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Old 03-29-2010, 04:06 PM
 
342 posts, read 538,838 times
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Exclamation Does a termite bond / insurance add value to your home at sale?

When it comes time to sell my house in the near future, will having a termite bond make my home more valuable?

I'm contemplating cutting out the termite bond this year. It is $175/yr now and it came with my brand new house a few years ago. Just not sure if its worth it if nobody cares when they buy my house.
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Old 03-29-2010, 04:28 PM
 
449 posts, read 503,237 times
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Termite bonds can be a plus, but in all honesty, I've never seen a deal made or lost strictly because of whether or not there was one on the property. It comes down to this. If a buyer wants one, they'll get it on their own or ask you to buy the first year for them. Don't get me wrong, a bond is definitely worth the money, but I doubt not having one will affect the sale of it.

The buyer will be more concerned as to whether or not there is any evidence of previous/current infestation, but that will be found out when a termite letter is provided.
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Old 03-29-2010, 04:53 PM
Status: "Which witch is which?" (set 13 days ago)
 
Location: In the land of cotton
4,267 posts, read 2,135,323 times
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I wouldn't buy a house without a valid "termite damage repair bond" as it is quite expensive to get one after the fact. Some sellers claim they have a "termite bond" but what they have is a guarantee from the issuer that the termite infestation will be eliminated - not that the resulting damage will be repaired at no cost to the owner.
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Old 03-29-2010, 05:29 PM
 
342 posts, read 538,838 times
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Quote:
Originally Posted by Dirt Grinder View Post
I wouldn't buy a house without a valid "termite damage repair bond" as it is quite expensive to get one after the fact. Some sellers claim they have a "termite bond" but what they have is a guarantee from the issuer that the termite infestation will be eliminated - not that the resulting damage will be repaired at no cost to the owner.
This is what I have, and I think its quite expensive to start one from scratch. The problem is I don't think buyers will really value this add on enough for me to continue the expense.

I am just having a hard time justifying $175 for 'peace of mind'. I hate insurance.
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Old 03-29-2010, 06:16 PM
 
Location: Madison, AL
1,967 posts, read 1,793,765 times
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Actually, it really depends on the type of bond you have. There are some that just cover the cost of treatment of any infestations, but do not cover any damage to the property as a result of termites. These are basically useless in my opinion. If you have a repair/replacement bond, I would continue my service because those are quite costly to start up and they do have a good deal of value to buyers these days. A repair/replacement bond will cover all repairs required due to termite damage, and treatment of the infestation. We live in an area with a HUGE problem with termites. I would not look at it from a resale point of view, I would look at it as protecting your investment. Check and see what kind of bond you have.


Termites can do ALOT of damage, sometimes damage that cannot be readily seen. Bonds give peace of mind to homebuyers that, should damage occur, they are covered. I sold a few houses last year that had some pretty extensive termite damage but both sellers were covered with repair bonds, so all the damage was repaired satisfactorily and the buyers were happy since they had a bond conveying with the property.
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Old 07-02-2010, 07:26 AM
 
1 posts, read 7,226 times
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company won't honor retreatment guarantee
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Old 07-02-2010, 07:41 AM
 
Location: Huntsville, Alabama
339 posts, read 752,113 times
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I would not go without termite bond in the south any more than I'd go without anti-freeze in a Montana winter. In Florida I had a termite bond, and sure enough when I sold my house the buyers inspector found some damage that the bond took care of. Here I happily write a $125 every year.
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Old 07-02-2010, 08:55 AM
 
Location: Alabama!
4,999 posts, read 10,594,115 times
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The bank or mortgage company may require an active termite bond as a condition of financing.
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Old 07-02-2010, 11:43 AM
 
Location: Madison, AL
1,967 posts, read 1,793,765 times
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Lenders do not require termite bonds, but they will require a clean termite letter regardless of the type of loan. Even the most regulated of goverment loans (FHA, VA, USDA, ect) do not require termite bonds on the property.
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Old 07-02-2010, 11:54 AM
 
24,774 posts, read 26,159,449 times
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Quote:
Originally Posted by E Limestone Dude View Post
When it comes time to sell my house in the near future, will having a termite bond make my home more valuable?

I'm contemplating cutting out the termite bond this year. It is $175/yr now and it came with my brand new house a few years ago. Just not sure if its worth it if nobody cares when they buy my house.
Penny wise and pound foolish. I would under no circumstance stop paying the termite bond on my house.
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