Clients often ask when is the best time to order a termite inspection for a home sale. The best answer really depends on the individual circumstance of the seller and the home being sold.

Before getting into escrow is best when…

The home is older, has not been sold within the last 5 years, shows signs of general neglect or is located in coastal areas where termite pressure is highest. The inspection may disclose findings that will require additional expense on behalf of the seller; therefore, knowing what these expenses might be before negotiating a final price is the course of wisdom. In some cases, an experienced Realtor or an aware owner will already know that there will be some expense relating to termites or other wood destroying organisms. If this is the case, an inspection may be delayed since the cost can be estimated in advance.

The downside of getting an inspection before entering escrow is the seller may need to pay for the inspection personally as opposed to having it billed to escrow. Also, if the home is not sold within 4-6 months a new inspection, report and inspection fee may be required once the property does go into escrow. Some companies will offer a discounted rate for inspections in these situations. It’s best to ask the termite company if this is their policy.

Regardless of the downside, getting an inspection on most homes before negotiation is usually the prudent option.

Performing the inspection after getting into escrow may be advisable when…

The home is relatively new, has been sold within the last two years and the home has been properly maintained by the current owner. If these factors exist, the risk of getting a troubling termite report may be reduced.

The bottom line is, being armed with information is a good thing, especially before negotiating the sales price. Choose a firm that charges a nominal fee for inspections, beware of ‘free’ inspection offers. Remember nothing is ‘free’. Select a reputable termite company that specializes in escrow transactions and have the Inspector go over the report with you and Realtor if possible. Doing so will ensure everyone is clear on what needs to be done to get the termite clearance and your escrow closed.