Selling a House with Termite Damage in Los Angeles, CA: How Hard Is It?

Termites in LA are about as common as traffic on the 405. You’ve got them, and you’re stressed about selling. But half the homes in Southern California have dealt with these little wood munchers at some point.

The difference between a smooth sale and a problematic sale isn’t the termites themselves; it’s how you handle them. In this blog, let’s talk about the best strategies when you’re trying to sell a house with termite damage, because you’ve got more options than you think.

Can You Sell a House with Termites in Los Angeles, CA?

Yes, you can totally sell your house with termites. California doesn’t ban you from selling a home with pest problems. The catch is that you have to tell buyers about it. Full disclosure is the law here.

Most purchase agreements already include a termite inspection anyway, so trying to hide damage would blow up in your face during escrow. Buyers in LA expect termite issues. Real estate agents deal with them constantly, and lenders have processes for them. Many people buy homes with termite reports attached.

Some buyers will walk away, sure. But others, especially cash buyers and investors, see it as just another part of the deal. Eazy House Sale can help make the process smooth and hassle-free.

Types of Termite Damage Common in LA Properties

LA deals with two main termite types, and they attack your house in completely different ways.

Subterranean Termites

These guys live underground in massive colonies and build mud tubes up your foundation to get to the wood. They love moisture, so they go after crawl spaces, areas near plumbing leaks, and any place where water collects.

The damage first affects floor joists and support beams. You might not even see it on the surface because they eat wood from the inside out. Everything looks fine until you tap it and realize it’s hollow.

Drywood Termites

Drywood termites don’t work underground and just fly straight into your attic or window frames. You’ll spot tiny piles of pellets that look like sawdust below little holes in the wood.

They prefer dry wood (hence the name), so your attic beams and trim are prime targets. Treatment usually means tenting your whole house and fumigating, which is a pain but gets the job done.

How Do Termite Infestations Affect Home Value (Active Termite Infestations vs. Past Damage)

Termite damage will lower your home’s value, but how much depends on what kind of problem you’re dealing with. Usually, active infestations scare most buyers more than old damage that’s already been treated and repaired.

Of course, if you’ve got termites actively munching away right now, buyers are already thinking about how much they’re going to spend fixing it. They’re thinking about treatment costs, hidden damage, and whether these bugs will come back after closing. Most will either demand you fix it first or ask for a fat price cut.

Past damage that’s been treated and repaired tells a different story. Buyers still want proof, like treatment receipts, repair invoices, and maybe a clearance letter. But once they see it’s handled, they relax. It becomes more of a “well, that happened” moment instead of a dealbreaker.

The value hit varies. Minor cosmetic stuff might cost you $3,000 to $5,000 off your asking price. Significant structural damage requiring beam replacements can cost $20,000 or more. And in neighborhoods where termites are super common, buyers expect it and don’t panic as much.

Penalties for Failing to Disclose Termite Damage

Don’t hide termite damage. California’s Transfer Disclosure Statement requires you to detail any known defects, and termites are one of them.

If you’re not honest in your disclosure and the buyer finds out after they’ve bought the house, they can sue you for repair costs, medical treatment, additional damage, and their legal fees. Some have even gotten their contracts canceled mid-escrow when hidden damage surfaced.

California courts really hate this kind of thing. Sellers have lost big lawsuits because they “forgot” to mention termites or claimed they had no clue about apparent damage. Even if you genuinely didn’t know, you could still be liable if a basic inspection would’ve caught it.

Just be honest. It’s way cheaper than a lawsuit six months after you’ve already moved and spent your sale money.

Steps to Sell a House with Termite Damage in Los Angeles, CA

You’ve got termites, and you need to sell. That means you can’t just list the house and hope nobody notices. Here are the steps you should take.

Step 1: Get a Professional Termite Inspection

Get the inspection done yourself before you list. If you wait for buyers to order one, you’re walking into negotiations blind while they’re holding all the cards and freaking out about what they found.

When a Pest Inspection Is Required

A pest inspection is always required, so don’t even try to avoid it. Your purchase agreement will require it, and lenders definitely want one. Even if nobody technically demands it, buyers are still going to ask for it anyway.

You’re not getting around this, so you might as well control the timing and know what’s in that report before anyone else sees it.

