5 Reasons You're Losing Equity Due to a Termite Infestation
Discovering that you have a termite infestation in your home is certainly not ideal, no matter the circumstances. But if you are planning on putting your home on the market anytime in the near future, it can be an absolute nightmare. Very few homeowners will consider purchasing a home with an active termite infestation, and once you are aware of the situation there’s no hiding it. The best thing to do is treat the issue immediately, then do everything in your power to ensure that the problem doesn’t return. Unfortunately, no matter what you do, a termite infestation will likely cause you to lose equity in your home, for the following reasons.
1. The Termite Report
Once you have discovered that you have a termite infestation in your home, you are required to disclose that information to future buyers, no matter how long ago the infestation occurred. This report will include a diagram of the structure and the past treatment locations, and will need to be included as a part of the sales package. Just as with any other possible defect or treatment that has been done, a termite infestation is something that you are legally obligated to inform the buyer of. This can certainly give them a bargaining chip when it comes to the final sale price of the home.
2. Non-Transferable Treatment Warranties
As you know, it’s important to have your termite infestation treated as quickly as possible once it has been discovered. Many pest control companies that specialize in termite control offer treatment warranties that will “guarantee” that your home remain termite free in the future. How this is done is that you will typically pay a fee for repeat inspections, and any signs of termites will be treated right away. When you sign on the dotted line for a termite treatment warranty, it’s essential that you ensure that the warranty may be transferred to new owners in the event that you sell your home. Knowing that they are covered upon move-in can encourage the future owners to consider your home, despite the previous termite activity.
3. Damage to the Home
If you had an extensive infestation and quite a bit of damage was done to the structure of your home, this will naturally affect the value of your home. Structural damage can be quite scary to homebuyers, even if it has been repaired. The best way to avoid this issue is to have routine termite inspections done on your home, that way you catch any infestations early on. The longer termites are allowed to gnaw away at the wood structure of your home, the more likely it is that you will have serious structural damage.
4. An Older Home
If your home is considered to be an “older” home, and is heavily composed of wood, then your risk for termite damage may be considered to be slightly higher. The longer your wood home has been in existence, the greater your chances are that an infestation has occurred at some point. Buyers may be leery of older homes for several reasons, just one of them being potential termite damage.
5. Repeat Infestations
Even if your home is currently termite free, past infestations can be a major negotiating point for homebuyers. If an infestation has occurred multiple times in the past, this is even more true. Although the fact that your home has had a termite infestation before gives little indication that you will have one in the future, it can still give your potential buyers pause. The fact is, termites are unpredictable, and they can strike any time, anywhere. Just because your home had an infestation five years ago doesn’t mean you are necessarily any more “at risk” than any other home. However, this will still give the future owners some pull when it comes to discussing price.
As you can see, termite infestations are simply no good when it comes to the resale value of your home. This is why it’s absolutely essential to stay on top of termite control. Even if you’ve never had an infestation in the past, it doesn’t mean you can consider your home safe. If you’re planning to sell your home soon, reach out to a termite control company in your area for an inspection so that you can be assured that your home is currently termite-free.