The Science of Real Estate
After a pre-purchase inspection turns up problems, a buyer generally has two options: ask the seller to make the repairs themselves, or negotiate a credit — an amount deducted from the sale price. David Tardif comes down clearly in favour of the credit, and his reasoning has as much to do with human psychology as with experience in the field.
Why a seller who repairs things themselves rarely makes the best decision
“Often, I prefer a credit or a price reduction,” explains David Tardif. “And here’s why: when the seller handles repairs themselves, there’s an incentive to do it fast and cheap, because they’re leaving. The result is sometimes a cosmetic fix that comes back to bite you two years later.”
A credit, by contrast, gives the buyer full control: they choose the contractor, the timing, and the quality of the work. They protect their home according to their own standards — not those of a seller in a hurry to move on.
The theory behind the instinct: hyperbolic discounting
What David observes in the field has a name in behavioral science: hyperbolic discounting. This widely documented cognitive bias, well established in behavioral economics, describes our tendency to place far less value on the future consequences of a decision than on its immediate cost or effort — especially when we won’t be around to experience those consequences.
For a seller who’s moving away, the quality of a repair two or three years down the road carries almost no decisional weight: that problem will belong to someone else, in a house that will no longer be theirs. The related concept of psychological distance (Construal Level Theory, Trope & Liberman) reinforces this reading: the more distant a future event feels to us — whether in time, or because it will affect someone else — the more abstract, quick, and careless our decisions about it tend to become.
In other words: this isn’t necessarily about bad faith. It’s a predictable human bias that structurally favours speed over durability for someone who’s on their way out.
What this means in practice for a buyer
Understanding this bias makes for better post-inspection negotiation. Since the seller is structurally pulled toward the fast, cheap option, asking for a credit instead of repairs removes that problematic incentive from the equation — and hands the decision to the person who will actually live with the result: the buyer.
If the seller insists on doing the repairs themselves, require a minimum standard: that the work be done by a licensed professional, backed by an official invoice and a written warranty. A repair done by someone who’s on their way out is worth double-checking before the transaction closes.
Frequently asked questions
After an inspection, is it better to ask the seller to make repairs or negotiate a credit?
In the vast majority of cases, a credit or price reduction is preferable. A seller who’s leaving has little incentive to do repairs well — they often choose the fastest, cheapest option, which sometimes results in cosmetic fixes that resurface a couple of years later. A credit gives the buyer full control over the contractor, the timing, and the quality of the work.
Why does a seller who repairs things themselves sometimes do lower-quality work?
Hyperbolic discounting partly explains this bias: a person who won’t experience the future consequences of a decision, because they’re moving away, places much less weight on long-term quality, and much more on immediate cost and speed.
If the seller insists on doing the repairs themselves, what should you do?
Require a minimum standard: that the work be done by a licensed professional, with an official invoice and a written warranty. A repair done by someone who’s about to leave is worth double-checking before closing the transaction.
This content is informational and reflects the professional opinion of David Tardif, real estate broker (OACIQ). It does not constitute personalized legal or technical advice — for any specific situation, consult a licensed home inspector or a qualified professional.