Selling a home with termite damage in NEPA can lower your resale value by as much as 20%.
Termites often infest homes silently for many years before homeowners discover and treat them. These wood-destroying organisms are attracted to moisture and soft woods, often attacking crucial framing members of your home and exposed wooden furniture.
Termites cause more than $5 billion in property damage every year in the United States, making them a significant threat to residential properties in Pennsylvania with wooden frames.
Even if termites are treated, and past damage exists, it can still lower your resale value and impact insurance coverage. Any termite damage must be disclosed on the seller’s disclosure, making it illegal to cover up past damage.
If you’re buying or selling a home in Northeast Pennsylvania and are curious about how much past termite damage can affect the value of your property, this guide will walk through different scenarios to provide a rough estimate of how much it will lower.
How Much Damage Can Termites Cause to Homes?
Over a few-month period, a single colony of 60,000 termites can chew through an entire 2×4 plank of wood.
In Pennsylvania, where subterranean termites are the most common termite–and also the most destructive–the average colony can consist of anywhere from 60,000 termites to over one million.
The primary issue is that termites can often exist for months, if not years, before being discovered. All it takes is one severely weakened floor joist, loading bearing beam, or wall stud to cause structural issues that ripple throughout your entire home’s structure.
According to Angi, nationwide estimates for termite repair costs range from $1,000 to over $10,000.
How Termite Damage Affects Your Home’s Resale Value
The financial impact of termites varies widely, depending on factors such as severity, location, and whether repairs were completed. Below are the biggest ways termite damage influences home value.
1. Lower Appraisal Value
Home appraisers look at overall condition, market comparables, and structural integrity. Confirmed termite damage—even if repaired—can reduce appraised value because:
- Structural components have been compromised
- The home may be considered a higher-risk investment
- Repairs may not restore the original value if the structural timber was replaced
- Local comps without termite history will be valued higher
Even minor termite damage can lower the value by several percentage points. Severe, unrepaired damage can reduce the home’s value significantly more.
2. Reduced Buyer Confidence
Buyers are cautious, especially when it comes to homes older than 50 years in NEPA. Termite damage raises immediate concerns, such as:
- “What else is hiding behind the walls?”
- “Was the damage fully repaired, or just patched?”
- “Will termites return?”
While some buyers are willing to negotiate for lower rates, many buyers will walk away entirely.
3. Required Repair Credits or Price Reductions
When termite damage appears on an inspection report, buyers commonly request seller concessions, such as repair credits, treatment guarantees, reinspections, or a lower sale price. Depending on the extent of damage, these reductions can range from minor adjustments to substantial price drops.
4. Mandatory Treatment & Repairs Before Closing
Mortgage lenders, especially FHA, VA, and USDA loans, require homes to be free of wood-destroying insects.
If termites are found, sellers are typically required to:
- Pay for a full treatment
- Repair or replace all damaged components
- Provide documentation of clearance
Failure to do so can delay or disqualify financing.
How Common Is Termite Damage in NEPA?
While termites are more common in the south, they are still very common in Northeast Pennsylvania–particularly older homes with moisture issues and homes surrounded by trees.
Typical hotspots where termite inspectors look around your home include:
- Sill plates
- Support beams
- Rim joists
- Basement perimeter walls
- Deck posts
- Garages
- Additions with old framing
Because termite activity can remain hidden for years, most homeowners don’t discover the problem until they prepare to sell.
The Importance of Wood-Destroying Organisms (WDOs) Inspections
A standard home inspection will note visible damage, but often doesn’t include or seek out damage from a wood-destroying organism (WDO). In addition to termites, several pests can cause widespread wood damage, including carpenter ants and wood-boring beetles.
In Pennsylvania, buyers using FHA, VA, or USDA loans often need a WDO inspection for mortgage approval.
A clean WDO report is a significant selling advantage, especially if done with a pre-listing inspection. A report showing damage or activity must be addressed before the deal can move forward.
What Happens If Termite Damage Is Found on the Inspection Report?
Termite damage rarely kills a deal outright, but it does shift negotiations and responsibilities for both the seller and the buyer. Once damage is identified, both sides must decide how to move forward based on the extent of the issue and what the contract allows.
Sellers generally have three choices:
- Make repairs before closing — Treat active termites, fix structural components, and provide documentation. Helps preserve the home’s value but requires upfront cost and potential delays.
- Offer a repair credit — Provide a financial concession instead of completing repairs. Keeps the deal moving but reduces the seller’s net proceeds.
- Sell the home as-is — Often chosen for older or inherited properties. Avoids repair obligations but typically results in lower offers and a smaller buyer pool.
Buyers also have several options once termite activity or structural damage is confirmed:
- Request full treatment and repair from the seller
- Negotiate a lower purchase price
- Ask for a transferable termite warranty
- Walk away if their inspection contingency allows it
A qualified home inspector can help both parties understand whether the damage is minor, moderate, or structurally significant, ensuring buyers make informed decisions and sellers know what to expect during negotiations.
FAQs
Can a home fail inspection because of termite damage in NEPA?
Severe structural damage or active infestations can stop a sale until treatment and repairs are completed.
Do sellers in PA have to disclose termite damage?
Yes. Pennsylvania requires disclosure of known infestations, treatments, and structural damage on the Seller’s Property Disclosure Form.
Will buyers still make offers on a home with termite history?
Absolutely—if the issue was treated and repaired. Documentation is key.
Does homeowner’s insurance cover termite damage?
No. Termite damage is considered preventable maintenance and is not covered under standard policies.
How long after treatment can I sell my home?
Immediately, provided you have a clearance letter, and there is no active infestation.
Do termite warranties transfer to the new owner?
Many do. Transferable warranties increase buyer confidence and can improve resale value.