Navigating the Home Inspection: A Seller’s Guide to Repair Negotiations in Washington County

This is one of the most common flashpoints during a home sale in Washington County. After a couple of weeks on the market, you accept a great offer, the transaction goes into escrow, and the buyer sends over a licensed home inspector. A few days later, you are handed a 50-page report detailing dozens of deficiencies—and a demand from the buyer to fix them.

As a seller, your immediate reaction might be panic or frustration. You might wonder, “Am I contractually obligated to fix all of this just to sell my house?”

The short answer in 2026 is no. Strictly speaking, under the standard Utah Real Estate Purchase Contract (REPC), there is no such thing as a legally "mandatory" repair list generated by an inspection report. In Utah, properties are technically sold "as-is," meaning you have the right to refuse any repair request.

However, there is a big difference between what is legally mandatory and what is practically required to keep your contract from falling apart. Let’s look at how the repair negotiation works under the Utah REPC and the specific red flags you absolutely should fix to protect your home equity.

The Core Blueprint: Section 10.2 of the Utah REPC

To understand your obligations, you have to look at the mechanics of the Utah Due Diligence Period. When a buyer submits a repair request, they use a specific form called UAR Form 60: Resolution of Due Diligence Addendum.

If you choose to refuse the buyer’s requests or offer a partial compromise, the ball goes back into the buyer's court. If they are still within their contractual Due Diligence Deadline, they have the absolute legal right to cancel the contract entirely and walk away with 100% of their earnest money refunded.

If you take an uncompromising line and refuse to fix anything, your transaction will likely fail. You will then have to put your home back on the market, and you are legally required to update your Seller Disclosures to inform the next buyer about every defect the previous inspector uncovered.

🛑 The "Practical Mandates": Safety, Structure, and Lending Requirements

While you can say no to minor issues, there are certain critical categories where smart sellers always say yes. These are problems that affect safety, structural integrity, or a buyer’s ability to secure a mortgage loan.

1. Lender-Required Safety Fixes (FHA / VA / USDA Standards)

If your buyer is utilizing government-backed financing, the lender's appraiser will conduct an absolute health and safety audit. Lenders will completely deny loan approval until the seller repairs these structural or safety hazards:

• Electrical Risks: Exposed junction boxes, ungrounded outlets, or double-tapped breakers in the electrical panel.
• Water & Fire Safety: Broken water heaters, active plumbing leaks, missing smoke detectors, or missing carbon monoxide alarms.
• Fall Hazards: Elevated decks or staircases missing secure safety handrails.

2. Environmental Hazards (The Southern Utah Variables)

As we discussed in the buyer segment, Washington County rock and soil introduce specific environmental factors. If an inspector uncovers these, they must be addressed to preserve the value of the property:

• High Radon Gas: If a 48-hour radon test reveals levels above 4.0 pCi/L, most buyers will demand a radon mitigation system. Fortunately, these can be installed quickly by local specialists for around $1,500 to $2,000.
• Active Mold Growth: Moisture intrusion from a faulty window or a hidden plumbing line can trigger mold in dry desert settings. Professional remediation is practically required to satisfy structural safety guidelines.

3. Severe Structural Defects (Roof & Foundation)

If an inspector finds active foundation movement due to expansive blue clay soils or identifies a roof that has been completely blistered and compromised by the intense St. George sun, you cannot ignore it. Even if this specific buyer walks away, the next buyer’s lender will flag the exact same structural failure.

The Easy Alternative: Offering a Seller Credit

If you do not want the logistical headache of hiring contractors, managing repair timelines, and tracking down receipts before your closing date, you don't have to. You can negotiate to offer the buyer a closing cost credit instead.

Instead of fixing the master bathroom plumbing or replacing the aging water heater yourself, you agree to credit the buyer an equivalent dollar amount (e.g., $3,000) at final settlement. The title company deducts that amount from your net proceeds and applies it directly to the buyer's closing costs, allowing them to handle the contractors themselves after they take ownership.

Protect Your Transaction with Local Expertise

Every home inspection report looks scary at first glance. It is completely normal for an inspector to list 40 minor issues, like a loose outlet cover plate, an aging weatherstrip, or a dry-rotted sprinkler head.

My job as your listing advocate is to help you cut through the cosmetic noise. We will analyze the buyer's Form 60 request objectively, identify which items are legitimate threats to the buyer's loan approval, and negotiate a balanced resolution that protects your net equity while keeping your transaction moving safely toward the finish line.

Have you recently received a demanding repair list from a buyer, or want to know how to prepare your home to pass an inspection flawlessly? Let's connect today to build a strategic response plan.