Monday, 23 April 2018

Should you buy a Termite-damaged Home?

Dreams are bigger than budgets for most people, when it comes to buying a home. Some compromise is, therefore, inevitable. However, wouldn’t you seize the opportunity of minimizing the compromise and maximizing the chance of buying a house that is nearer your dream? There is a way, of course: buying a termite-damaged house. That may sound crazy, but there is some logic behind it.

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Termites ARE a disaster

If the mere thought of termite presence in a house can strike fear into the homeowner, buying an infested one may seem utterly ridiculous to you. No doubt, the problem is serious; however, there is a good reason why you cannot reject the idea straight away – the price is likely to be very attractive! Obviously, it does cost big money to remove the infestation, prevent its recurrence and repair the damage that has already occurred.

At the same time, that is a great negotiating point too with the seller. The final price could facilitate your buying a home that is closer to your dream and located in a neighborhood better than what would otherwise have been possible. That is the upside!

The cost factor

If the amount negates the reduced price of the house, there is no worthwhile gain for the trouble of buying it. If the house is very badly damaged, it would indeed be ridiculous to buy it at all.  This is the downside.

However, if the negotiated purchase price plus the cost of termite control and damage repair is considerably lower than the market price of the house, then you have got a good deal on the house. A normal pre-purchase home inspection will spot signs of termites but may not be able to define accurately the size of the infestation and the cost of the damage repair. That will require the services of a professional termite control company, preferably one that offers a warranty on their work.

Who bears the cost of the termite inspection, infestation removal and damage repair? It must be the seller because the house for sale is a damaged one and it has to be repaired before sale. Some sellers may baulk at the expense but if you can agree on an acceptable price, subject to complete termite control and damage repair, they will often go for it.

Alternatively, the seller has only the inspection done and the cost of the control and repair is deducted from the purchase price. In both cases, it is most important that the inspection, quotation for the work and the work itself are all the responsibility of a professional termite control company.

The decision
The decision to make an offer for a termite-damaged house is not an easy one. A key factor to keep in mind is that with expert termite control and damage repair, the structure can regain its original state before the termite infestation. Effective steps can be taken to prevent their return.

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