Section 1 items typically fall into the closing costs for the seller, meaning sellers pay for these treatments. This includes the cost of remediation, like tenting or spraying to eliminate an active termite infestation. It also means paying for things like repair of dry rot or wood that has been chewed by termites.
Who pays for termite treatment when buying a house?
Another option is for the buyer to pay for it themselves, but if the seller is eager to close, they’ll be willing to pick up the tab. As the seller, you should expect to pay for the termite inspection cost and Section 1 termite treatment.
What are the sections of a termite inspection report?
The report will be divided into two sections — Section 1 and Section 2 — which will determine the next steps needed for both seller and buyer. Under Section 1, the inspector will identify any damage caused by termites and WDOs as well as if they spot an actual infestation.
Should you disclose termite damage when selling a home?
Even if a seller discloses termite damage upfront, it may not be obvious how extensive the damage is or if there’s still an active infestation. A standard home inspection won’t cut it; a home inspector typically looks at major components that are easily accessible.
Is a termite inspection required before closing on a house?
While there is no state mandate that a home inspection is required it is advisable to obtain a termite inspection before the close of escrow due to the amount of damage that termites can cause to the infrastructure of the property.
Are termites a deal breaker when buying a house?
So, when is it a deal-breaker? In most cases, termite damage shouldn't be a deal-breaker, unless you find that: — There is an active and unresolved termite infestation. — There is extensive and unresolved structural damage to the home caused by termites.
What are Section 1 items?
Section 1 items include the presence of termites, dry rot, fungus, etc. Repairs may include replacing damaged wood, treating areas of infestation locally (sort of like spot cleaning), or complete tenting of the property.
Does seller have to pay for termite treatment in California?
In California, as in most states, you as the seller usually cover the cost of the WDO inspection though with many companies, they may offer to do the inspection at no cost with the hope that you'll come back to use their services for future problems.
Does VA require Section 2 termite clearance?
The VA requires all Section 1 work to be completed. The VA allows the underwriter to make a judgement call for Section 2 work. Normally the rule is if the problem is a health or safety issue they need to call for the work to be done.
How do you negotiate termite damage?
If the seller isn't willing to make repairs, then you can either walk away from the sale (with a contingency) or negotiate further. This can include getting quotes from licensed contractors and request that the seller provide the amount as a cash credit that can be applied towards your closing costs.
Who pays for termite treatment on a VA loan?
Basically, on a purchase, someone besides the Veteran must pay for the VA termite inspection. Typically, the seller pays the cost, but it may also be the listing agent, buyer's agent, or even the lender (as long as the Veteran does not pay it.) Most termite inspection invoices range from $50 – $100.
Do lenders require termite inspections California?
It is important to note that in California, the buyer is not responsible for paying for termite inspection and treatment if the property is being financed with a mortgage. The lender will require that the home be inspected for termites before approving the loan.
Does termite damage affect appraisal?
Homeowners are legally required to disclose information about a termite infestation to any potential buyers since this discovery could affect your home's structural integrity and appraisal. Some experts estimate termite damage could reduce the value of your home by approximately 20%.
Who pays for termite treatment California?
As the seller, you should expect to pay for the termite inspection cost and Section 1 termite treatment. If you negotiate an offer that states you are not responsible for paying for Section 1 remediation, make sure the buyer tracks whether or not the lender requires a termite certificate.
Does VA loan require termite clearance?
If you are using a VA (Veteran Affairs) loan to purchase a property or refinance an existing mortgage, the VA may require that the property have a termite inspection for the mortgage process. Any property purchased with a VA (Veterans Affairs) loan must meet the VA's minimum property requirements.
Can the buyer pay for termite repairs on a VA loan?
Although VA buyers cannot pay for the pest inspection in most states, they might be able to pay for any treatment to get rid of them. VA lenders may even let buyers pay for termite damage repairs in some cases.
What will fail a VA appraisal?
