Chattanooga · Buyer

Who Pays for Repairs After a Home Inspection in Chattanooga?

Drew CareyOctober 24, 2026

Who pays for repairs after a home inspection in Chattanooga? The short answer: nobody is automatically required to pay for anything. Inspection repair costs are negotiated, not guaranteed, and the outcome depends on market conditions, how the contract is written, and how both sides approach the conversation.

How Repair Negotiations Work After an Inspection

Once the inspector's report comes in, the buyer typically has a set number of days — defined in the purchase contract — to review findings and submit a repair request to the seller. In Tennessee, this window is spelled out in the Tennessee Association of Realtors standard contract. Buyers can request repairs, a price reduction, a credit at closing, or some combination of the three.

Sellers are not obligated to agree to any of it. They can accept the request, counter with a partial fix or credit, or decline entirely. If the two sides can't reach an agreement, the buyer may have the right to walk away and recover their earnest money — again, depending on what the contract says.

The Tennessee Real Estate Commission sets the licensing and conduct standards that govern how agents handle these negotiations, so both parties have a framework protecting them through the process.

What Sellers Are Actually Expected to Fix

In Chattanooga, sellers are not required by law to fix cosmetic issues. Most negotiation energy goes toward safety items, structural problems, roof condition, HVAC function, and anything a lender flags as a condition of the loan. If the buyer is using FHA or VA financing, the lender may require certain repairs before the loan closes — and in that case, the seller either makes those repairs or the deal falls apart.

Sellers who want to stay ahead of this should consider a pre-listing inspection. Knowing what's in the house before buyers do gives you more control over how repairs get priced and presented. Find out what your home is worth →

What This Means For You

• Buyers should prioritize repair requests around safety, major systems, and lender requirements — not cosmetic items.

• Sellers can offer a closing credit instead of making repairs, which keeps the transaction moving and lets buyers hire their own contractors.

• In a competitive market, buyers sometimes waive the inspection or limit repair requests to stay attractive. Know the risk before you do that.

• Credits at closing are often cleaner than repair agreements, since you avoid disputes over workmanship quality.

Repair negotiations after an inspection are one of the places deals most commonly fall apart. Going in with clear priorities on both sides makes the difference. Tell us your budget, timeline, and priorities, and we will help you build a Chattanooga neighborhood shortlist.

Frequently Asked Questions

Can a seller refuse to make any repairs after a home inspection in Chattanooga?

Yes. Sellers in Tennessee are not legally required to make repairs after an inspection unless the purchase contract says otherwise. The seller can decline, counter, or offer a credit instead — and the buyer then decides whether to proceed or exit the contract within the terms agreed upon.

What repairs must be made if the buyer is using FHA or VA financing?

FHA and VA loans have minimum property standards that must be met before the loan will close. Common required repairs include fixing safety hazards, repairing structural issues, and ensuring working utilities. If the seller won't make those repairs, the buyer may need to switch loan types, negotiate a lower price to cover post-close repairs, or walk away.

Is it better to ask for a repair or a closing credit?

A closing credit is often cleaner for both sides. The seller avoids managing contractors and the buyer can hire who they choose after closing. The one downside for buyers: the credit reduces your out-of-pocket costs at closing, but you still need to have the work done and manage it yourself. Talk through both options with your agent before submitting a repair request.