A$80,560 inspection issues: seller repairs, credit or lower price?

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jules.wren

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The inspection on a 175 m² Brisbane townhouse found several genuine but manageable issues, with estimates totalling about A$80,560. The seller has offered to organise the work, but I would rather choose the contractors and control the standard.

Would a credit at settlement generally be more useful than reducing the purchase price? I’m checking whether the lender limits concessions, particularly if the valuation creates an appraisal gap. I also need to respond within the inspection deadline and don’t want to put the deposit at risk. Interested in how others would structure this, including what financing proof or repair quotes the seller might reasonably request.
 
If the lender permits it, a settlement credit gives you more usable cash for the work; an equivalent price reduction may only slightly change the loan and repayments. But A$80,560 is large enough that the lender, conveyancer and contract wording all matter. I wouldn’t let the seller start repairs until responsibility, scope, invoices and completion timing are unambiguous.
 
Are all the estimates for urgent defects, or does the total include upgrades and items nearing the end of their life? That distinction will affect negotiations. Also, how does the agreed price compare with completed sales of similar Brisbane townhouses in comparable condition?
 
I’d push back on assuming a credit is automatically best. If the lender caps concessions, part of it may be unusable, and the property still has to support the contract price at valuation. A reduction could help if you are already paying above completed comparables, though it won’t leave much cash in hand for repairs.

Seller motivation matters too. A seller focused on a fixed settlement date may prefer a defined credit; one worried about the headline sale price may prefer arranging selected repairs. The cleanest proposal may be a combination: price adjustment for value-related defects and a permitted credit for urgent work.
 
Before choosing, send the inspection report and itemised quotes to the lender or broker and ask for the maximum allowable credit in writing. Then have the conveyancer frame the request before the response deadline. Don’t rely on a casual promise that repairs will be completed later.
 
Also preserve the inspection protection while negotiating. If the deadline expires before an amendment is signed, the deposit exposure could matter more than the form of the concession. I’d prioritise the defects by urgency, ask for evidence behind any seller-completed work, and keep an exit option if the valuation, finance approval or final repair arrangement no longer makes the townhouse viable.
 
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