The short version
- Finding termites before an auction doesn't automatically rule a house out. What matters is whether they're active, how much timber is damaged and what repairs will cost.
- In Victoria there's no cooling-off period at auction, so any termite questions need answers before you bid.
- Victoria's building regulator says termite damage may not be covered by household insurance and strongly recommends an expert termite inspection before buying.
A pest report that mentions termites a week before auction can knock the wind out of you. You've already pictured the kids' rooms and the veggie patch, and now there's a word in the report that sounds like the house is being eaten from the inside.
Sometimes it is. Often the picture is more mixed than that, and you can still make a sensible decision before the hammer falls. Here's how I'd think it through.
Should you still bid on a house with termites?
You can still bid on a house with termites, as long as you know whether the termites are active, how far the damage has spread and roughly what fixing it will cost. If you can't get those three answers before auction day, I'd be very cautious about bidding at all.
Termites are hard to judge from the outside. Victoria's Building and Plumbing Commission explains that termites destroy timber internally and leave only a very thin outer layer, so a skirting board can look fine and be hollow behind the paint. The commission also says termite damage may not be covered by household insurance. If you buy a house with an active problem, the repair bill is likely to be yours.
Remember the auction rules too. Consumer Affairs Victoria says there's no cooling-off period when you buy at auction, and you accept the contract terms on display. There's no "subject to pest inspection" escape after you've won.
What's the difference between active termites and old termite damage?
Active termites are live termites working in the house now, while old termite damage is timber that was eaten in the past by termites that are no longer there. The two lead to very different conversations.
When I'm doing a building and pest inspection, these are the things I want to pin down:
- Are there live termites, fresh mud tubes or soft new damage, or only old, dry workings?
- Which timbers are affected? Damaged skirting boards are a nuisance. Damaged stumps, bearers, wall framing or roof timbers are a much bigger job.
- Is there evidence of a past treatment or a termite management system, and any paperwork for it?
- What's making the house attractive to termites, such as leaks, garden beds against the walls, timber stacked against the house or a poorly ventilated subfloor?
Old damage with a documented treatment can be a fair bit less worrying than it sounds. Active termites in structural timber, with no treatment history, is the version that should make you stop and get proper numbers. Older timber houses on stumps, like the weatherboards you see all over Reservoir and Pascoe Vale, have a lot of timber close to the ground, so the subfloor gets a careful look from me.
A visual inspection can't see inside walls or behind stored goods, so an inspection report isn't a guarantee that every bit of damage has been found. If the report says access was limited, take that seriously.
What should you do in the days before the auction?
The days before the auction are for turning "termites found" into real information you can put a price on. Here's the order I'd work in:
- Call your inspector and go through the findings. Ask plainly whether the activity is live, where it is and what the damage might mean structurally.
- Ask the agent whether the house has been treated before, by whom, and whether there's a warranty or ongoing monitoring in place.
- Get a licensed pest controller to quote on treatment. The Building and Plumbing Commission says treatment may include chemical sprays, reticulation or baiting systems.
- If structural timbers are damaged, get a builder or carpenter to give you a rough idea of repair costs.
- Talk to your conveyancer about the contract before you bid.
Once you have those numbers, you can lower your limit to allow for treatment and repairs, or decide the house isn't for you. Both are reasonable outcomes. The one I'd avoid is bidding to your original limit and hoping it all works out. If you're still deciding when to book, I've also written about getting a building inspection before an auction in Victoria.
Can the vendor just spray the termites before auction?
A vendor spraying termites before auction isn't the same as a proper treatment, and it can make the problem harder to fix. The Building and Plumbing Commission warns against surface spraying or ripping out affected timber, because it may kill a few termites while reducing the chance of an expert treating the main nest. The termites tend to regroup and attack another part of the house.
The commission also notes that colonies can have several nests spread over more than 50 metres. So if you see fresh paint over skirting boards, new patches of plaster or a strong smell of chemicals near damaged timber, ask what happened and ask for the paperwork. Consumer Affairs Victoria lists blisters or bubbles in paintwork as a possible sign of termite activity, which is worth knowing when you're walking through at an open.
If you're buying and want a hand reading what the report says, give me a call. I'm happy to talk through what I found and what I'd want to know before bidding. You can see how an inspection runs on the inspection process page.
Common questions
Can I use termites in the report to negotiate the price?
Before an auction you can make a pre-auction offer that reflects treatment and repair costs, if the seller is taking offers. At the auction itself you negotiate by setting a lower limit. Your conveyancer can advise on the contract side.
Will a building inspection alone pick up termites?
A building inspection looks at the structure and may note obvious damage, but a timber pest inspection is a separate check carried out to a different Australian Standard. For most houses I recommend doing both at the same time.
How often should I get a termite inspection after I buy?
The Building and Plumbing Commission suggests having a pest controller inspect the house every 12 months, especially in high hazard areas.
Sources
- Building and Plumbing Commission - Termites
- Consumer Affairs Victoria - Buying property at auction
- Consumer Affairs Victoria - Inspect properties before you buy
General information only, based on a visual inspection perspective. It is not legal or financial advice, and every property is different. An inspection report is not a guarantee that a property is free of defects.
About Dale
Dale Phelan owns DSP Building Inspections and does every inspection himself. He started out as a carpenter, became a registered builder (Domestic Builder Unlimited, DB-U 61057), and has project-managed, built and developed more than 35 homes around Melbourne. He is still actively building, so his reports explain the likely cause of each defect and how urgent it is. More about Dale