Don't Let Them Bug You

It has been estimated that termites cause $5 billion in property damage every year in this country. That makes them more of a threat to homeowners than flood, wind, or even fire. And yet, the Federal Housing Administration (FHA) demands separate termite inspections only if the state or local laws require it, or if there is an outright suspicion of damage.

Termites thrive in the warmer climates of the South/Southeast and West/Southwest, but states on the East Coast and even in the Midwest have areas of high risk. Outside those regions, still all it takes is the right combination of warmth, food and moisture to invite a termite infestation.

As a homebuyer, you would be well advised to determine whether the home you are offering to purchase is under a termite protection plan, and to seek a separate termite inspection, even if it's not required. Older homes in particular may be at risk, because of the possibility of cracked foundations, but even new homes could be potential targets if the builders did not correctly perform termite pretreatments.

You probably won't notice the little buggers until the damage is already done, so be sure to get your home into a termite inspection and treatment program as soon as possible after your purchase. If you have any doubts about inspections, ask your real estate representative for advice.

An Ounce of Prevention

If you're planning to go bargain hunting, you are likely to come face to face with a special challenge: the long-vacant home. Many of these properties have been foreclosed, and now rest in the hands of the bank. The owners are long gone.

While the greatest percentage of these "distressed properties" are still in fair to good condition, how can you be sure of possible defects in the home when the previous owners are not available to disclose such facts?

Since the bank-owners and their real estate agent may not know all the details about the previous owners, you would be well-served by ordering a "pre-inspection" if you find an attractive property at a low price. Hire an inspector for a preliminary look, and do not make an offer until you know more.

You can pay just a couple hundred dollars for a brief inspection, money well spent before you submit a bid. Having an idea of the home's true condition can help you determine your offer, or help you make a decision to walk away from the deal, without any obligation.

If the utilities are cut off, ask your representative about getting them turned on during the inspection, which is critical to the inspection's accuracy. Take a careful look at recent sales in the neighborhood, and make your offer armed with knowledge and confidence!