How is inspection report negotiated.

[Mike Nelson]

From the standpoint of both the buyer and seller, how is the inspection report negotiated?   My uncle in Green Bay, WI is selling the home he purchased brand new in 1965 in selling it.  He maintained the home well, but it did not do too much in the way of renovating kitchens and bathrooms.  Electrical is essentially as when it is built.  Furnaces and water heaters were replaced and fairly new.  The buyer's inspection came back stating the main electrical box is insufficient in capacity (was good in 1965), and does not have proper clearance technically.  It has too few smoke detectors and some wiring in attic done in 1990 for rec room is not up to code.  Door into garage  in not fire-rated, a code issue.  If the seller comes back with demands, does the seller make the repairs, offer a credit, split the difference, or what?  Things like older finishes were obvious to the buyer and not contested, but things like electrical issues, which are not obvious to a typical buyer, as expected are contested.  How is the seller to respond to these requests?  On the other hand, is this something a buyer can use a tool to extract a lower price?