Everything You Need to Know About Termite Bonds
At Mark Spain Real Estate, we have you covered on all things residential real estate. When selling your home, many homeowners do not automatically think about getting termite bonds. We have provided you with the most up to date information on termite bonds so you can stay in the know and make the best real estate decisions! Learn more about Mark Spain Real Estate.
What is a Termite Bond?
A termite bond is a contract between the termite company and the homeowner. Entering a termite bond with a pest control company allows the homeowner to receive a certain amount of inspections in addition to treatments to protect your home for a fee. Termite bonds are essentially a type of insurance, and the bond will act as an insurance policy. Overall, the terms of the bond will vary, but in general, they work to protect your home from infestations.
Do I Need a Termite Bond?
Although termite bonds are not required to sell your home, they are highly encouraged! Termite bonds deliver peace of mind knowing that if or when you have an infestation, the pest control company is readily available to help during your contract term. The bond guarantees that the pest control company will make sure no new infestations arise as well.
Termite bonds are especially useful for buying or selling a home. If a home inspector finds an infestation or likelihood of one, homebuyers will often only agree to purchase the home if the seller takes out a termite bond first. In addition, lenders may not provide a mortgage to at-risk homes without a termite bond. Furthermore, specific mortgages like FHA and VA require pest inspections, so these bonds can help homebuyers qualify for lower-cost loans.
Additionally, these bonds are wise to purchase if you live in a climate where termites thrive. Climates such as the southern United States are susceptible to termite infestations for example.
When Do I Need to Purchase One?
It is optimal to purchase the bond once you start thinking about selling your home, or as soon as your home hits the market. Don’t wait to purchase the bond until a home inspector finds out that you have an infestation! Waiting to purchase a bond can delay the home selling process. Also, if you recently found an infestation or worried about one returning, it’s best practice to go ahead and purchase the bond as well. If purchasing a termite bond as a home seller, it is important that it is transferable. This way, the bond can be transferred to the new homeowner upon closing.
How Much Do Termite Bonds Cost?
Prices differentiate based on how long the contract lasts, types of services included, and additional factors. The average price ranges from $700 to $1000 for the initial service of a residential home. Yearly fees can usually range from $300 to $400. There are times where more costs are involved for more active infestations. These contracts are usually renewed annually as well. Although the cost of a termite bond might throw some homeowners off, it is important to remember that the price is just a small fraction of termite treatment of an infestation.
At Mark Spain Real Estate, we provide an unparalleled client experience in addition to partnering with best vendors in the industry. Mark Spain Real Estate is partnered with Arrow Exterminators to provide our clients with the best pest control services and experience. Arrow Exterminators can provide a multitude of services, including termite pest control for our clients. Rest assured that working with us, you will be in good hands throughout the entire buying or selling process.
Looking to buy or sell a home? Contact Mark Spain Real Estate today and start packing!