The inspection response is one of the moments in a transaction where sellers most frequently make avoidable mistakes. It comes after the offer is signed and the home is off market - a moment when sellers feel pressure to resolve things quickly and buyers know it.

Understanding how inspection responses actually work in Washington, and the strategic considerations behind each option, puts sellers in a better position before they are in that moment.

How Washington State Handles Inspection Responses

In Washington, once the buyer completes their inspection, they have until the end of their inspection contingency period to submit a Form 35 - the Inspection Addendum. This form is how buyers formally communicate findings and what they are asking for.

Sellers then have three options in response. Each one has a different effect on the transaction.

1. Agree to the buyer's requests

The seller agrees to repair specific items or provide a credit as requested. This keeps the transaction on track and removes the inspection contingency.

Where sellers make mistakes: agreeing to repair items without specifying the scope. "We'll fix the roof" is not the same as "we'll replace the roof with a licensed contractor before closing." Vague repair agreements leave room for disputes at the final walkthrough. Every repair agreement should specify who does the work, what the scope is, and what the standard of completion looks like.

2. Counter the buyer's requests

The seller responds with a modified version of what the buyer asked for - agreeing to some items, declining others, or offering a credit in place of a repair.

This is usually the most useful response when the buyer's list is longer than the seller thinks is warranted. Rather than accepting everything or declining everything, a counter lets the seller address legitimate items while pushing back on requests that go beyond what the condition of the home supports.

The language matters here. A counter that reads as adversarial can damage a transaction that was otherwise in good shape. The goal is to narrow the gap, not win an argument.

3. Decline to do anything

The seller declines to repair or credit anything. Under Washington's Form 35 process, this gives the buyer the right to either accept the home in its current condition and remove the contingency, or exit the transaction and recover their earnest money.

This is sometimes the right call - particularly on homes that were priced to reflect known condition issues, or where the buyer's requests significantly exceed what is reasonable given the purchase price. But sellers who decline everything without explanation frequently lose buyers who would have accepted a smaller concession. The cost of re-listing and finding a new buyer usually exceeds the cost of a reasonable credit.

Repair vs. Credit: Which One Makes More Sense

Sellers often default to offering repairs because it feels more controlled. The buyer asked for something to be fixed; the seller fixes it. But repairs carry real risk that credits do not.

When you repair a defect, you are taking on responsibility for the quality of that work. If the repair is done poorly or the issue recurs before closing, you are back in a negotiation. If a contractor schedules the work for three days before closing and it runs late, you have a timeline problem.

Credits are cleaner. The buyer receives a defined dollar amount at closing - either as a direct reduction or applied toward closing costs - and they handle remediation on their own timeline with their own contractor. There is no post-repair walkthrough dispute, no contractor scheduling risk, and no question about quality.

The exception: lenders will sometimes not allow large seller credits because they affect the loan-to-value calculation. If your buyer is financing at a high loan-to-value ratio, check with them before offering a large credit to make sure it can actually be applied.

What the Inspection Report Tells a Seller About Buyer Psychology

A buyer who submits a Form 35 with 22 line items is usually a buyer who is nervous and looking for reassurance, not a buyer who expects all 22 items to be addressed. Most experienced agents will tell you the same thing: long inspection lists often indicate an anxious buyer, not an unreasonable one.

The way to read an inspection response is to identify which items the buyer actually cares about - usually the ones with the most specificity or the highest dollar estimates - and address those directly. Responding to the three items that matter while declining the twelve that do not will land better than a blanket refusal of everything.

The Final Walkthrough Is Where Repair Agreements Are Tested

Whatever was agreed to in the inspection response, the buyer has the right to a final walkthrough before closing to verify the home's condition. If repairs were promised and not completed, or if the home's condition has changed since the initial showing, the buyer can use the walkthrough to raise concerns.

Sellers who complete agreed repairs with licensed contractors and keep documentation - invoices, photos, permits where required - have almost no exposure at the walkthrough. Sellers who use handymen or do the work themselves without documentation are more likely to face a second negotiation right before closing.

When to Push Back and When to Move On

The calculation is straightforward: what is the cost of this buyer versus the cost of re-listing?

Re-listing a home that has already been under contract carries a stigma. Buyers ask why it fell out. Days on market resets. Depending on the season, you may be going back on market at a worse time than you listed originally. In the spring market, that exposure window matters more than most sellers expect.

That does not mean accepting every request. It means having a clear-eyed view of what re-listing actually costs before you decide a $4,000 credit is a dealbreaker.

If you are heading into spring and want to understand how to prepare for the inspection negotiation before you list, that conversation is worth having early. Reach out directly.