What does your agent say?

The safety issues are a must - the others are wish list items. Nice for them, but not a must for you and nothing that would prevent another/different deal from happening like say some major structural issue that was discovered that you now have to disclose and would likely affect future offers. You have already accepted the lower offer and are paying 3/4 of closing costs (which is AWESOME for them), sounds like they are trying to "make up" the rest on the hot water heater and the pool liner. The disclosure should have already listed the age (approx at least) of the hot water heater and likely the pool liner, so they knew that going in - I wouldn't acquiesce to their wish list unless you are ready to just get rid of the house and don't want to wait for a different buyer to come along.

Take other offers if you can. I understand safety issues but others are just ridiculous. If you can move on. If they wanted a new house with no issues they will not find it. all houses have their issues weather new or old. At some point you have to draw the line.

as a buyer i expect safety issues to be taken care of..or neccessary repairs, like leaks etc

the rest, I don't expect of a seller to give me. It's a house. Requires maintenance etc. I either can afford it, in my current situation, or I can't.

depends how pressed you are to work with these buyers, for whatever reasons

I wouldn't be too happy as a seller with some of their requests for sure. like a pool liner. so it has short life expectancy. does it present a problem now? no, it doesn't. They'll take care of it when the house is theirs. With their own 3K.

I'd try to draw a line too.

They might be fine with it too btw. Some people, they think "we'll ask, and see what happens". Like it's fishing, you know?

With such buyers, you might find, to your surprize, they're fine with the line you drew.

I don't know about moisture-damaged wood..is there potential mold problem, or is it crumblling, or what?

What are the concession numbers as a percentage of the purchase price? They are a bigger deal if the house price is $200k. Less of an issue if the house price is $600k.

It really depends on how badly you want to sell the house and how much interest there has been in the house. If this is the only offer you have gotten and it's be on the market for some time, I think you would be wise to follow homechef59's advice. If it's a new listing in a hot market with lots of showings of your house, you might dig in your heels. But I've seen that really backfire on sellers - my hairdresser and his wife's house has still not sold after over 2 years on the market. It is a lovely house, but it has issues that he and his wife were blind to. It was also priced too high and when they have lowered it, it's been lowering by $25-50,000. For a nearly $1 million dollar house, that's just not enough. He now has it rented as his insurance company finally got wind that it was unoccupied and was going to cancel the insurance on it.

Thank to your agent. That's what she's getting paid for - to give you advice in situations just like this one.

Thanks for all the great replies everyone-very helpful! We are going to go with homechef59's suggestion to fix the electrical and rotted wood, and combine this with the advice from a water heater installer to offer a credit for half the price of a new hot water heater. My husband thinks he can repair the wood, so no cost to us to take care of that. I agree that it seems the buyers made a wish list in hopes that Santa will deliver every toy requested. Hopefully they will be okay with our line in the sand; don't really want to lose this potential buyer and have to go through showings all over again-so stressful.

Let us know how it turns out.

It would depend on how long you have been on the market and what are the market conditions in your area. If its a sellers market and you have been on the market a few days, I would have a different opinion than if you have been on the market for a few months with no offers. That being said, if you were my client, (as the listing agent), you have already negotiated an offer you were happy with. I would tell the buyer, you are willing to fix, the electrical issues, (safety issue), also very common for homeowners to have double taps. The rest is items they could have or should have seen before they made their offer. You are also not selling them a brand new house and do not need to provide them with one. Sometimes, people will keep asking for things until you say enough. Say Enough!

Your Inspection Repair list is quite small. Do as Linda and HomeChef say.

Fix electrical issues and the rotted wood issue your husband can fix. That's it. They have received plenty of concessions, it appears.