Seller: the Buyer Wants a Price Cut Backed by a Contractor Quote, Read It Before You Answer

The request comes through the buyer's broker: a price reduction, with a contractor's quote pricing the work flagged during the inspection. For a seller, the first reaction is often emotional. The right reaction is a careful, line-by-line reading of the quote. It says a lot about what is negotiable, and time is short: the request usually arrives during the inspection condition period.

Budget quote or firm quote

A budget quote gives a ballpark. It often carries mentions like "subject to change" or "approximate labour", and a limited validity, for example one month. A firm quote commits the contractor to a price for precisely described work.

Both are legitimate support for a request. But a budget quote is an estimate: sellers can discuss its assumptions, which is harder with a firm price.

Tie each line to the inspection report

The first exercise is to put the quote next to the inspection report and classify each line:

• Tied to a report finding: a defect observed by the inspector, with a recommendation.
• Upgrade: an addition or improvement that is not a defect, such as better equipment than what is there.
• Normal upkeep: an item at the end of its life, predictable for a house of that age and visible during a visit.
• Possible surprise: a mention of extras if something is discovered, such as rot, billed by the hour.

Only the first category solidly supports the request. The others are open to discussion, and that is often where a counter-offer focuses.

Check the amounts

• Taxes: does the total include GST and QST? Comparing a tax-included total with a pre-tax request distorts the scale.
• Labour: an estimated number of hours is an approximation, not a verified figure.
• Ancillary fees: travel, fuel, container, often real but small.
• Share requested: a buyer asking for about half the cost already acknowledges that part is upkeep; a request matching the quote to the dollar leaves more room for discussion.

Possible answers

• Accept the requested reduction, if it is reasonable and the sale matters more to you than the gap.
• Counter with an amount based on your classification of the lines, through the amendments form your broker prepares.
• Do the work yourself before the deed of sale, with a contractor of your choice, which takes time and a clear description of the work.
• Offer a holdback at the notary, released when the work is done.
• Refuse, knowing the buyer can then withdraw if their inspection condition allows it.

Our article on negotiating after an inspection compares these options from the buyer's side.

Keep in mind what you'll have to disclose

The defects revealed by the inspection are now known to you. If this sale falls through, they will have to be taken into account with the next buyers, including in the seller's declaration. A reasonable deal with the current buyer, who already knows the defects and still wants to buy, is often worth more than relisting.