What will fail a VA appraisal? If a home fails to meet the VA's Minimum Property Requirements (MPRs), the home will fail the VA appraisal. MPRs ensure the home is move-in ready so veterans won't face a long list of expensive repairs after closing on the home.
Getting a Termite Inspection in Real Estate
Let’s start with your client that’s interested in buying a home. You show your buyer houses and they finally find the one they want. You make an offer and it’s accepted. Escrow is open and everyone is happy so far.
The Termite Inspection & Clearance
The next step would be to hire a termite inspector that will go into the home and inspect for any infestations. If necessary, the inspector will also go under the home to check for subterranean termites. This to make sure the house is free and clear of termites.
Reviewing the Termite Inspection Report
So the termite inspector has viewed the property, made his notes, and created the termite report. The findings will be important to you as the real estate agent, to your buyer, and to the lender for the loan. The inspector lists that there are Section 1 items in the kitchen, the bathroom, and under the house.
Final Thoughts
Buying a home will be one of the most important investments you’ll ever make. You will want to safeguard that investment. Getting the termite inspection is just one safeguard that you should definitely invest in.
What is section 1 termite inspection?
Termite inspection reports describe items as either “Section 1” or “Section 2”. Section 1 items typically fall into the closing costs for the seller, meaning sellers pay for these treatments.
Why do termite inspectors need a license?
Termite inspectors are issued a specific license due to their use of controlled chemicals which allows them the ability to treat the home if termites are present. To clarify the differences in the two inspections, we need to identify what each inspector does and some of the terminology used.
What does a termite inspector look for?
Termite inspectors look at various wood destroying organisms in the home including termites and fungi. Termite inspectors will inspect from the ground to the first floor. If accessible, termite inspectors will enter attics to examine the roof structure. Some home inspectors possess both licenses, but most do not.
How much does a pest inspection cost?
A pest company might vary pricing depending on whether the foundation is raised or slab and on the number of stories or square footage. Prices vary from around $50 to $200.
What does a pest control company do?
Based on the findings of the inspection, the pest control company will recommend treatments or provide options for prevention and protection. They provide treatment options for both subterranean and drywood termites, as well as protection plans that covers the cost of damage and repairs as long as your plan is active.
What is Section 1 in closing costs?
Section 1 items typically fall into the closing costs for the seller, meaning sellers pay for these treatments. This includes the cost of remediation, like tenting or spraying to eliminate an active termite infestation. It also means paying for things like repair of dry rot or wood that has been chewed by termites.
What is a home inspection?
Home Inspection – is a home inspector examines a home’s structure, its systems, and components for defects. This includes aspects of the construction, electrical, plumbing, heating/cooling systems, roof, interior, and exterior components. The home inspector will inspect nearly every aspect of a home and is much more detailed than ...
What is Section 1 in FHA?
Section 1 identifies actual damage or infestation. Section 2 identifies conditions which could lead to future damage or infestation. FHA mortgages require all Section 1 recommendations, and any Section 2 conditions that render an area or structure unsound, to be satisfied before they will insure.
Do you need a termite inspection in California?
Ascertain whether your mortgage company requires a termite inspection. The Federal Housing Administration (FHA) identifies California as a Termite Infestation Probability (TIP) Zone and requires a termite inspection report if there is evidence of termite activity. Other lenders may have different requirements.
What is section 1 in a termite inspection?
Section 1. Termite inspection reports describe items as either "Section 1" or "Section 2". Section 1 items typically fall into the closing costs for the seller, meaning sellers pay for these treatments. This includes the cost of remediation, like tenting or spraying to eliminate an active termite infestation.
How much does a termite inspection cost in California?
In California and in almost all other states, sellers pay termite inspection costs. The cost is typically inexpensive, ranging from $50 to $150. Some termite companies even offer a free inspection in the hopes that they'll earn your business and can handle any necessary (and more expensive) treatment.
Do banks require termite certificates?
