Termite Damage and Real Estate
How Termites Effect Your Home’s Price
There’s no doubt that termite control and termite damage influence real estate. Depending on your position in the transaction and how much you have to gain or lose, termite damage can be a good thing or it can make a usually easy transaction difficult. No matter your role, though, it’s important that you know how damage from termites and real estate interact.
Selling a Home with Termite Problems
If you’re looking to sell a home with known damage by termites, your asking price will need to be lower than it might otherwise be. Sometimes, though, you can still sell the structure for enough money that it’s not worthwhile to repair the damage first. On the other hand, in some locations and markets, you’ll want to complete any repairs before you even put the house on the market.
If you know about damage but can’t afford to fix it by hiring a company or doing it yourself with termite control supplies, sometimes selling your home for less is the better option. You’ll still come out ahead, even if less so than you might have liked, and you won’t have to go into debt to make repairs.
If your home is already in escrow and an inspector finds termites or their damage, you’ll probably have a couple of options, based both on what you want to do and what your buyer requests. If the buyer was planning to do some extensive remodels anyway, you may be able to lower the price of the home by the estimated cost of repairs and continue escrow. You may also be able to complete the repairs yourself and continue escrow. Finally, your buyer may choose to pull out of escrow and you’ll need to find someone else to purchase the house.
Buying a Home with Termite Problems
If you’re looking to buy a home with damage from termites, there are several things to consider. If the seller knows ahead of time that the home needs termite control, you may be able to get it for a lower price than what you’d anticipated. While you’ll have to shell out more money later to fix the problems, this can be a good way to get a roof over your head for a little less.
If you’re in escrow on a home and your inspector finds signs of damage or infestation, you’ll have several options. You can ask the seller for a lower price, proportionate to the estimated costs of repair. This can be particularly useful if you really like the home and had planned to do some renovations anyway. Doing the repairs yourself will allow you to influence any stylistic or decor issues that are influenced by the work needing to be done.
On the other hand, you can require the seller to complete repairs before you purchase the home, or you can pull out of the deal entirely. If you’re simply unable or unwilling to make the repairs yourself, this is probably the best choice. While it’s disappointing to lose the home, that’s better than saddling yourself with stress you don’t want.
No matter which side of the real estate transaction you’re on, it’s important that you consider carefully how termite control and termite damage should influence the transaction. That way, you can make an informed decision about whether you want to be involved in the transaction and how much you’re willing to risk to do so.