Termite Damage and Real Estate Transactions
Termites are one of the most problematic pests for homeowners. Termite infestations can destroy a home's foundation and its structural soundness. It can also cost thousands of dollars to repair. In the U.S. alone, homeowners spend over a billion dollars annually to repair termite damage.
Purchasing a home is a major decision. You want to make sure you are getting the most for your money, and that your future home will last for many years. To ensure your home purchase goes smoothly, insist on a termite inspection before you sign any contract or make any agreements. Law does usually not require an inspection, so it is up to you as the buyer to make sure this is carried out. Often times, sellers will help with the cost of the inspection.
Termite inspectors will check the home for any active termite evidence and any signs of past damage. Termite inspectors will then issue a letter, known as a termite bond, that states all termite activity and any evidence of infestations.
This termite bond is a form of insurance for you as the homebuyer. Most termite damage is not covered by homeowners insurance. A termite bond helps to guarantee that at the time of the sale, no evidence of termites was present.
Termite damage can wreak havoc on home prices and resale. Most realtors steer clients away from homes with signs of damage. To insure a higher resale value of your home, your best bet is to schedule a termite inspection before you put your home on the market. If termites are found, make sure all repair work is done to any damaged structures and that all termites are destroyed. Keep a record of the repairs done and all the receipts to present to the buyer.