Termites are often called the “silent destroyers” of real estate. They work quietly, often undetected, eating away at a property’s structure, sometimes for years before their presence is discovered. For both homebuyers and sellers, termite activity is more than just a pest issue—it’s a serious real estate concern that can influence property value, deal negotiations, and long-term investment outcomes.

Whether you're buying your dream home or preparing to sell, understanding the impact termites have on real estate—and what to do about them—is critical to protecting your interests.

Why Termites Are a Big Deal in Real Estate

Termites cause billions of dollars in damage to homes every year worldwide. The damage is often not covered by homeowners insurance because it's considered preventable with proper maintenance. In real estate, termite issues can:

• Reduce property value

• Delay or derail closing

• Result in expensive repairs

• Lead to legal disputes if damage was not disclosed

These potential consequences make it essential for buyers and sellers to address termite issues early and transparently.

For Homebuyers: What You Should Know

1. Always Get a Termite Inspection

Before purchasing a home, it’s critical to schedule a Wood-Destroying Organism (WDO) inspection, commonly known as a termite inspection. This inspection is different from a general home inspection and is conducted by licensed pest control professionals. They will look for:

• Live termite colonies

• Signs of past infestation

• Structural damage (e.g., hollow wood, buckling floors)

• Moisture problems that could attract termites

• Other wood-destroying insects like carpenter ants or powderpost beetles

2. Read the Report Carefully

The WDO report may use terms like:

• Active infestation – live termites or current damage

• Previous treatment – past termite control measures

• Conducive conditions – moisture, wood-to-ground contact, etc.

If termites are found, don't panic. Many homes, especially in warmer regions, have had termite issues at some point. What matters is how extensive the damage is and whether it was treated properly.

3. Consider Negotiating Repairs or Price Adjustments

If termites or damage are found:

• Request treatment and repairs: Sellers may agree to fix structural damage or hire a pest control company.

• Negotiate a price reduction: Buyers can ask for a lower price to offset the cost of repairs and treatment.

• Walk away: If damage is too extensive or not disclosed up front, you have the right to withdraw your offer during the inspection period.

4. Get a Transferable Warranty

If the home was recently treated, ask if there’s a transferable termite warranty. This ensures the home remains under protection, typically for a year or more, and can cover retreatment if termites return.

For Sellers: What You Should Know

1. Disclose Termite History Honestly

In many regions, sellers are legally obligated to disclose known termite infestations and related damage. Failing to disclose can result in lawsuits, especially if the buyer discovers hidden damage after closing.

Your disclosure should include:

• Whether the home has ever had termites

• When it was treated and by whom

• Whether structural repairs were made

• Whether there’s an active service or warranty

Transparency builds trust and prevents deals from falling apart later.

2. Get a Pre-Listing Inspection

A pre-listing WDO inspection allows sellers to discover and address termite issues before putting the home on the market. This:

• Gives you time to make repairs

• Prevents surprises during buyer inspections

• Strengthens your position in negotiations

• Reassures potential buyers

Showing that your home is termite-free or recently treated can be a strong selling point.

3. Address Damage and Conducive Conditions

If damage is found, consider having a licensed contractor repair affected areas. Even minor cosmetic repairs—like patching wood or repainting trim—can help restore confidence.

Also address any conditions that attract termites, such as:

• Leaky pipes or poor drainage

• Wood touching soil

• Firewood stacked near the house

• Clogged gutters or high humidity

Taking these steps improves your property’s appeal and reduces future risk.

Shared Responsibilities in a Real Estate Transaction

Who Pays for the Termite Inspection?

This varies by region and agreement. In some states, the buyer typically pays, while in others, the seller covers the cost to make the property more marketable. It can also be negotiated as part of the purchase offer.

Who Pays for Treatment or Repairs?

• If the infestation is active, buyers often ask sellers to pay for treatment and repairs.

• If the issue is minor or previously resolved, buyers may choose to handle it themselves to move the deal along.

• In hot markets, sellers may decline repairs and still find buyers willing to accept the risk.

Either way, everything is negotiable in real estate—and termite findings are a common point of negotiation.

The Role of Lenders and Appraisers

Termite issues can also impact financing and appraisal:

• Lenders may require a clear WDO report before approving a mortgage, especially for VA or FHA loans.

• Appraisers may note termite damage that affects the home’s value or safety.

If a home fails a termite inspection or shows significant damage, the lender could delay or deny financing until repairs are completed.

Termite Prevention Tips for Current and Future Owners

Whether you’re buying or selling, these termite prevention tips can protect your investment:

• Keep soil at least 6 inches below wooden siding

• Fix leaks and drainage issues

• Store firewood away from the home

• Schedule regular professional inspections

• Treat the soil or structure proactively in high-risk areas

• Use termite-resistant materials in renovations

Prevention is always less expensive than repairs. A small investment now can save thousands in the future.

Conclusion: Knowledge is Protection

In the world of real estate, termite awareness is essential. For buyers, a thorough inspection and clear understanding of the property’s history can protect you from surprise costs and structural problems. For sellers, early detection, full disclosure, and proactive treatment can help you sell faster and with greater confidence.

While termites are a common and serious issue, they don’t have to kill a real estate deal—as long as everyone involved is informed, transparent, and prepared to act. By treating termite issues like any other important maintenance concern, you’ll protect both your property and your peace of mind.