Active termite damage: the inspection-credit playbook
An active termite finding is one of the cleanest negotiations on inspection. Treatment is straightforward, damage is repairable, and the leverage is built into how lenders treat WDO reports. Here is the playbook.
What this finding actually is
Active termite damage shows up in inspection reports as evidence of subterranean or drywood activity: mud tubes on foundation walls, frass (termite droppings) at the base of trim, hollow-sounding wood at sill plates, or visible damage to joists and sub-floor. The Wood-Destroying Organism (WDO) inspection is a separate report from the general home inspection in most southern states.
Treatment is typically a perimeter chemical barrier ($800 to $2,000) or bait stations ($1,500 to $3,000 plus annual monitoring). Damage repair runs from sister-joist reinforcement ($500 to $2,500) to full sill-plate replacement ($3,000 to $15,000) depending on extent.
Why it is a credit conversation, not a fix-it conversation
In Florida, Georgia, and Texas, WDO reports are required for VA loans and most conventional appraisals. A finding of active termites or untreated damage will either delay closing or trigger lender-required remediation, which the seller must address regardless. Asking for the credit upfront is faster than waiting for the appraisal to force the conversation.
Sellers in termite-heavy regions know this is coming. Most have already budgeted for treatment-or-credit. The negotiation is on dollar amount, not on whether to pay.
How to confirm what your inspector found
The WDO report uses specific language: active infestation, evidence of prior infestation, conducive conditions. Active means living termites at time of inspection. Prior means damage without current activity. Conducive means wood-soil contact, moisture, or other risk factors. Only active findings carry the strongest leverage; prior damage still warrants a repair credit but a smaller one.
The bullet to put in your credit-request letter
Paste this into the bullet list in your credit-request letter and replace the bracketed fields with your own. The structure is what makes it work: finding, page citation, cost range with source, requested credit.
Active subterranean termite activity, WDO report attached (page X). Treatment cost range $800 to $2,000 (perimeter chemical) plus structural repair $500 to $5,000 (sill plate, scope per WDO recommendations). Requested credit: $X.
How much to actually ask for
Anchor at full treatment plus the midpoint of repair. The total is small relative to the leverage, and sellers in termite-prone states almost always accept rather than relist with a known finding on disclosure.
Questions buyers ask before they negotiate
Should I ask the seller to treat instead of credit?
Credit, almost always. Seller-coordinated termite treatments tend to use the cheapest available licensed applicator. Take the credit and pick a treatment with a transferable bond and annual inspection clause.
What is a transferable termite bond?
An annual service contract from a pest-control company that transfers with the home and warranties future treatment and damage. Most cost $300 to $600 per year. The seller's bond often does not transfer; the buyer's new bond does.
Will the lender require remediation before close?
FHA and VA usually require a clear WDO report. Conventional loans vary by lender and appraiser. Get the WDO done early in the contingency window so you have time to negotiate before the lender forces the issue.