Termite damage - what to do?

So I purchased a house for $435,000 subject to P&B inspection and finance approval.

Attended the inspection today with the P&B guys. Building is structurally sound, only minor things found. No biggie. But the pest guy said that there is active termite damage to one corner of the dining room, the area which is lower to the ground (the land slopes slightly). He said it'd cost $3250 to chemically treat the termites, guaranteed for 7 years. Then I have to pay $250 annually for them to come out to inspect the area.

If I pay for the chemical treatment, how long does it last? Will the termites come back?

I'm still keen on the house despite the termites, so the obvious thing would be to renegotiate the price down. By how much though?

Any help appreciated.
I used to hear the word termite and think it was the end of the world with houses, but seems like just about every second property has them now. Apparently treatments for it are good these days also (I'm no expect, just going by what I've read and been told). The property I recently purchased was subject to pest inspection, and no termites were found in the building at all, but some active areas were found in the garden. Was told it'd cost about $3K to treat them and put a chemical barrier up around the house and then $385 a year to check it. Was told it lasts about eight years, although recommended to re-do every five years. As this was in a termite prone area, I was planning to do this anyhow (with or without termites being found) to protect it so I saw this as an opportunity to save myself some money. I negotiated with the vendor to pay for the immediate treatment and I would pay for the annual inspections. Seeing as your one has damage, I'd definately be negotiating on the price.
I thought this was asking what to do with termite damage - if the previous owners of my old house are anything to go by, when you find termite damage in moulded wood like architraves, you should fill it with either mortar or polyfiller making sure to leave as many fingermarks as possible and then paint over it :D

Those barrier treatments aren't foolproof btw. I had one done and just over a year later I had termites back in. The house is a cheapie though so it works out better to get a $250 spot treatment whenever someone (probably my tenants, but considering one is blind without glasses and one is blind with or without them I think I need to inspect regularly myself) finds the little buggers rather than the full barrier. A more expensive house, just keep up that barrier.

Termites really can't eat your entire house in a month like the ads say.
He said it'd cost $3250 to chemically treat the termites, guaranteed for 7 years. Then I have to pay $250 annually for them to come out to inspect the area.

So you have got $3250 + 7 x $250 = $5,000
The you double it for contingencies and the inconvenience = $10K

The you have the stigma attached to the house, because when you come to sell next, then purchasers will find old termite damage.

There is no fixed number but if they did not give me at least $10K or more like $20K off, then I'd walk away.

There are plenty of houses without termites, to be bought. ;)
Don't be so sure,the ones out west will eat all your rafters in three months :eek:
They are huge,they make so much noise eating you can hear them crunching.
Damn, those are big termites :eek:

Round these parts if you can hear it crunching, its mice not termites :p