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Selling a Home with Termite Problems: What You Need to Know

Edie Israel

After years of executive sales and marketing experience as well as entrepreneurial success, Edie entered into the real estate market of Southern Calif...

After years of executive sales and marketing experience as well as entrepreneurial success, Edie entered into the real estate market of Southern Calif...

Oct 29 4 minutes read

If you're selling a home, it all becomes a lot more complicated if you have termite problems. Termite infestation is one of the biggest red flags for buyers, but you can take steps to counteract any potential fallout. Read on to learn more about this issue and how you can preserve your home's value.

Take Care of Business

If your home has termite problems, have them treated prior to listing the house. Call a professional termite treatment company to conduct a full inspection of your home, including the attic and other areas not readily accessible to you.

Though you may balk at the cost of treating termites, it will be worth it when your house goes to market. It's also important to invest in annual termite control once the problem has been contained. It's good to have a record of treatment plans when you sell your home. Verify with the pest control company that you can transfer the warranty and treatment plan to the new buyer.

The next step is to call in a licensed contractor to inspect for existing termite damage. If the inspection turns up any problems, have them fixed. This could be a simple fix or a major repair, but either way, having the work done before listing the house will remove most of the objections that potential buyers may pose.

If you choose not to fix the issues prior to listing your house, you can expect a longer time to secure a buyer. Potential buyers will likely submit offers much lower than the listing price if the house has untreated termite problems or existing damage.

Your Responsibilities as a Seller

When selling your home, you are required by law to disclose any termite activity or damage you are aware of. The state requires the use of a standard seller's disclosure form that you must fill out and provide to potential buyers, and you must note any known problems, including the presence of termites. Failure to disclose a material problem (that you're aware of or should be aware of) can result in legal action.

When you complete the disclosure form, you must describe any current or previous termite activity, any termite treatments that have been conducted, and any damage that the termites have caused even if the damage has been fixed. Providing receipts and warranties from your contractors will offset any potentially damaging disclosures that you must make.

Selling Your Home

To ensure that the transaction goes smoothly, be forthcoming with all termite-related information. Use licensed contractors and a certified termite inspector for all inspections and repair work. This way, your potential buyers will be legally protected if anything was not done in accordance with laws or building codes.

The bottom line is that, if you can produce documentation detailing how you have dealt with any termites and resulting damage, buyers will mount fewer objections. If you can demonstrate also that you have kept up with ongoing treatment to make sure the problem doesn't resurface, then you should have no problem selling your home.

If, however, you have not repaired damage done by termites or controlled the infestation, these facts can have a significant impact on your ability to sell your home.

If you are located in Southern California, contact the experienced Realtors® of the Edie Israel Team today. We understand the legal process regarding property disclosure, and we can help you understand its complexities. Contact us today if you plan on selling a home in the Yorba Linda area.

Sell Your Home

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