The due diligence phase that comes along with buying a home is a stressful time. Not only are you digging into researching the title, making sure there aren’t any liens or first positions on the home, but you’ve also got to worry about inspections. But which inspections should you get? You can go for the standard inspection or add extra specialists to look for mold, radon, termites, etc. All of these inspections can rack up your costs, but are they your costs…or the sellers? Just who is responsible for a termite inspection when buying a home anyhow?
The buyer is responsible for all inspection costs, according to most standard purchase contracts. In exchange, the seller must open the home for these inspections to occur. The buyer will also be liable for any damages caused during the inspections, but not for the actual issues discovered.
But we’ll get into all of that in a second. First, let’s talk about when you want to get a termite inspection and what that process will look like. Plus, I’ll dive into what other costs you might be on the hook for once the inspection occurs. Let’s get to it!
While there may be some wiggle room here and there, the process of buying a home is pretty standard across the United States.
During the due diligence phase, the potential buyer will get all of the inspections and research done they feel is necessary. A standard inspection is always recommended and it’s best if you’re there during the inspection. That way, you’ll have the chance to ask the Inspector questions, see what they notice, and have enough information that you’ll feel comfortable knowing if you should proceed or walk away.
In addition to the standard inspection, you can get other extra inspections that dive deeper into what’s going on inside the home. Most buyers will get an additional radon inspection, especially if they live in an area that has high radon levels. Though not necessary, you can also bring in specialists during this time to look for mold, termites, or other potential issues. Believe me, if you can think of it, there’s probably someone you can pay to check it out.
Your general inspector may point out obvious signs of termites, but they’ll rarely do a deeper dive. If you want to be extra careful, you’ll need to hire a termite specialist to give your potential new home a thorough once over. If possible, try to find someone who doesn’t come through either your real estate agent or the buyer. Finding an outside specialist ensures that there aren’t any conflicts of interest and that you get the most unbiased opinion possible.
Are termites a big enough issue that you should get a specialist? It depends. It’s not required, and to be honest, many buyers will opt out if their inspector hasn’t noticed any signs of termites. That said, if you want to have a thorough understanding of what you’re buying, I think it’s well worth the extra money.
Termites are bad news. They’re tiny little mites that love to eat wood and will often chow down on things like support beams, studs, wood flooring, and other tasty treats. Could they cause your home to collapse suddenly? Probably not, as long as they’re not able to reproduce and fester. They will, however, cause damage that can get very expensive, especially in older homes that may need to be retrofitted to meet new building codes. But honestly, even newer homes will cost a pretty penny to get rid of these pests. It’s best you save yourself the headache later by finding out what you’re up against now.
During a termite inspection, your specialist may drill into walls to get a better idea of what you’re dealing with. They’ll be looking to see if there is an infestation and, if so, what size you’re looking at. Their report will also give you a rough estimate about how extensive the damage they’ve caused already is. Unfortunately, if they find enough of a termite infestation that makes you run for the hills, you’re going to be on the hook for any repairs to fix the damage.
But I should clarify something: You will be responsible for the fees associated with repairing the holes your specialist made, not the damage the termites caused.
If your specialist does find termites, you have a few options:
Like most things in life, the process of buying a home is negotiable. For the most part, the buyer will be responsible for any costs associated with inspections or specialist reviews. But there are times when you can negotiate having these costs covered by the seller.
If you’re in a buyer’s market where there is more inventory than buyers, you may have a better shot at getting your costs covered by the seller. You may also be able to negotiate your fees if you’re paying cash, but there are really no set rules about this. Remember that the seller is looking to get out of this cleanly and with as much profit as possible. If you can negotiate a compromise that still makes the seller feel like they’re coming out ahead, there’s a chance you won’t need to pay any inspection fees at all.
No one wants to find termites in their home, as the headache they cause both buyers and sellers can be massive. While you may be out the costs that come along with termite inspection, consider it money well spent to either give you peace of mind or let you out of a potentially expensive purchase.
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