Smart Home Sellers Opt for Pest Inspection
Who pays to repair defects? It depends on the market
By Dian Hymer | Published: 4/30/2007
Termites can turn a home's solid wood frame into a soft crumbly hollow shell that could eventually collapse.
No one wants to buy a house that's riddled with termites. So, a termite inspection -- technically an inspection for damage by any kind of wood-destroying organism -- is usually done during a home sale.
Sometimes referred to as a termite inspection, an inspection for wood pests covers such organisms as dry rot, fungus, wood-boring beetles, carpenter ants -- to name a few -- in addition to termites. Who pays to repair the damage varies, often depending on market conditions.
For example, during soft markets that favor buyers, sellers are usually more willing to pay for pest repairs than they are when houses sell quickly. However, in a hot seller's market, buyers are more likely to overlook these defects and buy properties in "as is" condition, without asking the sellers to pay for repairs.
Even if a seller doesn't have to do pest repairs to sell, there are times when it makes sense to do so. Buyers look favorably on a house that has little, if any, pest damage. It's one less thing for buyers to worry about. A pest report with little or no damage is a big draw.
Although it's not customary everywhere, it's wise for sellers to have their homes inspected for wood pests before selling. Actually, it's a good idea for homeowners to have their homes inspected every few years, even if they're not planning to sell, so that problems can be dealt with before they become major.
In some areas, sellers don't pay to have their homes inspected for wood pests until they have accepted an offer from a buyer. This approach can be problematic. If the pest inspection reveals more damage than expected, the contract could end up in renegotiation. If sellers can't come to terms with the buyers, the listing will be back on the market.
