Who Pays for Pest Inspection When Buying a House?

A pest inspection is a specialized evaluation to identify the presence of pests and any damage they may have caused to a property’s structure. This involves a professional examining the interior and exterior, including attics, basements, and crawl spaces, for signs of infestations such as termites, rodents, and other wood-destroying organisms. A pest inspection is distinct from a general home inspection, which primarily focuses on overall structural integrity and major systems. It can uncover hidden issues that might lead to significant repair costs or health hazards, ultimately influencing the property’s value and safety.

Common Scenarios for Payment

The responsibility for paying for a pest inspection is often negotiated between the buyer and the seller. While there isn’t a universal rule, the buyer traditionally assumes this cost. Buyers often pay to select a reputable and unbiased inspector, gaining leverage if pest issues are discovered. This allows negotiation for repairs, a price reduction, or even withdrawal from the purchase if problems are substantial. Sellers may opt to pay to make their property more appealing or to accelerate the sale. A clean pest inspection report can serve as a selling point, demonstrating the home’s condition and preventing delays. In some cases, the cost might be split, or the seller may offer a credit at closing. The average cost for a pest inspection typically ranges from $50 to $200, with termite inspections specifically costing between $75 and $150.

Factors Determining Payment Responsibility

Several elements influence who covers the cost of a pest inspection. Market conditions play a significant role; in a buyer’s market, sellers might be more inclined to pay to attract offers. In contrast, a seller’s market may see buyers more willing to bear the cost to make their offer more competitive. Local customs and regional practices also dictate payment norms, as some areas have established traditions or local regulations.

FHA Loan Requirements

Certain loan types, such as FHA and VA loans, have specific requirements that can affect payment responsibility. For FHA loans, a pest inspection is generally required only if the FHA appraiser observes signs of an active infestation, or if mandated by state or local regulations. The buyer typically pays unless negotiated otherwise.

VA Loan Requirements

For VA loans, a pest inspection for wood-destroying insects is often required in states with moderate to heavy termite probability. While historically sellers were responsible, regulations loosened in June 2022, allowing VA buyers to pay for their own pest inspections. Payment responsibility can still vary by state and negotiation.

The Role of the Purchase Agreement

The real estate purchase agreement, also known as the sales contract, formalizes who pays for the pest inspection. This legal document outlines the terms and conditions of the home sale, including contingencies related to inspections.

A pest inspection contingency clause allows the buyer to arrange for an inspection and receive a report on the property’s pest condition. If the inspection reveals significant pest issues or damage, the contingency clause typically grants the buyer the right to negotiate repairs, a price reduction, or contract termination. The agreement specifies financial accountability for the inspection and any subsequent treatments or repairs. It codifies these negotiation points, ensuring clarity and legal enforceability.