Should I Buy a House With Termites?

Termites are small insects, but the damage they can cause to a home can be significant. If you’re buying a house and a termite inspection reveals an active infestation or evidence of past termite damage, it’s natural to wonder whether you should walk away.

The short answer is: not necessarily.

Buying a house with termites doesn’t automatically mean you’re making a bad investment. What matters is understanding the extent of the infestation, whether the termites are still active, how much damage they have caused, what repairs and treatment will cost, and whether the purchase price reflects those risks.

In some cases, termite problems can give buyers an opportunity to negotiate a lower price, request repairs or ask the seller to pay for treatment. In other cases, extensive structural damage or unclear treatment history could make the property more trouble than it’s worth.

We asked real estate agents how they would advise buyers considering a home with termites. Their advice was consistent: don’t panic, but don’t ignore the problem either.

“Termites don’t automatically make a house a bad buy, but they absolutely change the conversation. The key is knowing the extent of the damage, whether the activity is current or past, what repairs are needed, and whether the price, treatment, and seller concessions properly reflect the risk.”

— Team Renick, Mangrove Realty Associates Inc., Sarasota, Florida

What Do Termites Do to Your Home?

Termites are colony-based insects that eat wood. Where you find one termite, you are likely to discover countless others. While termites aren’t harmful to humans, they don’t bite or sting, they can eat away at your home to the point where it is structurally unsound. Not only are termite-damaged homes unsafe to live in, but they also lose value, hurting sellers financially. 

While terminates are stressful for sellers, they provide potential opportunities to buyers. Purchasing a terminate-damaged home, or even a house with active termites, comes with various pros and cons.

Keep reading if you are currently asking, “Should I buy a house with termites?” to determine whether this risk is a good option for you.  

Does Termite Damage Decrease Property Value? 

Termite damage has a direct impact on property values. Evidence of termites and damage left behind from these bugs can decrease a home’s resale value by up to 20%. It can also hurt overall home value.

The effect termites have on property values depends on the market. The impact depends on several factors, including the extent of the damage, whether the infestation is active, whether the home has been professionally treated, and the strength of the local housing market.

In hot markets with several bidders for each home, termite damage might be overlooked if it means securing an otherwise high-quality home in a desirable neighborhood. A buyer who is willing to take on the repairs may even have an opportunity to purchase a home in a desirable neighborhood for less than comparable properties.

From a home seller’s perspective, termites can slow the sale process because these annoying bugs drive away buyers. If a seller is upfront about the damage, they might have fewer showings. If they don’t tell buyers about the termites until they are discovered during the inspection, they could risk losing the sale. In the worst-case scenario, the seller could be accused of fraud for not disclosing the known termite issue in the sale of the house. 

While termites are frustrating for sellers, they present opportunities for buyers. You could potentially buy a desirable home for a fair price if you are willing to accept the termite damage and set aside funds to repair it once you move in. This is an opportunity to immediately increase your home’s value by ridding the property of termites and stabilizing the home, since leaving the damage untreated can further reduce value and raise repair costs.

Are Termites a Dealbreaker?

Not necessarily.

The first question isn’t simply, “Does this house have termites?”

Instead, ask:

• Are the termites currently active?
• Is there evidence of a previous infestation?
• How extensive is the damage?
• Is the damage cosmetic or structural?
• Has the home been professionally treated?
• Are there records documenting previous treatment?
• What repairs are necessary?
• How much will treatment and repairs cost?
• Who will pay for those repairs?
• Will your lender approve the property in its current condition?

A house with evidence of past termite activity may be very different from a house with an active infestation and significant structural damage.

That’s why a professional inspection is so important.

Signs of a Termite Infestation

As a buyer, you need to familiarize yourself with the signs of termites regardless of whether the seller claims the house is bug-free.

They might not realize they have a termite infestation or they could be trying to hide the presence of termites until the buyer has made an offer. Here are a few warning signs to look for: 

• Mud tubes on the exterior of the house: some termite species (like subterranean termites) create mud tubes to form a tunnel from their mounds to their food source. Look for these tubes along the foundation of the house, especially if there are any visible cracks in the foundation. Wood siding that touches the soil can also give termites both an entry point and a food source.
• Hollow or brittle wood: termites eat wood from the inside out, which allows them to stay hidden and protected. Check for wood that sounds hollow, feels brittle, or is delicate to the touch – especially if the wood is meant to be sturdy.
• Termite droppings, known as frass: the waste that termites create while eating wood is known as frass. It looks like coffee grounds or sawdust that tools where the termites are eating. If you find frass in your home, you might have an infestation.
• Discarded termite wings: termites swarm as a colony and fly to a new food source. When they discover a viable source – in this case, your home – they shed their wings and settle in. Look for wings near the entrances of the home, including any doors and windows.
• Visible damage: In some cases, you may notice damaged wood, buckling surfaces or other signs of deterioration.