Because of this, it's very common for a bank to ask for a termite certificate prior to funding a loan. As with most things, this point is negotiable so buyers should be prepared to ask for a contingency stating the seller pays for a termite inspection, treatment, or both - even on an as-is sale.
Do you have to pay for termite inspection?
As the seller, you should expect to pay for the termite inspection cost and Section 1 termite treatment. If you negotiate an offer that states you are not responsible for paying for Section 1 remediation, make sure the buyer tracks whether or not the bank requires a termite certificate.
How much does it cost to fix a termite infestation?
Significant termite infestation treatment can set you back $1,200 to $2,500 or more, depending on the size of the house, according to HomeAdvisor. Structural repair costs will vary widely depending on location and the contractor’s experience, but expect to shell out a few thousand dollars or more if extensive repairs are needed.
How much damage do termites cause?
According to the National Pest Management Association, termites cause more than $5 billion in property damage each year. What’s more: these costs are generally not covered by homeowners insurance. Before you’re completely scared off, know this: A home with termite damage doesn’t have to be a pariah.
How to protect yourelf from the start?
One way to protect yourelf from the start is to include a home inspection contingency, which gives you a way out of the purchase contract without penalty if the inspection report uncovers major problems , Humes says. Kistner agrees.
What does a home inspector look for in a house?
A standard home inspection won’t cut it; a home inspector typically looks at major components that are easily accessible. A pest inspector, on the other hand, will look specifically for evidence of termites and other pests.
What to do if seller isn't willing to make repairs?
If the seller isn’t willing to make repairs, then you can either walk away from the sale (with a contingency) or negotiate further. This can include getting quotes from licensed contractors and request that the seller provide the amount as a cash credit that can be applied towards your closing costs.
Do termites go away?
Glen Ramsey, a board-certified entomologist and technical services manager for Orkin says that termites don’t necessarily go away as easily as other types of pests. And that presents a challenge if you need to close sooner rather than later.
Can you write off termite damage?
Just because a house has termite damage, doesn’t mean you should write it off. If you live in a region that has a high probability of termite infestation, such as California, Florida and Louisania, you might come across termite damage. If the damage is caught early, it can often be fixed with minimal issues in some cases.
Why is Section II a WDO?
This becomes a Section II item because it is not an active WDO issue, but are conditions conducive to a possible WDO issue. It is a common practice of the lending industry to protect their investments and loans on properties to not repeat reckless and irresponsible loaning practices of the past.
Do you need a WDO inspection?
There is no legal requirement to even have a WDO inspection done much less a regulation to require any work be done before the close of escrow. Each lender, each underwriter, and each loan is unique. It is possible that one lender will have more stringent requirements than another lender on the exact same property.
Getting A Termite Inspection in Real Estate
- Let’s start with your client that’s interested in buying a home. You show your buyer houses and they finally find the one they want. You make an offer and it’s accepted. Escrow is openand everyone is happy so far. As with any property, we want to make sure there are no underlying issues. Your buyer has the right to a home inspectionin a real estate transaction. Along with that…
The Termite Inspection & Clearance
- The next step would be to hire a termite inspector that will go into the home and inspect for any infestations. If necessary, the inspector will also go under the home to check for subterranean termites. This to make sure the house is free and clear of termites. If there is no evidence of termites, this is called having clearance and the lender will need to be provided with this informa…
Reviewing The Termite Inspection Report
- So the termite inspector has viewed the property, made his notes, and created the termite report. The findings will be important to you as the real estate agent, to your buyer, and to the lender for the loan. The inspector lists that there are Section 1 items in the kitchen, the bathroom, and under the house. Further along in the report, he lists t...
Final Thoughts
- Buying a home will be one of the most important investments you’ll ever make. You will want to safeguard that investment. Getting the termite inspection is just one safeguard that you should definitely invest in. Remember, findings of Termite Section 1 may mean taking a more serious look at the property. Addressing the infestation should prevent more extensive damage. If the re…