Your options when a point-of-sale inspection finds expensive repairs

Updated November 2026

What to do when a city point-of-sale inspection, sewer lateral test or dye test turns up expensive repairs: fix it, escrow it, pass it to the buyer, or sell as-is.

A failed sewer lateral test or a long violation list does not have to kill a sale. Most cities give sellers four paths.

1. Fix it before closing

This gives the cleanest sale and the widest pool of buyers. Get at least two quotes from contractors the city accepts, since some cities require registered or approved contractors.

2. Escrow the repairs

Many Ohio cities let you close if 100% to 150% of a contractor estimate is held in escrow. California agencies offer time extensions with deposits from $4,500 to $10,500.

3. Let the buyer assume the work

Minneapolis, Euclid, Morgan Hill and many Pennsylvania towns let a buyer sign for the repairs. Expect a lower price or a credit.

4. Sell as-is to a cash buyer

Investors who buy houses as-is handle point-of-sale violations routinely. You give up some price for speed and certainty. Get more than one offer and compare it with the cost of option 1 or 2.

Get repair quotes or an as-is offer