Is it always advisable to get a Termite Inspection knowing that once there's a report the banks want to see it, and make sure the problem is?

Asked by Linwood Fullam, III, Burbank, CA Thu Sep 29, 2011


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Richard Rega…, Both Buyer And Seller, Los Angeles, CA
Thu Sep 29, 2011
In buying property, the small fee for a Termite Inspection could save you thousands in unnecessary repairs. After an offer is accepted I always recommend a 3rd party inspection. Better Safe than Sorry!!
1 vote
Laura Feghali, Agent, Stamford, CT
Thu Sep 29, 2011
Hello Linwood,
I would not suggest that it is "always" advisable to order and perform a termite inspection particularly if there is no evidence of infestation.
However; if termite damage is suspect, then it's in your client's best interests to have an inspection performed. If the bank must see it, then so be it as it may resolve the issue in getting the necessary repairs completed in order to close.
Just another hurdle....

Laura Feghali
Prudential Connecticut Realty
1 vote
Jeri Creson, Agent, Studio City, CA
Tue Nov 22, 2011
I advise my clients to NOT make a termite inspection in a bank owned sale, a short sale, or a sale where the seller will not agree to clear the section one findings, part of the contract. Why? Because if it's on the purchase contract, the bank asks for it. If it's not on the purchase contract - unless it's a VA loan - the bank is not interested. You - however - should be VERY interested, and always, always, always get a termite inspection as part of your due diligence, just like you would a home inspection. If there are significant findings - renegotiate if possible, or maybe reconsider the purchase…if the findings are fairly minor - a few thousand dollars maybe - factor that into the cost of buying this house, and know you'll need to take care of the report sooner than later. One should not let an active infestation go ignored, as it can and will lead to more damage.

The biggest reason not to make a termite inspection a contingency in the contract in this case is this though: If the seller can't or won't clear it, and the bank knows about it, you're stuck. Can you authorize and pay for termite repairs on a property you don't own yet? Yes - if the seller allows it - but what if something goes wrong and you don't close? You're still stuck with the bill, and likely, the seller will use part of your earnest money deposit to pay it. Do the inspection - but keep it off the contract - that's my vote.
0 votes
Lauryn Eadie, Agent, Reston, VA
Thu Sep 29, 2011
I think it is always advisable as a buyers agent for your buyer to get a termite inspection. In my area they are generally under $100 and could save your client costly repairs. If they know about any issues and accept them great, but if they don't know until they are living in the house and find out they have structural issues, you will be the first one they call!
0 votes
Julie Rice T…, , San Mateo, CA
Thu Sep 29, 2011
Speaking as a lender, as long as you do not write a purchase contract addendum asking for seller credits for termite work, the lender does not need to know, nor do they care to see the Termite Inspection report. As for a 3% closing cost credit if you want to find a creative way to get your buyers credit. Of course, if there is visible termite damage, it might be noted in the appraisal, but that is an entirely different issue.

Order all the inspections the buyer is willing to pay for. This is a big investment...your buyers should know exactly what they are getting.

Good Luck!
Julie Thall
0 votes
Daina Burness, Agent, Burbank, CA
Thu Sep 29, 2011
In California, I would always recommend getting a termite inspection. If you don't want the termite report a part of the deal, do not put it as part of the offer. It can be done as part of your inspection period. If you are an agent here, why wouldn't you advise your buyers to do one?
0 votes
Mike Sullivan, Agent, Gainesville, FL
Thu Sep 29, 2011
Having an inspection is always a good idea, and may relieve you from potential liability in the process. The cost vs the benefits is very small
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Thu Sep 29, 2011
One would generally expect a termite inspection to be part of the buyer's inspection process when buying a home.
0 votes
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