In most cases, termite prevention is paid for by the buyers, and termite treatment is paid for by the seller in the closing costs. However, if the seller listed the house “as is,” the buyers are responsible for all termite damage and future prevention costs. Of course, there are always contingencies that can make this decision more complicated.
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.
Can you sell a house with termite damage?
This article will answer any questions that you have about selling a house with termite damage. This may be a surprise for you, but as a real estate investor, during my 20-year career, I’ve seen homes with termites sold many times, including properties sold as is, during infestation.
Should the buyer pay for the pest report?
The main problem a seller faces if a buyer pays for the pest report is the seller has no control over the quality of that pest inspection. In California, it is filed with the Pest Control Board and a matter of public record. Dean Adams has spent the majority of his life in real estate.
How much does a termite bond cost?
The prices for termite bonds depend on the types of pests included in it, the location and size of your property and other factors. The prices start from $200 and go as high as a few thousand dollars.
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.
Is termite damage a deal breaker?
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.
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.
Is termite treatment a waste of money?
The Expense of Termite Treatment Termites can cause many thousands of dollars in structural damage to your home, all of which will need to be accounted for. Compared to the cost of treatment and repairs, an annual termite inspection is quick, easy, and affordable.
How do you know if termites cause structural damage?
Swollen Floors And Ceilings Like buckling wood, swelling floors and ceilings are an indicator of water damage or a termite colony. Termites burrowing into the wood causes it to swell and bulge. This swelling is more than an eyesore. It's a sign of dangerous structural damage.
Do termites come back after treatment?
Will termites come back after treatment? Termites may return after treatments. Luckily, companies like Orkin and Terminix promise to re-treat at no extra cost if you have a termite plan with them.
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 is the seller responsible for in a VA loan?
Sellers Must Pay Certain Fees The loan program prohibits buyers from paying certain fees at closing. Typically, this will include the loan underwriting fee and the closing fee. Those fees don't go away. Instead, they become the seller's responsibility.
Who pays for termite inspection on a VA loan in Texas?
VA Loan Termite Inspection Costs VA borrowers aren't allowed to pay for the inspection on a home purchase in all but nine states. Both home sellers and real estate agents have historically expressed concern over this limitation, which almost always results in the seller covering this cost.
Is it worth it to tent for termites?
Tenting is extremely effective in getting rid of a stubborn termite infestation or one that is difficult to access. Still, it is costly, involves some risk, and requires a lot of planning and preparation on the part of the homeowner.
Is termite barrier worth it?
So, the cost of a chemical termite barrier is worth it to protect your investment. Depending on the size of your perimeter, a full treatment can cost somewhere between $1,500 to $5,000. There are cheaper alternatives, such as those that use a repellent termiticide. But repelling termites doesn't get rid of the problem.
Is it worth getting a termite bond?
A termite bond delivers peace of mind. If you have a termite infestation, you may worry that termites will return, even after successful control services. But a bond guarantees that the pest control company will keep an eye on your home and make sure that a new infestation doesn't creep up on you.
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.
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.
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.
What does termite inspection cover?
Additionally, the termite inspection covers both the seller and buyer from legal recourse down the road. For instance, with the inspection, the buyer cannot claim the seller didn't disclose pre-existing issues and demand the seller pay for structural repairs.
Why do you need a termite inspection?
Many times both seller and buyer can use the termite inspection in order to help close the sale on the home. For instance, if the buyer is eager to close on the home, they could offer to pay for various repairs caused by termite damage including spray treatments and wood replacement.
What is section 2 of a termite report?
Section 2. Section 2 of your termite report will focus on potential future problems with termite or WDO damage. For example, the inspector may note that an area could be a hotspot for pests and prone to creating an environment where termites would flourish and cause damage.
Why do sellers pay for WDO?
On the other hand, if the seller is motivated to close quickly, they may offer to go above and beyond, paying for some of the preventable WDO measures in order to make sure the buyer is able to secure a loan and that the buyer will be less likely to back out of the deal.
