Short answerSubject to repairs means the lender will not close until listed items are fixed and verified, often with a reinspection by the appraiser. No program requires the seller to pay. Who pays is negotiated under the purchase agreement. Some lenders allow certain repairs to be completed after closing with an escrow holdback; many require them before closing.
How it usually works
- The appraisal lists required repairs.
- Buyer and seller agree who does them.
- Work is completed, often with receipts.
- The appraiser or lender verifies, then closing proceeds.
Plan ahead: common required repairs.
Frequently asked questions
Can the buyer do repairs before closing?
Only with the seller's permission, and many lenders discourage it.
What if no one will pay?
The loan may not close. Talk with your agent and lender right away.
Keep reading
Want to know what a buyer's inspector may find before they do?
Book a free pre listing condition walk. I walk the house with you, point out what inspectors and FHA, VA, and USDA appraisers tend to flag, and give you planning ranges so you can decide what to fix, credit, price in, or disclose.
Book a condition walkOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The condition walk is a REALTOR® and contractor evaluation, not a home inspection, and it does not replace one. If you have already signed a listing agreement with another agent, please take these questions to your agent.
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- HUD Handbook 4000.1, Single Family Housing Policy Handbook
- VA Pamphlet 26 7, Chapter 12
- USDA HB 1 3555, Chapter 12
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.