Termites are responsible for billions of dollars in damage every year across the nation.  Mostly feeding on wood based products, termites can damage living trees and shrubs.  I’ve seen this damage first hand as I have an extensive background in extermination.  I worked for a family based pest control company for 10 years.  Your property can become infested at any time if it isn’t or hasn’t been treated with approved chemicals.  But termites are of particular importance when it comes to purchasing or selling a home, because a termite report is often a condition of the sale when a bank is lending the purchase funds.  Never mind termites eating away at your home, your future, and investment - the very site of hundreds or thousands of termites feasting within the home is not a pretty picture. 

A number of buyers are purchasing investment properties directly from sellers in the as-is condition and failing to obtain a termite inspection.  Only when the investor begins to rehab the property is this damage discovered and the fact that they need more cash to complete the treatment and repairs.  A termite treatment can cost anywhere from $0.50 – $0.75/sqft.  A termite inspection is very inexpensive, usually between $75 - $125, a small price to pay for peace of mind.  Termites can do extensive damage if left untreated in excess of 1 year. 

When purchasing investment properties, it is a good idea to know what to look for in a home for signs of termites.  Termites travel from the ground to the sub-flooring of a property through dirt tubes.  These tubes protect the termites from danger and predators.  If the home is a crawl space, you want to inspect for termite tubes on the foundation wall and pillars in the crawl space.  You also want to search for damaged beams and sub-flooring.  There may not be any evidence of termites or termite damage at all, because termites can travel up in between the holes in the foundation blocks.  If the home has a slab foundation, you want to walk around the outside and look for these termite tubes as well as the inside.  Inside damage may consist of damaged molding or sheet rock. 

Getting a professional termite inspection on an investment property is the best alternative for any buyer.  If evidence of termites is there, you can renegotiate the purchase price with the seller, thus saving you thousands of dollars, because there is an unknown factor (How much damage has the termites done).  Also a termite inspection gives the buyer more insight on issues that can’t be easily seen, such as anknown water leak, foundation problems, or other wood destroying pest such as powder post beetles or wood bores.  It is also a good idea to get your investment properties treated for termites, even if the property doesn’t have any signs of activity.  Some professional exterminators give booster treatments to homes for termite prevention.  A normal treatment will protect your home for a minimum of 5 years and most companies provide a warranty and follow up yearly inspections.  Termite inspections allow investors to maximize their investment, which is why we are in the business.   Happy Investing.

Reference:  A&S Pest Control, Inc.