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So after that ramble, what I mean to say is: talk to your inspector. talk to builders. get quotes. find out what costs you would be up for. use the termite damage to your advantage if its not too disastrous and use that as leverage on negotiating a good discount.

My most recent purchase I was in the same predicament (except it hadn't yet been fixed). Had a lengthy discussion with the inspector who was most helpful. The damage was only listed under 'minor' in the building report as it did not have any effect on the structural integrity of the house...