In most cases, you won’t see the bugs themselves unless the infestation is severe, though some damage may still be visible to the naked eye. These insects are good at hiding while they eat away at the home.

Professional home inspectors and pest control technicians know how to spot the presence of termites and evaluate the amount of damage they have caused.

Do You Need a Termite Inspection When Buying or Selling a Home?

A termite inspection can be an important part of the home-buying process, particularly when there are signs of termite activity or the property is located in an area where termites are common.

Some buyers can purchase homes without a pest inspection. Others are required to complete this step to get their home loans approved. Some lenders specifically require a Wood-Destroying Insect Inspection Report to approve financing. Requirements can vary by loan type and location, so buyers should check with their lender.

If you are buying a house with cash, you can waive the home inspection and pest inspection if you want your offer to be competitive. While this increases the chances of your bid getting accepted and allows you to move in sooner, it also comes with a significant risk.

You might not be aware of the full condition of the house. This means you risk buying a property with foundation issues or a damaged roof. 

If you are buying a house with a mortgage, your lender might require you to get a dedicated termite inspection to confirm the house is in good condition. This is typically a requirement of VA loans and some FHA loans. Keep in mind that regular home inspectors are not termite specialists. You may need a pest control company to assess the extent of any activity and damage.

Even if your lender doesn’t require this inspection, you might want to call a professional to check for termite activity so you feel confident in your home purchase. Your home inspector should know how to look for termite damage. However, calling a termite specialist can give you a professional opinion and a treatment plan if termites are found.

A pest inspector will cost between $100 to $325, depending on your region and the size of your house. For example, pricing for a half acre lot may differ from a smaller property. Some pest control companies offer free termite inspections to potential customers. Talk to your lender to see if one of these free inspections will suffice.

What if the Termites Aren’t Active?

Don’t automatically assume that evidence of termites means the home currently has an active infestation.

Past termite activity can leave behind evidence long after the insects are gone. That’s one reason buyers should look at the home’s treatment history and have a professional evaluate the property.

Mike Dotson of Red Realty in Murfreesboro, Tennessee, recommends doing your due diligence rather than assuming that evidence of termites automatically means you should walk away.

“The past presence of termite activity may not always indicate you should not buy that home. Do the due diligence.”

Dotson also points out that evidence of previous termite treatment may remain even when the activity is no longer current.

The key is determining what the evidence means today and whether the home has been properly treated and maintained.

Is it Safe to Live in a House with Termite Damage?

The answer depends largely on the extent of the damage.

Termites themselves generally aren’t considered a direct threat to people, but significant termite damage can create problems for the structure of a home.

If the home inspection discovers evidence of termites, you will encounter one of two situations.

1. The property will have an active termite infestation.

2. You may be considering a home with termite damage from past activity that hasn’t been addressed.

The state of the infestation and the extent of the damage will help you decide whether this is a deal breaker in the purchase process, especially once you know whether the issues are cosmetic or structural. 

Damage to important structural components such as floor joists, beams or other load-bearing elements can be much more serious than surface damage. Weakened wood can also contribute to additional problems involving moisture and deterioration.

Termite treatment may eliminate an active infestation, but it doesn’t automatically repair the damage termites have already caused.

Before buying, make sure you understand:

• Whether the infestation is active
• How extensive the damage is
• Which areas of the home are affected
• Whether structural repairs are necessary
• Whether those repairs have already been completed
• Who will complete and pay for any remaining repairs

There are multiple reasons why it is not safe to live in a house with termites and termite damage.

Here are a few concerns to be aware of: 

• The insects themselves are unsanitary, even if you never see them. They will still spread their frass and discarded wings throughout your home.
• As the wood is eaten away, your home loses structural support. Damage to main supports or floor joists is especially serious because those areas help hold the house up.
• Hallowed-out wood is also more receptive to moisture, which can cause it to warp and wear out.
• Mold can grow in the eaten-away wood, which poses severe respiratory threats to you and your family. Termite damage can take over 10 years to become severe, so older untreated problems may be worse than they first appear.

Surface issues like sheetrock scarring may be cosmetic damage, but damage to critical wood structures is far more serious.

