Seller guidance · Under contract
What sellers can expect at inspection and appraisal
An accepted offer is the beginning of the buyer’s evaluation—not the end. Inspections, repair discussions, financing and appraisal can each create new questions. A clear process helps the seller respond without losing sight of the original goal.
Why buyers inspect
A home inspection helps a buyer understand what they are purchasing.
As a buyer’s agent, I strongly recommend that buyers hire a qualified home inspector. A house is a major purchase, and even a well-maintained property can have conditions that are not obvious during a showing. The inspection gives the buyer a fuller picture of visible systems, components, safety concerns, maintenance needs, and areas that may deserve specialist evaluation.
A general home inspection is not a warranty, an appraisal, a code-compliance certificate, or a guarantee that every concealed condition will be found. Depending on the property, a buyer may also choose roof, HVAC, electrical, plumbing, structural, septic, well-water, sewer-scope, radon, mold, chimney, pool, survey, or other specialist evaluations.
More than one inspection
A termite or wood-destroying-insect report is a separate evaluation.
A lender or loan program may require a wood-destroying-insect report based on the property, location, visible evidence, program rules, or underwriting. A buyer may also request one even when the lender does not. This inspection is different from the general home inspection and is commonly documented through a Wood-Destroying Insect Report, often called a WDIR.
Other specialized inspections may be triggered by the general inspector’s observations or by the property’s features. Sellers should keep the agreed access available during the due diligence period and understand that inspection schedules do not automatically extend the buyer’s contractual deadlines.
General inspection
The inspector reports visible conditions and recommends further evaluation when appropriate.
Specialists
Qualified contractors or professionals evaluate systems or concerns outside the general inspection’s scope.
Buyer priorities
The buyer decides which findings matter most in light of budget, safety, financing and long-term plans.
DDRA
The buyer may submit a Due Diligence Request and Agreement with specific proposed repairs, credits or other terms.
Negotiation
The parties may agree, reject, counter or choose another contract option available to them.
The DDRA
The inspection report informs the request; it does not decide the outcome.
After inspections are complete, many North Carolina buyers submit a Due Diligence Request and Agreement, commonly called a DDRA. The request may be accompanied by the relevant pages, photographs, or sections of an inspection report so the seller can understand the condition behind the request.
A useful request is specific. It identifies the item, the requested result, any licensed-contractor expectation, documentation, credit or concession amount, and completion timing. The seller is not automatically required to make a requested repair or provide a concession unless an existing agreement or other binding obligation says otherwise.
The seller may accept the request, reject it, agree to selected items, propose a credit, adjust another term, or negotiate a different solution. Whether an agreement is reachable depends on the condition, lender requirements, due diligence timing, available contractors, buyer and seller finances, the strength of the original offer, market conditions, and each party’s goals.
Repair
The seller completes clearly described work, often with a qualified or licensed professional and documentation.
Credit or concession
The seller contributes toward permitted buyer costs, subject to the contract, lender, appraisal, program limits, and actual eligible expenses.
Price or terms
The parties may adjust price or another negotiated term when that approach fits the financing and their goals.
Concession limits are ceilings—not promises
A loan program may allow assistance without requiring the seller to provide it.
Seller concessions can help a buyer cover allowable closing costs, prepaid expenses, discount points, or other program-permitted items. They can also preserve buyer cash for post-closing repairs. The buyer cannot simply receive unlimited cash back, and an unused portion generally does not become a windfall. The lender and closing attorney must apply the credit correctly.
The examples below are common agency or program limits, not a substitute for the buyer’s lender calculation. Loan structure, occupancy, down payment, appraised value, actual costs, lender overlays, and current guidelines can change the usable amount.
| Loan type | Common maximum framework | Important seller context |
|---|---|---|
| Conventional | For many Fannie Mae primary-residence or second-home loans: 3% above 90% LTV, 6% from 75.01%–90% LTV, and 9% at 75% LTV or below. Investment-property financing concessions are commonly capped at 2%. | This is an agency example, not every conventional product. The lender must identify the applicable cap and allowable expenses. |
| FHA | Interested parties may generally contribute up to 6% of the sales price toward permitted borrower closing costs, prepaid items and discount points. | The seller is not required to offer 6%. Contributions over program limits can affect the transaction, and a credit cannot replace a repair the lender requires. |
| VA | VA-defined seller concessions are generally limited to 4% of the property’s established reasonable value. Certain customary closing costs and points are analyzed separately from that 4% definition. | VA fee rules are detailed. The lender and closing professional should confirm which seller-paid amounts count toward the cap. |
| Cash | No mortgage-program concession ceiling applies. | The contract, settlement figures, tax or legal considerations, and the parties’ agreement still control what can be paid or credited. |
Appraisal and lender-required repairs
A negotiated credit may not solve a condition the lender requires to be corrected.
