What is a Termite Inspection?
A termite inspection (officially a Wood-Destroying Insect Report or WDI) identifies the presence of termites, carpenter ants, wood-boring beetles, and other organisms that damage wood structures. Termite inspections are required by many lenders (especially VA loans and FHA loans) and are standard practice in real estate transactions across most of the United States.
The inspection involves a visual examination of accessible areas for evidence of activity (mud tubes, frass, damaged wood, swarmers), moisture conditions that attract termites, and wood-to-soil contact that provides entry points. Inspectors do not open walls or move heavy objects, so hidden infestations may not be detected. Inspections cost $75-$200.
Types of termites
Subterranean termites: The most destructive type in the U.S. They live in soil and build mud tubes to reach wood. Found nationwide but most active in the South and Southeast. Cause over $5 billion in damage annually.
Drywood termites: Live inside the wood they consume, without soil contact. Found primarily in coastal and southern states. Evidence includes small piles of pellets (frass).
Formosan termites: An aggressive subterranean species found in the South. Colonies can contain millions of individuals and cause rapid structural damage.
Treatment and repair costs
Treatment for active infestations costs $500-$2,500 depending on method and extent. Chemical barrier treatments run $500-$1,500. Bait systems cost $800-$1,500 initially plus $200-$400 annually. Tent fumigation for drywood termites costs $1,200-$2,500. Damage repair costs vary from $500 for minor cosmetic repair to $10,000+ for structural remediation of load-bearing members.
Termites and investor deals
Active termite issues or damage history can deter retail buyers and create opportunities for investors. Treatment is relatively inexpensive compared to the discount it creates. For flip investors, termite treatment and damage repair should be itemized in repair estimates. For rental properties, annual termite bonds ($200-$400/year) are a standard maintenance expense.