Is a Termite Inspection Important for Real Estate Transactions?

Market Transactions

• Properties that are for sale on the open market are usually handled by realtors and agencies. The lenders they work with generally ask for a termite inspection before any funds are released from escrow.

For Sale By Owner

• Real estate transactions that do not include a realtor often entail the need for a termite inspection. An escrow account will likely be an aspect of the process, and lenders usually demand some form of home inspection, including a termite inspection, to ensure the condition of the property for sale.

Buyer Assurance

• The prospective buyer of a property will often request a termite inspection as part of the real estate transaction. This is to assure themselves of the actual condition of the property before committing to the purchase, and assures that the seller is aware of any findings that indicate termite infestation.

Property Value

• The value of a property is obviously important in any real estate transaction. A termite inspection that reveals findings of infestations will have an effect on the value of the property, and will be a factor during the negotiations.

Other Reasons for a Termite Inspection

• Property tax issues are often a reason that a termite inspection is requested. A property that shows no findings of infestations will be valued higher than one that does, thus affecting the level of taxation. Additionally, a property owner just may want to know if any infestations are present as part of regular maintenance.