can you Sell your House With Termite damage

Can You Sell a House With Termite Damage?

Selling a house is never an easy prospect but now you have to deal with termite damage too? 

If I needed to sell my house and I found out on inspection that there are termites my stress levels would go through the roof! I would have so many questions like:

  1. Is it illegal to sell a house with termite damage?
  2. Can you sell a house with termite damage?
  3. Do I have to repair the damage or can I sell it as-is?
  4. Who would even buy my house with termite damage?

Straight to The Point About Selling A Termite Damaged Home

You can sell a house with termite damage. Of course, selling a house that has been damaged by termites will require some extra attention but do not despair because with the right knowledge, you will get your house sold. 

Speaking of the right knowledge…

This article will cover everything you need to know about selling a house with termite damage. We will discuss:

  • House Value
  • Active Termites versus Historical Damage
  • Property Disclosures
  • Who would buy a house with termite damage?
  • Is termite damage a deal breaker?

Because of this, you need to read this in-depth guide, if you want to know more about selling a house with termite damage.

Shall we begin?

termites in wood

Termites are responsible for billions in property damage yearly and are active in almost all states—except Alaska, whose freezing conditions are not conducive. They are also quite sneaky, and an infestation can remain hidden for long before it is discovered.

They can land you in the cross hairs of an undeserved legal suit if you sell your house for cash only for the cash home buyer to discover they have been nibbling at the wooden structure from the inside out. They can also make your listing stay longer in the market if the buyer’s inspector can catch their subtle warning signs.

Can You Sell a House With Termites

This gets you thinking about whether it is possible to sell your house fast for cash with termite damage and if it’s even worth the trouble. The good news is you can sell a house with termite damage, but you have to disclose the damage to potential cash buyer before closing so that they know what they are getting into.

In this article, we will guide you through the available options if you need to sell your house with its termite infestation and how to go about them. We will also break down the situation so that you understand the implications. We know it’s more complex than your regular house sale.

Table of Contents

How Do Termites Affect the House’s Value?

Sell a House With Termites

The overall effect of a termite infestation on the market price depends much more than the termites. Other factors like the prevailing real estate market and the house’s location also come into play.

Buyers can afford to be picky when there are abundant options to choose from in the market. Your property listed with historical or existing termite problems will be passed by frequently in such a market unless you set the price significantly lower than the market price to make it irresistible.

sell your House With Termite damage

The house will be less stigmatized if a termite infestation is common in the neighborhood. Termites are harder to find in some cities than in others; they love tropical weather with its combination of warmth and moisture that they need to thrive.

In such places, their presence will not impact the house price much because the competition has the same conditions, and your average home buyer is better conditioned to accept the situation.

The takeaway from this is that you should take the initiative to get rid of termites before listing to maximize returns from the sale and increase your pool of prospective buyers. That said, the house still stands a chance to be bought with the termites, but at a lower price.

termite eating house

How Does Potential Structural Damage by Termites Affect the Sale of a House?

Sell your House With Termites for cash

Can I sell my house with termites?

Potential buyers will generally keep off properties that seem to be money pits. A house that requires repairs straight from a purchase is not appealing. This is why you should make the necessary repairs and renovations after removing the termites if you consider listing the home. This makes the home much easier to sell.

The extent of the damage will influence the buyer’s willingness to take it on; they will be more inclined to take a risk when the house’s structural integrity has not been compromised.

Termite-induced repairs come at a cost and are normally not covered by insurance. If you can’t afford to pay for the damage, you indirectly can pay the buyer to do it by lowering your asking price or selling it to a cash buyer willing to take over the compromised house as it is.

Can You Sell a House With Active Termites?

Sell your House With Termites for cash 1

Is it hard to sell a house with termites?

It is not always bad news when a pest inspection reveals ongoing termite activity. There are places in the country with such a high prevalence of termites that a minor colony is considered normal. 

Your house will not be the only listing with termites, and it will come down to the size of the colony and the amount of effort required to salvage the situation.

The buyer might request that you follow through with termite treatment with a pest control company at your cost and cover any repairs needed because of the termite problem. 

Alternatively, you can renegotiate the terms of the agreement and give them a discount on the price so they can fix it themselves if you lack the time or capacity to do the work yourself and they are agreeable.

termite entering house

Can You Sell a House With Historical Termite Damage?

Suppose you have already treated the house for termites. In that case, home buyers will need documentation of proof along with evidence of any structural repairs that were made and/ or direction on what still needs to be done to restore the building following the termite problem.

Professional termite inspectors can distinguish between evidence of past and prevailing termite activity. They will issue a statement to that effect which the buyer might consider a green light to proceed with the transaction.

When Is Termite Infestation a Deal Breaker?

It is worth noting that the regular buyer looking for a home to settle their family may still draw a hard line against any history of termites despite your best efforts to treat and repair the house. 

They are also subjected to their lender’s policies which might be against financing properties associated with termites.

Some termite infestation cases are too advanced for a regular buyer to deal with. The colony might have grown to millions of termites before any action was taken and now requires advanced extraction methods.

This may have caused extensive termite damage. The structural damage to the house might also be so extensive that its structural integrity is compromised.

You should include specialized house buyers in your prospect list as a fallback for situations like these. 

These buyers can buy the house in cash without seeking approval from financiers and will make their judgment call on the termite situation on the spot. You will avoid a lot of back and forth, and their offer will come early, although slightly lower than the market price.