What Inspectors Look For During a Termite Inspection

The inspector’s going to poke around everywhere. That includes your attic, crawl space, garage, and all the spots you probably haven’t looked at in years. They’re checking for live termites and those creepy mud tubes running up your walls. They’ll also look for wood that sounds hollow when you knock on it and for any damp or rotting areas.

The report tells you what’s actively infested versus what’s old damage and lays out exactly what needs fixing. It’s not fun to read, but at least you’ll know what you’re working with before buyers start making demands.

Step 2: Evaluate Your Termite Treatment Options

Once you see the inspection report, you’ve got to decide what to do about it. Ignoring the problem isn’t going to work when lenders won’t approve loans on houses with active termites munching away.

Dealing with Active Termite Problems

If you’ve got termites eating your house right now, they need to go before you close. Most buyers can’t get financing until you treat active infestations anyway, so you’re pretty much stuck dealing with this whether you like it or not.

Get it done upfront, or at least get a solid quote so you can talk real numbers with buyers instead of vague promises.

Fumigation and Tenting

This is where they wrap your entire house in that big striped tent you’ve probably seen around LA and pump it full of gas that kills everything. It’s a whole production.

You clear out for a few days, bag up all your food and medications, take your pets to a friend’s place, and let them do their thing.

This costs anywhere from $1,200 to $2,500, depending on how big your place is. Sounds like a lot, but it’s basically the nuclear option that kills drywood termites in every corner of your house, even the spots you didn’t know they were hiding.

Localized Treatments

If the problem’s just in one spot or you’re dealing with subterranean termites that haven’t spread everywhere, you might get away with targeted treatment instead of the whole tenting process. They inject chemicals into the ground around your foundation or directly into problem areas. Sometimes, they set up bait stations that termites carry back to their colony.

It’s way less hassle than tenting and usually runs $500 to $1,500, but it only works if the infestation hasn’t gone wild throughout your whole house.

Cost Considerations for Termite Treatment

Tenting runs $1,200 to $3,000 for most LA homes, depending on square footage, while spot treatments are cheaper but might need follow-ups if the problem spreads.

That’s just killing the bugs, though. Actually fixing the damage they caused is a separate expense that can range from a few hundred bucks for some trim boards to five grand or more if you need to replace structural beams.

Get quotes for both treatment and repairs so you know the full picture before you price your house or start negotiating with buyers.

Step 3: Decide Whether to Repair Before You Sell Your Home

So you’ve got the inspection, you know what treatment costs, and now comes the big question: do you actually fix everything before listing, or do you sell it as-is and let the buyer deal with it?

Benefits of Completing Repairs

Fixing termite damage before you list opens up your buyer pool in a big way. Buyers who need traditional financing can actually get approved because lenders won’t freak out about structural issues.

You can also ask for a higher price since you’re handing them a house that’s ready to move into, not a project they have to manage right after closing.

Plus, you control the repair quality and costs instead of giving buyers a credit and hoping they don’t go bargain-hunting for the cheapest contractor.

When you complete repairs, you get documentation proving everything’s fixed properly. The whole transaction becomes smoother and gives buyers way less bargaining power with you during negotiations.

Selling As-Is with Termite Damage

Selling as-is means you don’t want the hassle of coordinating treatments and repairs. You can list your house right now instead of waiting weeks or months for work to get done. You’ll probably sell for less, but you also avoid fronting thousands of dollars for repairs you might not recoup anyway.

This route works best if:

• You need to sell fast
• Don’t have cash sitting around for repairs
• If the damage is so extensive that fixing everything would cost more than the value it adds.

Cash buyers and investors love as-is deals because they’ve got their own contractors, and they’re planning renovations anyway. Your termite damage is just another line item on their rehab budget.

Step 4: Price Your Home Appropriately

Pricing a termite-damaged house is not easy because you can’t just look at comps and call it a day. You need to factor in what buyers are going to spend to fix your problem, plus the mental discount they’ll apply just because the word “termite” freaks people out.

You should look at recent sales of similar homes in your area that were in good condition, then subtract your estimated repair costs, plus maybe another 5% to 10% for the hassle factor. If treatment and repairs cost $8,000, you might need to come down $10,000 to $12,000 from what you’d get for a termite-free house.

Your real estate agent should pull comps and help you nail down a realistic number, but don’t get greedy. Overpricing a house with known issues just means it sits on the market forever, while buyers who are willing to deal with termites go buy someone else’s property that’s priced right.

