Wood dust around your property? Then you may have a termite problem. A termite looks small and insignificant but when a colony starts gnawing on your foundation, then you got a really huge headache. And the last thing you’ll need if you want to sell your home is termites. Should you disclose a termite problem or not, when selling your property?
Most States Require Full Disclosure
It seems that there are no short cuts to termite problems when you are trying to sell your home. All states may have different rules but almost all require disclosure of known termite problem. Also, most mortgage lenders will create a provision into the contract that the property needs an inspection.
As an honest homeowner, if you already know that your home has termite issues, you should disclose it to your realtor regardless if there is an existing state regulation. Sure this will have an effect on the offer you’re going to get but this will also give you a room to negotiate as you deal with the issue.
Buyer Vs Seller Extermination Costs
Usually, it’s a debate as to who pays for the extermination costs but most of the time, the seller gives in. Take this as a gesture of good faith. As the owner, you should cover the costs of termite extermination for the buyer. This gesture will guarantee that the sale will still proceed after the pest problem has been addressed. You can always combine the costs into the closing price.
There are rare occasions when a seller and the buyer agree to split the cost of extermination after the seller discloses the problem in a friendly and honest manner. But what if you still don’t have a buyer? Consider fixing your termite problem beforehand to be able to confidently sell your property for the best price.
Still, you may still opt to just sell your home as it is. This means that you will still disclose the termite problem to your realtor and buyer as the buyer agrees to accept any risk of a termite problem. In this case, you can’t expect a good offer considering the state that your property is in.
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