Credits vs. Repairs: What Works Better in Florida Negotiations

Before diving into the credits-vs-repairs decision, it helps to understand what buyers can reasonably ask for during inspection negotiations.

1) Why credits are so popular in Florida (especially in 2026)

Credits are attractive because they reduce friction:

• Buyers control the contractor and quality. No rushed "cheapest fix" the week before closing.

• Sellers avoid managing trades and coordinating access.

• It can keep timelines cleaner, which matters in South Florida where insurance delays are already common.

• Credits make it easier to "solve" multiple small issues with one number.

But credits are not magic. Your lender and closing structure determine how useful a credit actually is.

2) The main downside of credits (what buyers misunderstand)

A) Credits do not always equal cash in your pocket

A seller credit is typically applied to allowable closing costs and prepaid items, not handed to the buyer as a check. If your closing costs are already covered, "extra credit" may not help. For example, if your allowable closing costs total $9,000 and you negotiate a $15,000 credit, the unused portion typically cannot be refunded to you.

B) Credits can be limited by loan type and down payment

There are caps and rules that vary by scenario. If you push for a credit that cannot be used, it creates renegotiation fatigue and delays.

C) Insurance and underwriting problems do not go away with a credit

If the issue affects insurability, a credit does not help unless the problem is fixed before a policy can be bound.

This is why understanding Florida's insurance landscape is essential before deciding between credits and repairs.

3) When Repairs Work Better Than Credits (Insurance, Safety, and Lender Triggers)

Repairs often win when the issue is tied to safety, insurability, or lender conditions, such as:

• Active roof leaks or roof documentation issues that slow underwriting

• Electrical hazards (panels, double taps, exposed conductors)

• Plumbing leaks or known shutoff failures

• HVAC not functioning (especially in Broward, Miami-Dade, Palm Beach)

• Water intrusion or moisture concerns that raise underwriting red flags

• Any item likely to show up in a 4-point inspection requirement

In these cases, a seller credit can still be part of the solution, but the deal often needs a fix (or proof of fix) to keep moving.

4) When credits work better than repairs (and keep sellers cooperative)

Credits usually work best when:

• There are multiple small-to-medium issues (a "death by a thousand cuts" report)

• The repairs are non-urgent and can be handled after closing

• The buyer wants to upgrade rather than simply repair (sellers resist paying for improvements)

• The seller is occupied, out of state, or unwilling to manage contractors

• The buyer wants to avoid last-minute workmanship disputes

A credit is also a great tool for keeping negotiations calm in competitive markets, where sellers fear extended back-and-forth. In hot markets, buyers also benefit from strategies that help them compete with cash offers.

5) The simplest "decision tree" buyers can use (Credits vs Repairs)

This is the same filter lenders and underwriters implicitly apply, even if they don't explain it this clearly.

Use this quick filter:

1. Will this issue block insurance binding or create a lender condition? If yes → lean repairs (with receipts, permits, and photos when relevant).

2. Is the repair quality hard to verify or likely to be rushed? If yes → lean credit (buyer controls the work).

3. Is it one big-ticket item with a clear scope (ex: fix leak, replace a failed component)? If yes → repairs can be clean.

4. Is it a bundle of smaller issues? If yes → credits are usually cleaner.

5. Does the credit actually help your closing math? If not → negotiate a different structure (repairs, price change, or a credit that fits allowable costs).

When evaluating your negotiation strategy, it helps to think beyond the inspection and consider the full cost of owning a home in South Florida.

6) Common negotiation mistake: asking for repairs and a big credit

Sellers typically respond better to one clean request because it signals certainty, not leverage:

• "Repair X by licensed contractor and provide receipt," or

• "Credit $Y at closing so buyer can complete repairs."

When buyers stack multiple asks, it signals they may keep re-trading later.

Final takeaway

In Florida negotiations, credits are often the smoother path, but repairs are the safer path when the issue affects closing, insurance, or safety. The best 2026 strategy is a short request list that prioritizes what impacts the ability to close, then uses credits for everything else.

If you're concerned about how your down payment affects your negotiating position, remember that you don't need 20% down to buy a home in South Florida.

Next Steps

• Book a strategy call: Schedule a call to review your plan and avoid costly mistakes

• Get pre-approved in minutes: Start your application now

• Explore Florida homebuyer programs: Learn about low-down-payment and first-time buyer options

EZ Funding Group, Inc. NMLS #349022 | Jaime Charouf NMLS #348964 | Equal Housing Lender