People DO tend to be put off, and, yes, the damage can be horrific - but if you've got a good pest inspector and building inspector and/or know what you are doing, it can also be a very good negotiating tool!
We used to be concerned about white ants when first starting out, but now completely ignore them. The clauses that you typically see in Purchase Contracts are worded such that they are "walk away" clauses, not argy bargy clauses. That is, if you come up against a savvy Vendor, he'll likely tell you "So what....are you proceeding or pulling out...your choice". By this stage you are a fair way down the sales track, having done all of your research, selected the property, concluded negotiating the price and just working through the clauses until going unconditional. She'd be a brave Purchaser to tell the Vendor to get stuffed and walk away.....especially given some typical numbers. If you are buying a 400 or 500K prop, how much are you talking about in terms of damage ?? maybe a 1 or 2K...is that worth chucking the whole contract down the toilet and starting all over....dunno....how much is your time worth ??
Of course, if the block value of the property is far more, then of course the white ants become even more insignificant.
We bought a rundown shed complex 2 years ago without a white ant clause, and discovered massive white ant damage, 2 humungous nests and a whole bunch more. Got a guy in, sprayed the lot, still wouldn't give a guarantee, as they never do, and repaired the damage. Total bill came to 0.1% of the price. Not worth arguing about, especially if you like the dirt and don't want to lose the deal.
I've seen some great deals go down the toilet when the purchaser was horrified at $ 600 worth of damage and a few active white ants....oh well.