An appraisal provides an opinion of value for the lender and may also identify observable property conditions. FHA and VA programs apply minimum property requirements or standards intended to address safety, security and soundness. Peeling paint on an older home, missing handrails, active roof problems, exposed wiring, broken windows, inadequate utilities, or other conditions may trigger additional review or repair, depending on the facts and program.
FHA and VA are often more prescriptive about property condition, but conventional lenders can also require repairs when an appraiser or underwriter identifies a significant safety, structural, habitability, insurability, or collateral concern. The appraiser does not perform the same inspection as a home inspector, and a clean appraisal does not mean the home has no defects.
If the lender makes a repair a condition of the loan, the parties must decide whether the seller will complete it, another lender-approved solution exists, the buyer can change financing, or the transaction cannot proceed. A seller can decline a request, but the buyer may then be unable or unwilling to close under the proposed financing.
Newly discovered material facts
If the transaction ends, the information does not simply disappear.
An inspection report can bring a previously unknown condition to the attention of the seller and listing agent. Not every maintenance item or inspector observation is legally material. But when the information concerns a material fact, the parties must treat it appropriately under North Carolina disclosure and real estate-license requirements.
If the seller does not repair the condition or offer a concession and the buyer terminates, the property may return to the market. The seller may need to update the property disclosure as applicable, and the listing agent has an independent duty concerning material facts. The exact obligation depends on the facts, so legal questions should be directed to a North Carolina attorney.
Why strategy matters
A known defect can change the next buyer’s decision.
- Some buyers may decide not to pursue the property after reviewing the disclosed condition
- The condition may narrow available loan programs or create a pre-closing repair requirement
- Future offers may include a lower price, larger due diligence protection, repair request, or concession
- Days on market and a return to active status can change how buyers evaluate negotiating leverage
- A completed, documented repair may restore confidence, but it does not erase the history
- Accurate disclosure can reduce surprise and dispute even when the condition affects marketability
The defect—not honest disclosure itself—is the underlying issue. Its effect on value depends on severity, repair cost, financing impact, documentation, market conditions, and buyer demand.
A goal-centered response
We evaluate the request against the seller’s complete plan.
Understand the condition.
Review the relevant report sections and obtain qualified estimates or specialist input when needed.
Separate request from requirement.
Identify what the buyer wants, what the lender requires, and what the contract already obligates.
Calculate the options.
Compare repair cost, concession limits, estimated net, timing, contractor availability, and future disclosure implications.
Protect the deadline.
Track the due diligence period, appraisal, repair completion, reinspection, financing and closing dates.
Document the agreement.
Use clear written terms describing the work, credit, proof of completion, access, or other negotiated solution.
Stay aligned with the goal.
Choose the response that best balances net proceeds, certainty, timing, condition and the seller’s next move.
Inspections do not have to turn a transaction into a fight. When both parties understand the condition, financing and priorities, a practical agreement is often possible. My job is to keep the information organized, explain the choices, coordinate with the appropriate professionals, and help the seller make a deliberate decision.
Official references
Inspection, financing and disclosure sources
This article provides general educational information and is not legal, lending, appraisal, tax, insurance, engineering, pest-control, contracting, or inspection advice. Forms, loan rules, concession calculations, lender overlays, property conditions and contractual rights vary. Consult the appropriate licensed or qualified professional for the transaction.
Fannie Mae interested-party contributions ↗HUD FHA Handbook 4000.1 ↗VA Lenders Handbook ↗NC Real Estate Commission contract information ↗NC Residential Property Disclosure Act ↗Estimated reading time: 6–10 minutes · Last reviewed: August 2026 · Confirm current requirements and advice for your specific transaction.