When you purchase a new home a wood destroying insect inspection should always be included. Even in cooler climates such as Blaine they are still important. The state of Minnesota has just as many wood destroying insects as most other states. In fact, according to industry experts Minnesota has heavy to moderate termite activity, so why isn’t every home inspected?
The answer to this question is complicated, but it starts with HUD. HUD is the agency that handles mortgages and real estate matters for the federal government. In a recent bulletin sent to appraisers, banks, realtors and the like. The agency spelled out their position on termite inspections prior to the sale of a home. The agency stated that termite inspections were to continue if they were “customary” in the state where the inspection is taking place. Not knowing how to define customary, most realtors, appraisers, banks and mortgage companies naturally thought, Minnesota is considered a cold weather climate so therefore termite inspections are no longer needed.
In 2009 there was a study focused around finding out what percentage of homes inspected in the year prior to the HUD statement had “evidence” (live or not) of wood destroying insects. Over a thousand homes were used in the study and over 40% of the homes had some type of wood destroying insect evidence.
The outcome was even more astonishing than the study. HUD now knows that many homes in Minnesota are not being inspected for wood destroying insects prior to sale because of the way their bulletin is worded. To date HUD refuses to clarify the statement to stop this unfair practice. In the end what this study means is that the only time a home is being inspected for wood destroying insects in Minnesota is under the following circumstances:
1. The buyer requests it.
2. The mortgage company requests it.
3. Or the buyer has an experienced agent who guides them through the buying process.
Other than the aforementioned circumstances a buyer, especially a first-time buyer would have no idea that their new home has termites or other wood destroying insects. Why would they?
If an inspection is done and a wood destroying insect is found shouldn’t it get treated? Look at it this way; if a doctor told you that you had an over 40% chance of having a heart attack, would you change your lifestyle? The answer hopefully is yes.
What the industry does wonder though is; why wouldn’t everyone involved want to know about termites BEFORE the home is sold?
