Importance of Termite Inspections for Home Buyers
July 27, 2021
If you have been following the news at all over the last year, you know that the housing market is on fire. Homes are selling well above asking price within days of being put on the market. Unfortunately, many home buyers, hoping to make their offers stand out, are waiving home inspections and termite inspections.
This is a huge mistake.
Termites are insidious creatures that could turn your dream home into a nightmare!
Apart from the obvious reason that no one wants a home infested with termites, let’s take a look at some financial reasons why buying a home without a proper termite inspection may be a costly mistake.
Some Lending Institutions Require Home Inspections
In some states, lending institutions will require a home inspection, (including pests like termites,) before a home loan is approved. Structural damage is possible as termites eat away at foundations, joists, and support beams. Lending institutions may require the inspection to ensure the value of the home is where it should be for the mortgage.
According to the real estate experts at The Real Estate Decision, “When you are buying a home, you list the inspections you want to be done. Inspection contingencies are extremely regular in those exchanges, and all things considered, the mortgage lender will need to ensure that the examinations were finished and acknowledged by the purchaser/borrower.”
For a list of states that require termite inspections for VA loans and other more conventional loans, check out the link here.
Skipping an Inspection Could Be a Costly Mistake
According to the Environmental Protection Agency termites can cause between $1-$5 billion dollars worth of damage annually to both residential and commercial structures. Yes, that was a billion with a “B.”
Repairing the damage that could be hidden from view during an open house or tour, could be very costly. Once you have purchased the home, it is your responsibility to fix the problem, not the previous owners.
An experienced termite and pest inspector would have been able to identify red flags that could have indicated there was an active termite infestation or one in the not too distant past. This information is vital to placing an appropriate bid for a home. Knowledge is power, and in this case, it can save you thousands of dollars and heartache going forward.
Know the History of the Home
Notice in the section above that we mentioned a pest professional could determine if a termite colony was currently active or was in the past. This is important information for new home buyers to have.
If you are aware that there were termite issues in the past you can be sure to have regular inspections going forward as well as be on the lookout for common signs of termites such as mud tubes, frass, hollowed wood, and wings from swarmers.
Consider Pest-End to examine your potential termite issue and resolve it so you can enjoy your dream home.