This is one of the most common questions we hear from sellers and agents, and the honest answer surprises people: in Arizona, no law requires you to make a single specific repair after a home inspection. Repairs are negotiated on the BINSR, and you get to agree to all, some, or none. So when someone says a fix is "mandatory," what they really mean is one of two things, and both are worth understanding before you spend a dollar.
Where "mandatory" actually comes from
A repair becomes effectively non-negotiable for one of two reasons:
- The buyer will walk. Real safety and habitability issues, an active leak, exposed wiring, a gas concern, are the items a buyer is most likely to cancel over if you refuse. Not legally required, but practically required if you want this deal.
- The lender requires it. This is the big one most sellers miss. The buyer's appraiser, not the inspector, can flag conditions that have to be fixed before the loan will fund. If it's not done, the buyer literally cannot close.
Everything else, the cosmetic and minor-wear items, is genuinely optional. That's where reasonable sellers hold their ground.
Lender-required repairs (the ones you usually can't dodge)
Lender repairs come from the appraisal and focus on three things: safety, soundness, and a home that actually works. The list gets stricter as you move from conventional to FHA to VA. Items that commonly get flagged:
- Exposed, damaged, or unsafe electrical wiring and open panels
- Inoperable systems, HVAC, water heater, plumbing, or electrical that doesn't function
- Roof problems with little remaining service life, or active leaks
- Active water intrusion, significant water damage, or visible mold
- Structural concerns, foundation movement, or compromised load-bearing areas
- Missing handrails on stairs, broken windows, and similar safety hazards
- Missing smoke and carbon monoxide detectors
- On FHA files, peeling or chipping paint on homes built before 1978 (lead-paint rule)
FHA and VA loans add their own minimum property standards. And in Arizona specifically, VA loans generally require a wood-destroying-insect (termite) inspection, with any active infestation treated before close, which matters here because termites are common across the Valley even in our dry climate.
What's almost always optional
These show up on nearly every report, but they're cosmetic or normal wear. You can decline them without putting the loan at risk:
- Scuffed paint, small drywall dings, dated finishes
- Worn flooring or carpet
- Minor, stable cracks in stucco or tile
- Older but working appliances and fixtures
- "Recommended upgrades" the inspector notes as maintenance, not defects
Here's the money-saving point: the buyer's agent will often list everything, because it costs them nothing to ask. You are not obligated to say yes to the wish list. Fix the safety and lender items, be reasonable on the rest, and don't lose a deal fighting over a $40 outlet. We break the seller's choices down in seller BINSR response options.
So what should a seller actually do?
Knowing what's mandatory only helps if you also know what it costs. Plenty of sellers over-promise on the lender items because they panic, or refuse cheap fixes that would have closed the deal. The smart move is to get one complete, itemized number first, then respond with confidence. That's exactly what we do: send us the BINSR and we return a full quote, every trade, paint and drywall included, within 24 hours, in time for the 5-day seller response. New to the form? Start with what a BINSR is, or see who actually pays for repairs in Arizona and every trade we cover.
This is general information, not legal or lending advice. Loan requirements vary by program and lender, so confirm the specifics with the buyer's lender and your agent before you commit on the BINSR.
Frequently asked questions
Are any home inspection repairs legally required in Arizona?
No. Arizona has no law forcing a seller to make a specific repair. Repairs are negotiated on the BINSR, where you can agree to all, some, or none. Safety items (buyer-walkaway risk) and lender-required items are what make a fix effectively non-negotiable.
What repairs do lenders require?
Appraiser-flagged issues affecting safety, soundness, and a working home: unsafe wiring, inoperable HVAC/plumbing/electrical, roof or leak problems, structural issues, missing handrails or detectors. FHA and VA are stricter, and VA in Arizona generally requires a clear termite report.
Do I have to fix everything on the inspection report?
No. The report lists everything observed; the buyer only requests certain items on the BINSR and you decide which to repair. Cosmetic and minor-wear items are generally optional.
Are termite repairs required in Arizona?
On VA loans, generally yes, a wood-destroying-insect inspection is required and active issues must be addressed before close. On conventional and many FHA files it's negotiated on the BINSR, though buyers commonly insist on active-termite treatment.
Not sure what you'll have to fix, or what it costs?
Send us the BINSR. We'll return one complete, itemized quote in 24 hours, so you respond with real numbers and protect the deal.
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