Volume #53: The Biggest Mistake First-Home Buyers Make When Negotiating Repairs in the Building Report

Read Time: 4 minutes

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The building report said “unlevel floors.”

The agent said, “No problem, they’ll fix it".

Our client was relieved.

A $25,000 fix sorted before settlement. Or so they thought.

But “we’ll fix it” is not a deal. It’s a trap — unless you lock in the details.

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PROBLEM

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The most common mistake I see?

Buyers hearing that the seller “agrees to do the work” and thinking that’s enough.

Here’s what usually happens:

• The seller hires someone cheap
• The work gets done quietly, without oversight
• The buyer turns up to settlement with no way of knowing if it’s been done right

In our case, that “Yes” from the agent could’ve cost the buyer everything.

The bank wasn’t going to lend until the floor was sorted. So, if it wasn’t fixed properly, there’d be no money.

No deal.

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RISK

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• The seller might do it themselves (yes, really)
• There’s no independent check of the work
• There’s no clear dispute path if the buyer says “this isn’t good enough”
• There’s no way to delay settlement if the work isn’t done right

Financially?

You’re gambling with your client’s ability to even settle.

Emotionally?

They’re buying a problem, not a home.

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CONTEXT

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If your client's lawyer does not control the process, then they are buying a problem, not a home!

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SOLUTION

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Process: Here’s what we did for our client (you can copy this playbook):

1. Who is doing the work?
   a. Name the builder or require a licensed professional.
   b. Define the work which will be completed.
   c. Explain who gives notice when the work has been completed.
2. What’s the scope and material standard?
   a. Define exactly what needs fixing, how it’s to be done, and with what products.
3. Who checks the work?
   a. Appoint an independent inspector to review it before settlement.
4. What if it’s not done right?
   a. Include a dispute resolution clause. Make it clear settlement can’t happen until the standard is met.
5. When can settlement happen?
   a. Tie it to a formal sign-off, not just “the work’s been done.”

In our case, this took a few extra hours of legal work. The seller paid for the $25K fix. The buyer settled with peace of mind.

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Example: Kitchen Floor Repairs

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TL;DR

• “We’ll fix it” means nothing unless the work is defined, supervised, and verified
• Control who does the work, how it’s done, and how it’s reviewed
• No clause, no confidence—protect your client or risk settlement delays