Price it fairly from the start and you’ll get offers faster. This gives you leverage to negotiate and maybe not give up as much as you thought you’d have to.

Step 5: Market Your Home Effectively

Marketing a house with termite issues takes a different approach than selling a pristine property. You can’t just slap some pretty photos online and hope buyers overlook the pest report sitting in the disclosures.

Be Transparent About Termite History

Lead with honesty in your listing and conversations with potential buyers. Mention the termite issue upfront, along with what you’ve already done about it, whether that’s treatment, repairs, or getting quotes for the work.

Buyers appreciate sellers who don’t make them look for bad news, and being upfront actually builds trust that makes negotiations go smoother. If you try to bury the termite info and buyers find out later during their inspection, they’ll assume you’re hiding worse problems, and the whole deal can fall apart fast.

Highlight Recent Termite Treatment and Repairs

If you’ve already handled the termite problem, shout it from the rooftops. Put it right in your listing that the house was treated in 2024, repairs were completed by a licensed contractor, and you’ve got all the documentation to prove it.

Buyers love turnkey situations where someone else has already dealt with the headache. Frame your termite treatment as a selling point instead of something to be embarrassed about.

Make sure your agent mentions it during showings. Include copies of treatment receipts and repair invoices with your disclosure packet so buyers can see exactly what was done.

Step 6: Negotiate Repairs and Credits with Buyers

Once offers start coming in, you’re going to have to negotiate who pays for what. Buyers will have opinions about your termite situation, and you need to be ready to talk money without getting defensive or giving away the farm.

Most buyers ask for one of three things:

• You complete all repairs before closing
• You give them a credit at closing to handle repairs themselves
• You drop your price to account for the issue.

Each option has trade-offs, and what you agree to depends on how desperate you are to sell versus how much cash you want to walk away with.

If a buyer wants you to fix everything, get written estimates from licensed contractors and negotiate based on actual costs, not the inflated numbers their uncle who “knows construction” threw out. If they want a credit instead, offer something reasonable based on real repair quotes, not worst-case-scenario pricing.

And if they want a straight price reduction, make sure the amount actually reflects the damage and doesn’t just become free money for them to pocket.

Stay firm on what’s fair, but also read the room. If you’ve only got one serious buyer and they’re asking for reasonable concessions, fighting over a few thousand bucks might cost you the whole sale.

Is It Hard to Sell a House That Has Had Termites in Los Angeles, CA?

Selling a house that has had termite damage in Los Angeles, CA, is harder than selling a pristine house, but it’s not impossible, like some people think.

The real challenge isn’t the termite damage itself; it’s managing buyer expectations and finding the right buyer who won’t lose their mind over a pest report.

Traditional buyers using FHA or VA loans are going to be your toughest crowd because their lenders have strict rules about structural damage and active infestations. You’ll probably need to complete repairs before these buyers can close. You have to front the money and deal with contractors while your house sits in escrow.

Conventional loan buyers have more flexibility, but they’ll still want either repairs done or a big enough credit to cover the work themselves. First-time buyers tend to panic more about termites than experienced homeowners who’ve seen it all before.

The positive side is that LA has enough termite-damaged homes changing hands that you’re not selling some rare disaster property. Agents know how to handle these deals, and title companies have seen it a million times. Many buyers understand that termites are just part of homeownership in Southern California.

Your success really comes down to pricing it right and being honest from the start. If you overprice a termite-damaged house, it’ll rot on the market. Price it fairly and disclose everything upfront, and you’ll find buyers who are ready to deal. We buy Los Angeles, CA, homes in nearby cities and handle all the details, even with termite damage.

Impact of Termite Damage on Financing and Appraisals

Termite damage can really jeopardize your sale. This happens when lenders and appraisers get involved and start making demands that kill deals before they even get to closing.

Most lenders order an appraisal to make sure the house is worth what the buyer’s paying. Meanwhile, appraisers are required to flag any visible damage or safety issues they spot.

If your termite damage is obvious or shows up in the pest inspection report, the appraiser notes it, and the lender decides whether they’ll approve the loan as-is or require repairs first.

FHA and VA loans are super strict about this stuff. If there’s an active termite infestation or structural damage, these lenders almost always require treatment and repairs before they’ll fund the loan. Your buyer can’t close until you fix it, period.

Conventional loans give lenders more wiggle room to decide on a case-by-case basis, but many still want structural issues addressed because they don’t want to finance a house that might fall apart. Some conventional lenders will approve the loan if you give the buyer a big enough repair credit, but others won’t budge.

