About Pest/Termite Inspections

 

What is a Pest/Termite Inspection?

A termite inspection is performed by a state-licensed professional who is hired to look for signs of termite infestation or damage to a house or other structure before the property is sold.

A standard termite inspection is usually ordered by an escrow or closing agent after a purchase agreement has been signed, so that problems can be remedied during the closing process.

In many states, a termite clearance is a critical part of the closing process. Lenders will not approve a loan without it.

What does a termite inspector do?

An experienced inspector will make a thorough investigation of the structure (usually starting with the basement or foundation and exterior of the house to make sure that no structural wood is in contact with the soil).

Pest inspectors, who are state licensed and regulated, will look not just for evidence of termites (droppings around windowsills, wood damage, cellulose shavings on the soil near the foundation, termite tubes and tunneling in wooden beams), but also for signs of mold, fungus, wood decay, dry rot, water puddling and leak damage.

The inspector files a written report describing his findings with the escrow or closing agent usually within five to seven business days. (A copy is also filed with the state inspection board and is available to the public for two years.) The report recommends remedial work, preventive measures required to reduce future incidents and it usually includes cost estimates. See a sample report.

A termite inspection is usually ordered when an escrow account has been opened at the beginning of the closing process. Work to correct problems does not start until the seller signs an authorization form. The inspection service will ask for the escrow file number and include it in his report.

How much does it cost?

A standard termite inspection can cost between $75 and $500 depending on the size and age of the property. The price of remedying any problems depends on the scope of the damage and type of treatment required.

Who pays?

Typically, the buyer pays for the initial pest inspection as part of the closing costs. The seller pays for any repair work, unless both parties negotiate a different arrangement before opening escrow and note it in the purchase agreement.

Smart Tips

  • Make sure that the inspector is bonded, certified and licensed to work in your state. Always check references and ask for details of what to expect during the initial inspection.
  • If problems are discovered, it's helpful to walk through the property with the inspector, making sure all your questions are answered about various treatment options and costs.
  • Depending on the location and type of structure, it's a good idea for buyers to include a termite contingency in the purchase contract, which allows the buyer to withdraw from the transaction in the event of extreme damage.
  • If you are selling, you can save time by having your property inspected for pest damage and making sure it's mitigated so the report is ready before the property is placed on the market.
  • If you have your home inspected regularly, be sure to keep all the paperwork provided by inspectors in the event that a potential buyer wants to see a record of termite maintenance.
  • Keep in mind that home insurance policies do not cover termite damage. Ask potential inspectors about their own warranty plans and whether they are covered for errors and omissions.
  • In addition to a termite inspection, you may want to order a complete home inspection by a licensed building contractor to make a thorough inspection of the structure's major systems (heating, plumbing, electrical) from foundation to rooftop. This could add another $100 to $300 to your closing costs.

Learn about other closing services.

 

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