In a real estate transaction, home inspections and termite (wood-destroying organism) inspections are separate evaluations that help buyers understand a property's condition before closing.
A home inspection is a broad, non-invasive examination of the property's major systems and visible components.
Roof and attic
Foundation and structural components
Exterior walls and siding
Plumbing systems
Electrical systems
HVAC (heating and air conditioning)
Windows and doors
Insulation and ventilation
Appliances (depending on the inspection agreement)
Buyer hires a licensed home inspector.
Inspection usually takes 2–4 hours, depending on the property's size and condition.
Buyer is often encouraged to attend.
Inspector prepares a written report, usually within 24–48 hours.
Buyer reviews findings and may:
Accept the property as-is
Request repairs
Request credits or price reductions
Walk away if the contract includes an inspection contingency
Roof wear
Plumbing leaks
Electrical safety issues
HVAC maintenance needs
Drainage problems
Minor structural concerns
Specialized inspections may be needed for:
Mold
Radon
Sewer lines
Chimneys
Pools
Asbestos
Pest infestations
A termite inspection specifically looks for:
Active termite infestations
Evidence of previous termite activity
Wood rot
Fungus damage
Other wood-destroying insects (carpenter ants, beetles, etc.)
A licensed pest-control company performs the inspection.
Inspector examines:
Crawl spaces
Attic
Foundation
Exterior wood
Garage
Fences and decks (sometimes)
Inspection generally takes 30–90 minutes.
A written report is issued describing:
Active infestation (if any)
Damage found
Recommended treatment or repairs
Clear report: No evidence of termites or damage.
Treatment needed: Active infestation found.
Repairs recommended: Structural wood damage or dry rot detected.
Offer accepted.
Inspection contingency period begins (often 7–17 days, depending on the market and contract).
Buyer schedules:
Home inspection
Termite inspection
Any specialized inspections
Reports are reviewed.
Buyer and seller negotiate repairs or credits.
Contingencies are removed.
Closing proceeds.
This varies by state, local custom, and negotiation.
Home inspection: Usually paid by the buyer.
Termite inspection:
Often paid by the seller in some regions.
Often paid by the buyer in others.
Treatment and repair costs are negotiable.
For example, practices can differ significantly between states such as California, Texas, and Florida.
Active termites
Significant wood rot
Foundation movement
Major roof issues
Electrical hazards
Sewer line problems
Water intrusion or drainage issues
HVAC systems near end of life
Suppose you're buying a $700,000 home:
Home inspection finds an aging water heater and roof repairs estimated at $3,000.
Termite inspection finds active subterranean termites and $2,500 of treatment work.
Buyer may ask the seller to:
Complete repairs before closing, or
Provide a credit (for example, $5,500) at closing.
The exact outcome depends on market conditions and the purchase agreement.