The licensed company you hire to detect termite damage at your property also checks for dryrot, which is a fungus damaging wood.
Why should prudent sellers obtain a “termite inspection” before putting their home on the market? It is customary for sellers to pay for a report and repairs of active infestation damage when selling a home. The home must be free of active infestation prior to closing escrow in the case of most sales. Although this contract clause can also be negotiable, a seller can really only negotiate effectively if the COST of the repair is known. Consider the scenario below, which is a true story:
The seller accepted an offer on her home, and according to contract, proceeded to have the pest inspection performed. The hilltop home has a very large wrap-around patio, most of it covered with a wood patio cover. The contract stipulated that the seller pay for repairs of termite and dryrot damage. The inspection report showed extensive dryrot on the large patio cover: Repair/replace estimate of approximately $ 18,000. Clearly the seller was not ready for this news and tried to get out of having the patio cover replaced. Not doing the repair would have been a breach of contract, so the owner was forced to spend the $ 18,000 and repair the damage as stipulated in the purchase contract or get sued for breach.
How can a seller avoid such a scenario?
If the inspection had revealed such significant damage before the home was on the market, the seller could have opted to remove the patio cover. What is not there the day a buyer sees the home an buys it does not need to be repaired. Obviously this is only an option for patio covers and non-essential sheds or tree houses, not structural features like facia boards, doors and other supporting woodwork.
Advance knowledge is power. Knowing what will occur during the sales process and what the condition of their home is helps sellers make decisions which assure the best possible sales outcome.
