Termite damage threatens to eat into home equity
Inspection report reveals an alarming find

Monday, May 02, 2005

By Dian Hymer
Inman News

The long-term owners of a stately home in Oakland, Calif., recently decided to sell. Their agent recommended ordering a pre-sale wood destroying pest inspection, commonly known as a termite inspection. The sellers agreed, confident that there would be no major problems. They had a termite inspection done about 10 years ago and that report indicated no adverse conditions.

The sellers were understandably alarmed when they received the current inspection report that called for repairs totaling in excess of $50,000. How could this much damage occur in such a relatively short period of time?

Unfortunately, not all wood destroying pest inspections are the same. Many homeowners hire pest companies to routinely inspect and treat their homes, some on a regular basis. These are often cursory inspections that don't necessarily uncover underlying structural problems.

In the example above, the pre-sale inspection was comprehensive and was completed by a structural pest control operator. The house in question had a stucco exterior. The inspector did test openings through the stucco exterior in order to determine if there was any wood pest damage, possibly caused by water intrusion.

The test openings revealed that there was dry rot damage to the wood framing behind the stucco that would cost approximately $30,000 to repair. This damage could have occurred decades ago. Since tests openings hadn't been performed previously, it's hard to know when the damage occurred.

HOUSE SELLER TIP: To avoid the above scenario, don't wait until you put your home on the market to order a pest report. If you do, you might discover that you have a major problem that can eat away at your equity. The time to start thinking about ordering a termite inspection is soon after you take over ownership of the property.

Most homeowners are under the impression that the only time you have a termite inspection done is if you're buying or selling a home. Actually, as a homeowner, you have two options. You can either wait until you sell and possibly discover bad news. Or, you can have your home inspected by a structural pest control operator periodically so that there won't be any surprises when you do decide to sell.

This is not to say that you need to have your home inspected annually, although there are some situations, where this would be advisable. Different areas are subject to different sorts of wood pest problems. The San Francisco Bay area has environmental conditions that are conducive to subterranean termite infestation. Farther north, you might find that carpenter ants are a menace. And in dryer climates, dry wood termites may be a concern.

Usually a wood pest inspection is ordered, either by the seller or by the buyer, when a home is sold. It's a good idea to talk directly to the inspector who examined your new home to find out what conditions might have led to any current pest-related problems. It's important to not only fix the damage done by wood pests, but correct the conditions that led to the infestation.

Find out what wood pest problems are common in your area, and what you can do to prevent such problems in your home. In the above example, the cause of the dry rot behind the stucco exterior was probably leakage from a failing roof. The sellers replaced the roof years ago. But, the damage could have easily been missed unless the sellers had hired a termite inspector to do an extensive inspection at the time the roof was replaced.

THE CLOSING: In addition to being aware of what to look for, it's a good idea to have your home re-inspected every several years.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

***

What's your opinion? Send your Letter to the Editor to [email protected].

Copyright 2005 Dian Hymer


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