This is my opinion: I'm not sure I've seen a house past a certain age that didn't have some sort of termite damage? Isn't it really common? Active termites would be a deal breaker, but past damage seems common. I could be totally wrong. The extent of the damage could be worrisome, or poorly repaired (flippers don't necessarily do a bad job repairing) damage could be too. I'd ask the inspector what they thought. They do have a good feel for what's reasonable. It's what you pay them for.

rrah, it wasn't just a routine treatment. The house was infested twice, according to the inspection report and the previous owner's seller disclosure, which the VA inspector dug up. I agree about the honesty issue. What's more, I question the realtor's honesty. He knew about the termite issue and should have told us about this earlier. He's both the seller's realtor and ours, which creates a conflict of interest. He seems to gloss over any problem with the house that we've brought up. I'll ask him questions and he doesn't reply or says he'll find out but never gets back to me.

The flipper was remodeling the house when we put a contract on it. We've repeatedly asked for a list of the things he intends to do and things he has already done, but our realtor ignores our request. It's all very frustrating.

The house appraisal value came back less than the selling price so we could walk away from it now if we choose to. We would hate to do that as we love the house and feel it's perfect for us, but we're worried and frustrated.

I think you know your answer. Walk away. The dishonesty alone would make me wary. Add to that that it appraised for less and it would be a deal breaker to me. As others have said, termites themselves might not be a deal breaker but the fact that the seller and RE agent didn't reveal them is underhanded. If he's unwilling to disclose the past termite infestation and is unwilling to answer questions, that should tell you that he's probably not fixing up the house to last for the long term.

Additionally depending on what state you're in, you might have reason to bring up the the local RE board the agent's dishonesty. Many states have laws where problems need to be disclosed.

Termites are not a deal killer. In the South they are very common. They can be treated and repairs can be made. Conducive conditions can be removed. I've purchased a home where active termites were found upon inspection. It was repaired and treated. We were very sure that the issue was properly addressed. In spite of our best efforts, we owned a home with a termite infestation. It was treated and remedied.

Here is your real problem, your realtor. Representing both sides of the transaction is not illegal as long as it's disclosed and it sounds as if it has been disclosed. But, and this is a big but, most ethical agents will insist upon avoiding a "dual agency" representation. This agent should have told you to go get your own agent to represent you. That was the most ethical course of action. You can't represent both sides to their fullest benefit.

Given that the property did not appraise and there has been a failure to disclose material information, you can cancel the sale and get your deposit back. You need to decide if this property is worth the risk you would be taking. I wouldn't be bothered by the termites. I would have hired my own, different inspector and had them issue a termite certificate. I wouldn't have used this agent in the first place. But, I am an experienced buyer and seller. You aren't. So, I would advise you to walk away. There will always be another, better property. Don't fall in love with property, it's a business deal first and foremost. Keep it business, not emotion. If I were you, I would walk.

To me the question would be: If damage is discovered somewhere in the near future that has to be repaired right away, are you going to be able to pay to fix it? If, after securing a mortgage and paying all the costs associated with moving into a new home you are likely going to be too strapped for cash to handle surprise repairs, then save yourself the stress and walk away. There are other houses out there, and other realtors, too.

I would walk away from the house and the realtor. Your post is the reason we never used a duel agent. They don't really work for you. They work for the seller. Termites are not that common in my neck of the woods, the North East. The flipper may have repaired the damage that you could see. What would bother me was the damage you can't see. I would walk. There will be other houses.

I just posted this on another thread:

"I'm a firm believer in the if it was meant to be.

Many years ago when the ex and I were looking to move to a better school district, we found a beautiful small home on 1/3 of an acre. Loved the house, but after the house had been on the market for about the same amount of time as the one you just lost, we too lost out.

Two weeks later we lucked into a beautiful 1898 victorian house we had driven by many times but felt we could never afford because it was on over 2/3 acre and a much larger house. However the seller had already gotten approval to divide the lot and they wanted to move to FL. The house was almost 1000 square feet larger, in a slightly better location and when divided, it too wound up with 1/3 of an acre. And we got it for the same price as the house we lost out on."

Something better will come along.

Don't walk away. RUN. Fast and far....

Walk. You have no idea of how extensive the damage is. Be glad you found this out before you committed. Also, any flipper who is dishonest may not do a workmanlike job of fixing other things in the house. Now go find another place without these potential problems...

For those who say to walk away from this house and that there's something better out there, know that we have looked for a house for months. This is the perfect house for us as it has everything we want, including a huge kitchen and an open floor plan. And it has been remodeled inside and out. It even has new electric, plumbing, windows, siding, and a new roof. And it has four bedrooms, which is rare here for a 1965 ranch. The price is also reasonable. Most houses that size and in that condition are way out of our price range.

I am concerned about the termites, but I'm less concerned than I was when I posted this. The problem could have been that the house had old wood siding before the renovation and was let go. We will have to be vigilant and do yearly termite inspections.

However, the loan may not be approved due to a driveway that's in poor condition, which the seller refuses to fix. It also came back with a slightly lower appraisal value than the selling price. We are absolutely devastated about this development. If the loan doesn't go through, we will certainly walk away from this realtor and wait a few months before we resume our search.

Thanks for your input and suggestions. I appreciate it.

Seems to me the "housing Gods" are sending you multiple signs. lol Not only termite damage, but a few other negatives to send you walking. I would listen to them. Looking for a house for a few months is not a lot of time imho. We looked for a year to find the house that my husband and I both liked (with a short break from looking) to make a home and raise our family. I'll stick with my words of "there will be other houses".

Get your own realtor, one who is responsive to your questions. Let that person look at the deal and get answers to your questions.

The location of the house is paramount. If it is in the Mississippi Delta area, I would be wary because they have a special termite that is hard to get rid of.

B. Bryant - sounds like you're in the "zone" regarding that specific house. Yeah, it's everything you want, but it's also everything you DON'T want. I had a house that had hidden termite damage that ended up costing me $35,000 to fix. Insurance wouldn't cover it because it was pre-existing; termite company wouldn't cover it because it was pre-existing. When the drywall was removed, EVERY stud in the walls and ceilings of four rooms were completely riddled with termite damage.

I've found your mindset to be typical - you find something you want and fall in love with it, and you're willing to overlook things because of the idea that this is the perfect house for you. It's not. It's a termite-infested trap.

imstillchloecat, I'm sorry for what you went through. That's just awful! Thanks for sharing. But you don't know that this house is a "termite-infested trap." You're basing that opinion off of your own experience, which may not be the same as this house. It definitely is something to be concerned about though.

I do know that there's no such thing as a perfect house. We saw major problems with every house we looked at--mainly foundation, wiring, and roof problems.

We currently live in a massive 125-year-old Victorian, which we've owned for 22 years--it's the house in the my profile photo. It has problems too. No termites though. Ha, ha! They aren't too common in this area.

We know a lot about renovation as we've renovated houses. Hopefully, should some problem come up, we'll be able to repair it or at least do some of the repairs our self.

OK. Good luck!