Even if a house receives termite treatment, the existing termite damage might cause additional problems in the future. Moisture, mold, and weakened support beams can make your house unsafe to live in. If none of the damage has been addressed or remediated, you could end up with a money pit as you try to rebuild the structure of your home.

How Much Does Termite Treatment Cost?

The cost of dealing with termites can vary dramatically depending on the type and extent of the infestation and the amount of damage.

Treatment may involve eliminating the active infestation, repairing damaged wood, replacing materials and addressing conditions that contributed to the problem.

The important thing for a buyer is to look beyond the initial treatment cost.

For example, a relatively inexpensive termite treatment may not tell you much about the cost of repairing structural damage that was discovered during the inspection.

Get estimates for both treatment and repairs before deciding whether the property is worth buying.

It’s also important to remember that termite damage may not be covered by a standard homeowners insurance policy, so buyers should understand their potential out-of-pocket costs.

Christy Crouch of The Crouch Team at RE/MAX All Points in Roanoke, Virginia, recommends focusing on the actual damage and the cost of addressing it.

“It’s not life ending if a home has termites. Cover yourself by making sure there’s no real damage, negotiate or find out the cost to treat and happily move forward with your new home.”

That’s a useful way to approach the problem: don’t focus only on the presence of termites. Focus on the financial impact of the problem.

Cost Breakdown

If you are interested in a termite-damaged home, consider the full cost of repairs and mitigation to restore the property to structural soundness.

The termite home inspector should review the extent of the damage, and after the inspection you should get repair estimates from a licensed contractor. Set a budget for what you are willing to pay to fix the issue and determine whether the costs are higher or lower than you expect. This can guide your decision to buy a house with termite damage or not. 

Angi estimates that it costs between $250 and $37,500 to address termite damage. That is a huge variance. While the average homeowner pays around $3,000 to address termite problems, some people will pay more than $50,000 depending on the size of the home and the severity of the damage. Termite damage is rarely covered by homeowners insurance, so buyers should budget accordingly.

The cost estimate will cover the price of removing the termites, addressing structural damage, replacing eaten-away wood, and potentially even replacing walls and paint. The earlier you catch and address the termites, the less you will have to pay, because infestations left untreated can lead to significant damage and much higher repair bills.

Even after you rid your house of termites, budget for pest inspector appointments and regular treatment against bugs. Most pest companies offer annual plans with monthly payment options. Treatment should be followed by a re-inspection to confirm the termites were eliminated. This will protect your home from future infestations after you work so hard to remove the termites.

Can You Negotiate When Buying a House With Termites?

Yes. A termite problem can become part of your negotiations with the seller.

Depending on the circumstances, you may be able to negotiate for:

• The seller to pay for termite treatment
• The seller to make necessary repairs
• A credit toward your closing costs
• A reduction in the purchase price
• A combination of treatment and financial concessions

The best option depends on the severity of the problem, your lender’s requirements and the terms of your purchase contract.

Ashley Lewis of Barrett Real Estate in Chandler, Arizona, notes that buyers may be able to negotiate treatment before moving into the home.

“Termites do not define a person’s love for a house. So, yes. You should buy the home, even if it has termites. As a buyer, you’re able to negotiate a treatment before moving in…It really can be a stress free situation for a homeowner and they can go back to enjoying the house they bought and love.”

If you’re considering a home with termites, talk with your real estate agent about how the inspection findings should affect your offer or repair negotiations.

Pros of Buying a House With Termites

Despite the risk of buying a house with termites, there are multiple benefits of moving forward with a home purchase even if a property has termite damage. Here are a few reasons why you might decide to do so. 

Less Competition

Other buyers might avoid properties with termite damage so you can find houses in desirable areas to tour.

Potentially Lower Purchase Price

Sellers should account for the impact the termites have on their property values, and you may be able to negotiate seller credits for termite repairs instead of only a lower price. You might enjoy a smaller mortgage and use the savings to address the termite issues.

Higher Resale Value

Fixing termite damage and eradicating these insects can make the house desirable again. When you move, the house is more likely to sell for a higher price.

Opportunity to Buy in a Desirable Location

A home with a manageable termite problem may give you access to a neighborhood or property you otherwise couldn’t afford.

“With sandy soil, many houses will present with termites at some time. It is a matter of whether they are managed and treated before the damage becomes excessive. The only thing that can’t be corrected on a house is the location.”

Gail Carillo, Coldwell Banker American Homes, Long Island, NY

Transparency in the Purchase

There is a major difference between buying a home with a documented termite issue and discovering serious damage after closing.

When the problem is identified during the inspection period, you have an opportunity to investigate it, negotiate and decide whether to move forward.

