	Quality of the seller's work
Repair credit	Cash toward closing costs	Your lender's cap
Price reduction	Smaller loan and payment	No cash for the repair
Lender-required repairs	Safety items handled	Cosmetic items not covered
Escrow holdback	Money held for later work	Lender must allow it
Walk away	Earnest money back, on time	The contingency deadline

Compare what each option gets you and what to watch before you choose.

Frequently Asked Questions

Do sellers have to respond to repair requests?

No law makes a seller answer, but the purchase agreement usually says what happens if they do not. Some contracts treat silence by the deadline as a rejection, which leaves the buyer to proceed or cancel. Read your own agreement for the exact timing.

Do buyers always ask for repairs?

No. Some buyers accept minor findings and save their requests for safety, structure and major systems. A short, focused request is easier for a seller to accept. Buyers comparing top realtors in Rochester can ask how each one would frame a request for a specific house.

Is a seller disclosure required in Michigan?

Yes, for most home sales. Michigan's Seller Disclosure Act, Act 92 of 1993, requires the seller to deliver the disclosure statement before signing a binding purchase agreement. If it arrives after, the buyer can end the deal within 72 hours of delivery in person, or 120 hours if sent by registered mail.

Do sellers usually pay for repairs?

There is no standard answer. Some sellers make the repairs, others offer a credit or a lower price instead, and some refuse. The condition of the home, the market and whether the seller has a backup buyer usually decide it.

Is it possible to negotiate the house price after an offer has been accepted?

Yes, but usually only through a door the contract leaves open, such as the inspection or appraisal contingency. Outside those, the seller can hold you to the agreed price. Any change needs a signed amendment to the purchase agreement.

Talk to The Delia Group before your inspection deadline

The Delia Group is a Rochester, Michigan real estate team working with buyers and sellers in Rochester, Rochester Hills, Oakland Township and across Oakland County. When a seller says no to repairs, the deadline is the first thing to protect, and the options above all depend on it. Buyers comparing the best real estate agents in Rochester can start there.

This article is general information for Michigan homebuyers, not legal or tax advice. Repair rights, deadlines and notice rules come from your own purchase agreement, and lender rules vary by loan. Confirm your own situation with a real estate attorney or a tax professional.