Information--Home and Termite Inspection

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.

1. Home Inspection

A home inspection is a broad, non-invasive examination of the property's major systems and visible components.

What the Inspector Checks

• 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)

Typical Process

1. Buyer hires a licensed home inspector.

2. Inspection usually takes 2–4 hours, depending on the property's size and condition.

3. Buyer is often encouraged to attend.

4. Inspector prepares a written report, usually within 24–48 hours.

5. 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

Common Findings

• Roof wear

• Plumbing leaks

• Electrical safety issues

• HVAC maintenance needs

• Drainage problems

• Minor structural concerns

What It Does Not Usually Include

Specialized inspections may be needed for:

• Mold

• Radon

• Sewer lines

• Chimneys

• Pools

• Asbestos

• Pest infestations

2. Termite (Wood-Destroying Organism) Inspection

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.)

Typical Process

1. A licensed pest-control company performs the inspection.

2. Inspector examines:

   • Crawl spaces

   • Attic

   • Foundation

   • Exterior wood

   • Garage

   • Fences and decks (sometimes)

3. Inspection generally takes 30–90 minutes.

4. A written report is issued describing:

   • Active infestation (if any)

   • Damage found

   • Recommended treatment or repairs

Common Outcomes

• Clear report: No evidence of termites or damage.

• Treatment needed: Active infestation found.

• Repairs recommended: Structural wood damage or dry rot detected.

How They Fit Into a Real Estate Transaction

Typical Timeline

1. Offer accepted.

2. Inspection contingency period begins (often 7–17 days, depending on the market and contract).

3. Buyer schedules:

   • Home inspection

   • Termite inspection

   • Any specialized inspections

4. Reports are reviewed.

5. Buyer and seller negotiate repairs or credits.

6. Contingencies are removed.

7. Closing proceeds.

Who Pays?

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.

Red Flags That Often Trigger Further Negotiation

• 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

Example

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.