The appraisal itself can also come in low if the appraiser factors in termite damage when calculating value. If the appraisal comes in under the purchase price, the buyer either needs to bring more cash to closing or you need to drop your price. If you don’t, the whole deal falls through.

This is why pricing right from the beginning matters so much. If you’re realistic about value given the termite issues, the appraisal is more likely to support your sale price, and you avoid this nightmare scenario altogether.

Alternative Route: Selling to Cash Buyers

If dealing with lender requirements and picky buyers sounds exhausting, cash buyers might be your answer. These are usually investors or companies that buy houses in any condition, and termite damage doesn’t scare them off.

Cash buyers don’t need financing, which means you don’t need appraisals or lender-mandated repairs. They’ve seen way worse than termites, and they’re planning to renovate anyway, so your pest report is just information to them. You’ll get lower offers (maybe 10% to 20% below market value), but you close fast, with zero repair demands or buyer contingencies to stress about. A cash-for-houses company in California and nearby cities can make the process fast and hassle-free.

Frequently Asked Questions

Can I sell my house with active termites in Los Angeles?

Yes, but you have to disclose them, and most buyers with traditional financing will require you to treat the infestation before closing. Cash buyers often take houses with active termites as-is.

Do I have to fix termite damage before selling?

Not legally, but it depends on your buyer. FHA and VA loans usually require repairs for structural damage. Conventional loans are more flexible. You can also sell as-is to investors or cash buyers who don’t need financing.

How much does termite damage reduce home value in LA?

It varies based on severity. Minor cosmetic damage might cost you $3,000 to $5,000. Meanwhile, major structural issues can knock off $20,000 or more. Active infestations hurt value more than past damage that’s been properly treated.

What happens if I don’t disclose termite damage?

Buyers can sue you after closing for repair costs, treatment expenses, and legal fees. California courts take disclosure violations seriously, and you could end up paying way more than if you’d just been honest up front.

How long does it take to sell a house with termite damage?

With traditional buyers, expect a normal timeline plus extra weeks for inspections, treatment, and repairs if needed. Cash buyers can close in 1 to 2 weeks regardless of termite issues.

Will termite damage show up in a home inspection?

Usually, yes, termite damage will show up in a home inspection. Most inspectors specifically look for termite damage and conducive conditions. Plus, lenders typically require a separate pest inspection anyway, so the damage will surface during the transaction.

Should I get termite treatment before listing my house?

It depends on your situation. Treating active infestations before listing opens up your buyer pool and can help you get a better price. But if you’re selling as-is or need to close quickly, you don’t need to do treatment. Just let the buyer handle it.

Can buyers back out if they find termite damage?

Yes, if they have an inspection contingency in the purchase agreement. Most contracts include this, which gives buyers the right to cancel or renegotiate if they find issues they don’t want to deal with.

How much does termite tenting cost in Los Angeles?

Fumigation and tenting typically run $1,200 to $3,000 for most LA homes, depending on square footage. Localized treatments are cheaper at $500 to $1,500 but only work for contained problems.

Are termite inspections required by law in California?

Not by state law, but most purchase agreements and lenders require them. It’s basically standard practice in LA real estate transactions, so you’re not getting around it.

What’s the difference between a termite inspection and a home inspection?

A home inspection covers the overall condition of the property. A termite inspection (also called a pest inspection or Section 1 report) specifically looks for wood-destroying organisms and the damage they cause. You usually need both.

Can I negotiate who pays for termite repairs?

Yes. Everything’s negotiable in real estate. You can offer to handle repairs yourself, give the buyer a credit at closing, or adjust your price. What you agree to depends on market conditions and how motivated each side is to close the deal.

Key Takeaways: Selling a House with Termite Damage in Los Angeles, CA

You can sell a house with termite damage in LA once you stop panicking and make a solid plan. Get that pest inspection done yourself and be honest about the issues from day one. You also need to price your home to reflect the damage. Traditional buyers need repairs and lender approvals, while cash buyers will take your house as-is for a lower price but close fast without the hassle.

If you’re tired of worrying about financing falling through because of termite damage, Eazy House Sale is here to help. We buy houses in any condition throughout Los Angeles, termites and all. Call us at (855) 915-1382 or fill out the form below for a no-obligation cash offer and close on your timeline without fixing a single thing.