Inspecting the House for Termite Damage

It is advisable to engage your own expert inspector before listing the house so you can detect this sneaky menace in good time. A termite inspection also provides an opportunity to detect the presence of any other wood-destroying insects like carpenter ants, thereby covering all your bases.

They can differentiate the sound produced by a hammer hitting a hollow beam consumed from the inside by termites and a solid one. They will also know where to look for the pile of wings that termites shed as they go through their life cycle or the tiny brown pellets of excrement that are never far away.

You can also engage a wood repair expert to assess the structural damage caused and approximate what it will take to restore it. This helps you decide if the cost of extermination and repair to stage the house can be justified by the value addition.

Doing your own assessment will help determine the listing price and set bargaining limits. You will know how to address any contingents placed on the purchase agreement that may be pegged on the buyer’s approval of their termite inspection report.

Implications of Full Disclosure of Termite Damage

The law requires you to disclose any known history of termites and house defects to the buyer before closing the sale.

Your typical buyer will order for their own termite inspection the moment you mention it, whether it has been handled or not. If the buyer is taking out a mortgage, chances are that the lender will require a termite inspection along with the general home inspection before the sale is closed.

Who Pays for the Termite Inspection?

This expense is typically borne by the buyer, whether they personally requested the inspection or their lender did. Once the seller discloses the house’s termite history, the buyer must schedule any necessary inspections before closing the sale.

As the seller, you will only pay for an inspection if you sanctioned it to check on the state of the house. The buyer and/ or their lender will not rely on a report from an inspection you sanctioned but will conduct their own independent inspection.

What Options Do You Have If the Termite Inspection Report Is Unsatisfactory to the Buyer?

Many home purchase agreements nowadays are contingent on the results of inspections, such as termite inspections meant to reveal hidden complications and hazards. The buyer can back out of the contract without legal repercussions if the house fails the termite inspection.

Experienced real estate inspectors know that the mere presence of termites doesn’t mean the house is irreparably damaged and should be condemned. They also consider where the termites were found, the size of the colony and how long they had to inflict damage before they were discovered in their report.

Some buyers will opt to renegotiate the selling price, especially if the damage is not extensive, while others will ask for specific renovations after the inspection.

You are not obligated to fix anything uncovered during inspection and there are certain things you should not fix when selling your house; your incentive for making the repairs, in this case, will be to prevent the buyer from withdrawing their offer. If you feel the task is too big for your resources, you can politely decline and let the buyer terminate the contract.

It is better to sell the house slightly below market rate than to undertake massive renovation projects that will consume a lot of time and resources yet are not guaranteed to erase the termite infestation stigma sufficiently to restore the property’s market value.

Quick Fire FAQ's

You can sell your house with termite damage. However, you must let the buyer know about the termite damage. Letting buyers know is part of the real estate disclosures.

If you sell a house with termites damage you will have to discount the price. You will have to discount the price if the termites are active or not. 

An alternative is to hire a pest control professional before you list your house. The pest control service will treat your house and rid your property of termites. Of course, now you may not have termites but you might have termite damage that you need to disclose when you sell your house. 

The amount of termite damage that affects the value of your home will depend on how much damage there is. To work out how much the termite damage reduces what your house is worth, you can follow these simple steps:

  1. Have a pest control company locate all termite damage. Be sure to have them spray for any termites that are still active.
  2. Alternatively, you could hire an inspector or reach out to handymen and builders to identify any termite damage.
  3. Once all termite damage is identified, you need to get 3 quotes to fix the damage.
  4. once you have the quotes, you will know how much it will cost to fix the termite damage.
  5. At this point, you can make the repairs before you sell the house. OR you could reduce the listing price of your home in the amount of the repairs PLUS a little extra for the inconvenience. This amount is really up to you. If there were a repair of $20,000 required, I would personally expect n additional $5000 off the purchase price to have to deal with it. 

Whether you walk away from buying a house depends on the damage the termites have caused. It also depends on your willingness to fix the damage after you buy it. 

A massive benefit to buying a house with termite damage is that you can negotiate an excellent deal.

For example, if the cost to fix the termite issues is $10,000, you could ask for an additional $10,000 discount. You could even ask for a $50,000 discount. The seller may not accept it, but it’s worth asking.

It comes down to personal preference if you walk away from buying a house with termite damage. I would buy the house with termite damage, but closing would require a significant discount. 

This is a simple step-by-step process to negotiate a termite damage discount on a house. 

Step 1: Work out how much it will cost to fix the termite damage.

Step 2: Get 3 quotes – all in writing.

Step 3: Find a number that you feel is fair compensation for dealing with the termite damage after you buy the house. 

NB: The amount you feel is fair will differ for everyone. My suggestion is whatever number you come up with – DOUBLE IT!

Step 4: Ask the buyer for a discount because of the termite damage.

Step 5: If the seller refuses, remind them that they will have to tell potential buyers of the termite damage. This may help them decide your offer is fair. 

It is not hard to sell a house with termite damage. This is what you need to do. 

The key to selling a house with termites is first knowing how much damage the termites have caused. Once you know the amount of termite damage then you need to disclose that to any potential buyers. The final piece of the puzzle is finding a buyer willing to buy the house with the termite damage. is a home-buying company that buys houses with termite damage. We have been in the real estate business for a long time. Therefore we know other case home buyers across the country who would be willing to buy a house with termite damage.

Selling to a professional home buyer means you don’t have to fix any of the damage. You get to pick the closing date. Plus legit cash buyers, like us, cover all closing costs!

If you want a FREE no-obligation cash offer on your termite-damaged house from a real deal cash home buyer then fill out this online form. Quick and easy!




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