Termite offer

[layer181]

I made an offer on a property in a very good area which was originally listed for $480.000 before the owners discovered that the property had termite damage. Since then they have dropped the price by $50.000. After closer inspection it seems the termites have been eradicated and are no longer active. The land value of the area seems to be between $350.000 and $380.000. My unconditional offer of $355.000 was knocked back.My strategy was to fix white ant damage. Rent place out for 6 months and have bank value property and cash in on extra equity. Before making another offer I was wondering if insurance and bank will create problems in the future. Any advice appreciated.
Regards Layer181
P.S. Cannot ascertain full extent of termite damage because owners (understandably) dont want further probing.

 

[DaveP]

Is it layer or lawyer?

I bought a IP abt 18mnths ago that had termite damage.

Being an engineer I inspected the roof and floor framing and discovered that the old house was mostly bui;t from hardwood. So the damage was in the pine mouldings and pine ceiling battens.

Bought the prop for $85K
Spent $20K
Rent it out for $155/wk
Bank valued it at $260K the other day for some refinancing.

Yes it is a risk but if you do a bit of due diligence and maybe seek some advice from an expert they can lessen the risk. I am not aware of anyone who could provide you with guaranteed advice on extent of damage.

The damage did not affect the finance or insurance

DP

 

[RPI]

Is the house? on a slab on the ground,? Can you get into the wall cavities, is it constructed from pine or hardwood? With queenslanders up on stumps it's not normally too much of a problem push the affected wall(s) over and start again (pine Vj's), but if it's a brick veneer made out of softwood it's a diferent story. I have bouight a queenslander with $50 worth of termite damage (1 architrave) but enough to scare off other buyers. Good luck
Darryl

 

[layer181]

DaveP its layer not lawyer as i lay timber floors for a living.
Thanks for the reply on insurance and bank.

RPI- The house is on a concrete slab, white ants have come through cracks. Bottom half of house is brick veneer, second storey is cladded both with soft wood studs.
I will try to investigate extent of damage myself before making another offer. Both you and DaveP seem to have done alright out of it. Thanks for the help.
Regards Layer181

 

[sbe]

Hi.

Just make sure you find out all you can.

If can be like RPI's experience, or a nightmare.

Like anything, proper DD will make sure it's better for you

Good Luck.

Simon

 

[layer181]

Owners have gone on holidays.Guess have to wait till next year.Thanks guys will keep you posted