An inspection objection is the buyer's formal request, after the inspection, for the seller to fix things, give a credit or lower the price. In Colorado, it's done on the state-approved inspection objection form by the deadline in the contract. Here's how I handle it. Sort the report into big, medium and small. Ask for the big items. Prefer credits over seller repairs when it makes sense. Hit every deadline. Keep the tone calm and specific so the deal holds together.
The short answer
Most inspection reports look scary. Most items are small. Focus your buyer on safety, structure, water and big systems. Get contractor estimates. Ask for a fair fix. Know your deadlines cold.
Step by step
- Attend the end of the inspection. Let the inspector walk the buyer through the big stuff.
- Read the full report the same day. Not just the summary.
- Sort it.
- Big: safety, structure, roof, water intrusion, sewer, electrical hazards, furnace, foundation.
- Medium: water heater age, minor leaks, grading, gutters.
- Small: cosmetic, maintenance, missing caulk, loose handles.
- Get specialists if needed. Sewer scope, structural engineer, roofer, HVAC. Do it fast. Deadlines don't move.
- Get estimates. Real numbers from contractors.
- Decide the ask. Repair, credit, price reduction, or a mix. Credits often work best: the buyer controls the work and the seller avoids hiring contractors.
- Write it on the approved form. Specific items, specific remedies. In Colorado, use the CREC-approved Inspection Objection form. Check wording with your managing broker.
- Send before the deadline. A day early, not an hour late.
- Negotiate the resolution. The seller can agree, counter or refuse. Agree in writing by the resolution deadline, or the buyer decides whether to proceed or terminate under the contract.
A worked example (illustration only)
Report: 64 items. After sorting:
| Item | Category | Estimate | Ask |
|---|---|---|---|
| Sewer line belly with standing water | Big | $6,500 | Credit |
| Furnace cracked heat exchanger | Big | $5,800 | Credit or replacement |
| Missing GFCI outlets in kitchen | Medium | $350 | Seller repair |
| Loose railing on deck stairs | Big (safety) | $400 | Seller repair |
| 58 small items | Small | — | None |
Request: $12,300 credit toward closing costs or a price reduction, plus seller repair of GFCIs and the stair railing by a licensed contractor with receipts.
Illustration only. Costs vary. Get local estimates.
How to explain it to your client
To the buyer:
"Every inspection report looks long. That's normal. The inspector's job is to write everything down. Out of 64 items, four really matter. The sewer and the furnace are the big ones. Let's ask the seller to cover those with a credit, so you can pick your own contractor. The little stuff is normal homeowner maintenance. If we ask for everything, we risk losing the house over caulk."
To the seller (listing side):
"The buyer focused on the big items, which is a good sign. They're serious. The sewer and furnace would show up for any buyer, so the next buyer would ask too. A credit is usually the easiest path. You don't have to hire anyone or delay closing."
Watch-outs
- Deadlines. Missing the objection deadline can waive the buyer's right to object. Calendar them on day one.
- Don't diagnose. Say "the inspector noted" or "the roofer estimated." Don't play contractor.
- Lender limits on credits. Credits count toward concession caps. Check with the lender.
- Seller repairs. Ask for licensed contractors and receipts. Plan a re-inspection.
- Small-item lists. They irritate sellers and can sink deals.
- As-is sales. HUD homes and many bank-owned homes don't negotiate repairs. See HUD as-is inspections.
This is training for real estate agents. It isn't legal advice. Use the CREC-approved forms and check with your managing broker.
Questions
Should we ask for repairs or a credit?
Credits are often cleaner. The buyer controls the work. The lender must allow it.
What if the seller says no to everything?
The buyer decides: accept, renegotiate or terminate under the contract terms. Check deadlines.
Can the buyer walk away after inspection?
Under many contracts, yes, by the deadline, using the approved form. Follow the contract exactly.
Should I send the whole inspection report to the seller?
Follow your contract and brokerage policy. Often only the objection is sent.
What counts as a big item?
Safety, structure, water, roof, sewer, electrical hazards and major systems.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.