The term termites in an inspection report can torpedo a home sale. It is a natural thing to do to walk away, and in some instances, it is the correct thing to do. It doesn’t, and the report doesn’t tell buyers what buyers are thinking.
The first thing to do is to call the inspector and ask them to explain to you what they actually saw. Rather than reading you a report on it. Ten minutes on the phone will be informative, more so than a written report. If the result of the building checking is a general inspection, make a note to have a specialist termite inspection in Sydney prior to exchange of contracts. A timber pest assessment is much more in-depth, and will provide you with an indicator of the level of confidence the inspector has in the situation behind the walls.
Damage vs Activity are two different finds
This is the difference that makes all the difference and is one that is lost on most readers initially.
If there is any evidence of past activity, it means that there were termites at some time. The workings may have been written years ago and the colony may not be there anymore, and the area may have been treated. It is not uncommon to see some history in many Sydney houses that are more than 30 years old.
Active currently in the building. That must be treated first before anything else is considered and it alters the negotiation.
The conditions that the findings people ignore: Garden beds built up against the wall, a leaking tap, bad subfloor ventilation, timber stored against the house, mulch banked up over the weep holes. That is why the termites come and they are generally within reach to repair.
Dealing with a report of old workings and three enabling conditions is easier than dealing with a report of live termites in a load bearing wall.
What the inspector could and couldn’t see
Visual, or non-invasive, timber pest inspections are the standard type of inspection. The inspector investigates areas where access is not restricted and makes a report of what is seen on the day. They do not open up walls, lift up floors or move heavy furniture and the report will state so.
Thus, there is a need for the recommendation section. If it indicates there is more to be done, such as water reading, or the need for further investigation with thermal imaging or radar equipment, then take this seriously and don’t assume the job is done. A good assumption is cheaper than the cost of an invasive inspection.
Specifically ask if there are any affected structural timber. The lines of skirting and architraves are cosmetic. The difference is not Bearers, Joists, Wall Studs and Rooftimbers, and not a modest repair and not a significant repair.
Don’t make decisions until you get the numbers.
These are two quotes, both from different trades:
A licensed pest technician to treat and, if necessary, to provide an ongoing termite management system.
A contractor who has determined the extent of the damage, and thus has a plan in place for repairs.A contractor that has determined the amount of damage and has a plan for repairs.
Interesting fact: Termite damage is almost always excluded from the home and contents insurance policy in Australia. What is not a policy waiting for after settlement is why this shouldn’t be in the to-do list and should be in the negotiation.
You can choose from a variety of contracts.
The private treaty sales in New South Wales generally have a cooling-off period of 5 business days. This is your time to act. If the redemption is canceled in it, 0.25% of the purchase price will be lost. There is no cooling period at auction and building and pest inspections should be conducted prior to making an offer, not after.
There are three realistic choices from there:
Negotiate: Use quotes to try to negotiate a lower price, or have treatment and/or repair done before the settlement is reached, supported with evidence.
Proceed with conditions: appropriate for old and treated damage in non-structural timber where risk is acknowledged and used in the cost.
Walk away: Reasonable where there is live activity in structural elements, or where the vendor won’t allow further investigation.
The termite history is not a term that must be provided by the NSW seller. The best protection you have is your own inspection, so take advantage of it!
Frequently asked questions
Is there any need to worry about termites damaging the house if it’s not safe?
Usually not. Damage usually identified on inspections is isolated and fixable. When structural elements are compromised, safety issues can occur, and a builder can determine the extent when he knows it.
May the vendor simply treat it prior to settlement?
They will and many will. Request the treatment certificate, technician’s license information, warranty information, and re-inspection to be certain that the job is completed correctly.
Are homes that have been treated in the past an unfortunate purchase?
Not at all. A house that has been treated and has a management system and annual inspections would be less risky than a house that is not treated and has never been inspected.
When should I check after purchase?
In most parts of Sydney at least once a year and more frequently in higher risk areas or in areas where conducive conditions occur. It’s a little expense you have to pay out of pocket when you need to get something fixed that insurance won’t cover.