If you're buying in Southern Calif, unfortunately our beautiful weather is the perfect environment for termites.
Termite damage isn't enough reason to walk away from a home purchase, unless the damage is huge, the cost exhorbitant, or the damage too far gone to repair( i.e. undermining piers of a foundation). So, the answer to your question is : it depends. If the estimate for repair is reasonable, $500 - $2000, it is a very common report., and can be negotiated by asking the seller to pay for a clearance, or negotiating a credit to take care of the work...... IIf the cost is huge (I have a mansion listing with an estimate of $32,000) then you might walk. If a reputable company will give you a clearance, and insure the work for at least a year, you should be ok. But the termites will come back. That's why you want to exercise preventative maintenance on any home you buy....kinda like having a child :-) They (homes) require attention.......Once you have a clearance, just keep an eye on things at least annually.
Prudential California Glendale Calif