You Can Oversee the Repairs

If you purchase a home that needs termite-related repairs, you may have more control over the contractors, materials, and scope of work than you would if a seller completed the repairs before closing.

Sellers might try the cheapest remediation options to pass inspection and move quickly. However, they might not be the best. A house that has already been treated can still be a good purchase if the repair work and treatment records are solid.

By completing the repairs yourself, you’re able to ensure that the work is done properly and completely. While this is additional work, it may be worth it.

Cons of Buying a House With Termites 

Buyers face several risks when purchasing a house with termites. Not only is the structure affected, but this decision could hurt your finances in the long run. Here are a few drawbacks to keep in mind. 

The damage could be worse than it appears.

Some damage may not be obvious to the naked eye, and hidden issues can show up only after walls are opened, increasing your repair costs.

Your lender might not approve the loan.

Some banks and credit unions won’t issue loans on properties with extensive damage. You might need to negotiate with the seller to address the termite issues before closing, or use an escrow holdback if treatment or repairs must be finished around closing.

The move-in date could be delayed.

If you decide to repair the property before moving in, you might need to stay in temporary housing for a few months. Any delays by your licensed contractor could push back your move-in timeline.

Repairs could be expensive.

Termite treatment may be manageable, but extensive structural repairs can quickly increase the total cost of the project.

That’s why it’s important to get professional estimates before deciding that a lower purchase price makes the home a good deal.

You might have a hard time selling in the future.

Sellers have to disclose termite history. While you can highlight your repairs and preventative maintenance as an asset to the home, some buyers might be wary of anything mentioning termites.

Buying a home with termites could be more work than you are ready for. Even if you are ready to make repairs or think the work is minor, unexpected issues could increase your project costs and extend the remediation timeline. If the house treated history is unclear, the previous owner’s records and disclosures become especially important.

Decide if Termite Damage is Too Much

If you fall in love with a house that has a termite problem, you might still decide to buy it. Don’t make your decision based solely on the word termites.

Instead, work through the numbers and the facts.

1. Determine the extent of the damage

Get a clear picture of the extent of the damage and whether the homeowner has taken steps to address it. Before closing, confirm whether the infestation was eliminated and whether the house treated for termites was documented properly. Determine whether there is an active infestation or simply a history of termites.

For example, in Arizona, buyers can also review Termite Action Report Forms. These are public records, to see whether the home treated by a licensed professional appears in the file. Most houses have at least some termite presence. However, a responsible homeowner will work with a pest professional to remove them as soon as they are discovered. 

2. Get treatment and repair estimates

Don’t guess. Get estimates from qualified professionals, so you know what you’re potentially taking on.

The inspection report will tell you whether extensive repairs are needed or if you only need to resolve a few issues. Even a new home is not automatically exempt from termite risk, so you still want inspection results and documentation.

3. Decide whether you are okay with buying a house with a termite problem.

This is more of a personal decision. What issues are you willing to accept? About 600,000 homes have termites every year, and roughly 30 million homes have sustained some level of termite damage. It’s not uncommon, but each home buyer must decide whether to accept it.

4. Factor the costs into your offer

Once you understand the problem, you can determine what the home is actually worth to you.

A house that looks like a bargain at first may not be once you add tens of thousands of dollars in potential repairs.

On the other hand, a home with a manageable termite problem could still be a good purchase if the price and terms reflect the cost of resolving the issue.

5. Negotiate with the seller

Your agent can help you determine whether it makes more sense to request repairs, ask for a credit, negotiate the purchase price or walk away.

6. Know when to walk away

Not every termite problem is worth taking on.

If the damage is extensive, the repair costs are uncertain, the treatment history is unclear or the financial risk is too high, walking away may be the right decision.

As Joe Bourland of eXp Realty in Phoenix, Arizona, points out, evidence of termites isn’t necessarily the end of the deal—but you need to know what you’re dealing with.

“If there is merely evidence of termites, the issue can be very minor. Move forward with the purchase with proper treatments. Just make sure your termite inspection has identified any damage they have caused.”

The goal isn’t to find a house that has never had a termite.

The goal is to understand the condition of the house you’re buying and the cost of making it right.

Work with an Expert Real Estate Agent

You don’t have to be a termite expert to determine whether a house is safe to buy or a good investment. An experienced real estate agent can help. A quality Realtor can guide you through the purchase process and review the termite reports and damage with you. They can also help you walk away from the deal if you don’t feel safe buying the house. 

Turn to FastExpert to find a Realtor to represent you. They can help you find a house in good condition that is free of mold, structural damage, and other issues.