I would expect if it were the buyer's HI, they would use the contractor's repair estimate to only demand a deduct at the closing. Then money may be tight and they may forget about it after the closing.
With the seller and the HI report, I would expect they would be more inclined to have it fixed instead of giving the credit to the buyer. But some sellers may generally be afraid of, or unsure of, hiring contractors themselves and prefer to let the buyer handle it by agreement so they do not have to touch it.
Either way it presents a high probability of an inspecting contractor not doing the work. Business is about doing what the customer wants done.
Seen it go both ways. Changed a service for the seller on the HI's report (some tiny ancient overpriced old POC home). At the end of the day reconnected power to the boiler and it ran ran ran without stopping as I finished up.
So I checked it and immediately saw it was some obsolete antique from like the 1930's, steam when it should have been hydronic, saw it was missing a few current code safeties like a high limit and LWCO. It was obvious the boiler was a yank and replace. So I cut power to it so I could leave it safely overnight and wrote the deficiency email immediately that day (unoccupied estate sale house).
Got a call the next day they're crying, the house is cold and I had broken the boiler. They had not seen my email. But in discussion they did say they were surprised when they saw how fast it could gobble oil.
Turns out the HI had also seen the boiler and recommended the seller provide a special insurance policy just for the boiler that it would run for one year, at a cost of $500. Not a credit of $500, an added expense of $500.
I had listed code deficiencies and strongly recommended they were crazy to pay the $500 for added insurance. The boiler should come out for $5000 or the smart way to do it would be a steam to hydronic conversion. They needed a new heating system.
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