Why do termites attack wood?
Rather, they are looking for damage to the wood caused by pests and identifying spots that may be conducive to creating a ripe environment that might attract termites, such as earth-to-wood contact where dirt is actually touching the wood sections of the foundation.
How much does an inspection cost?
If the inspector does charge, typically the inspection cost will range from $50 to $150 making it an inexpensive upfront cost that could end up saving you thousands in the future — the negligible fee and potential benefits make getting an inspection an easy choice for most sellers.
What are the problems with termites?
Unfortunately, termites and other WDOs, like wood-boring beetles, fungus, and dry rot, can damage the structural integrity of your home and cause major problems down the line.
Who pays for termite treatment buyer or seller?
Also, if you plan on taking out a mortgage, there is also a high chance that the lender would require you to conduct a termite inspection before the sale is even conducted, and in some cases, this will be required before lenders even consider selling a home.
Who pays for termite inspection in California?
This is typically seen as a negotiable part of the contract. When a buyer places an offer on a home they are considering purchasing they can ask that the seller provide termite inspection and pay for repairs found in that inspection. 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. If you receive a loan from a lender, some lenders require that a termite inspection be completed and submitted to the lender. It is advisable to ask your loan officer if they require a termite inspection as part of a condition for funding the loan.
How much does an average termite inspection cost?
When buying a home, the typical WDO Inspection costs about $75 for a slab foundation to $150 for a crawl space or basement foundation . This inspection is usually a requirement by the mortgage lender.
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 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.
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 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.
Who pays for termite damage?
What does your contract say about who pays for termite damage? Every agreement for purchase & sale I've submitted has specified that the seller pays for treatment and for repair of damage or credits the buyer for the cost to repair. If you have a choice, personally I'd prefer the credit and hire my own contractor to ensure the job was done to my satisfaction. Of course, if you and the seller agree to give you a credit, you're on the hook if repairs end up costing more than anticipated.
Do carpenter ants move in after termites?
Fast forward 20 years, and we discovered carpenter ants! Apparently, carpenter ants move in after termites have done all the work. Anyway, we had that problem taken care of by a company located in Littleton, I believe. And there's a company in Brockton who handles sill repair.
How to sell a house with termite history?
The first, and easiest way is to sell it in its current condition. Let the buyer deal with the issue. The second way to sell your home is to repair any damage and remediate the problem for the future. Then you can put your home on the market and attempt to sell it to the general public.
What happens if you have termites in your home?
The existence or history of termite infestation will make your home less attractive to most buyers. If there is evidence of a prior termite presence, buyers will expect to see that steps were taken to prevent future problems. If those steps weren’t taken, the overall maintenance of your home will come into question.
Do You Have to Disclose Termites when Selling a House?
Some states specifically require that you disclose whether or not your home has termites or damage caused by termites. Others ask you to confirm or deny whether the property has a problem with “pests”.
What happens if you don't fix termite damage?
If you don’t address termite and moisture damage right away, the problem will get worse. You’ll need even more money to fix the damage. If you don’t have the time or money to prepare your home to sell, then selling to a real estate investor is a good option for you.
Why do you need a termite bond?
A termite bond ensures prospective buyers that future problems will be dealt with by a reputable pest control expert and raises your chance to find a buyer sooner. The prices for termite bonds depend on the types of pests included in it, the location and size of your property and other factors.
How to tell if you have termites in your house?
Stopping the Infestation. If you suspect that termites have infested your home, you should take steps right away to deal with the problem. Some signs of termites include; drywall that has discoloration or pinholes. mud tubes on the outside of your home. warping or squeaking floors. stuck windows.
What do realtors do when selling a house?
A realtor will help you to oversee the termite treatment, repairing the damage and doing other necessary work to put your house in the market condition. If you sell the house yourself, you will have to depend on basic social media platforms like Facebook, word of mouth, and a sign in your yard.