Neither party is automatically on the hook. When you ask who is responsible for a termite inspection, buyer or seller, the honest answer is that the purchase contract decides, and the line is negotiable in almost every deal. Buyers pay more often because the inspection protects their investment, sellers sometimes pay to move the sale along, and VA or FHA financing can shift the arrangement entirely. The inspection itself runs roughly $75 to $325, which is small money against repair bills that routinely reach the thousands.
When the Buyer Pays
Buyers are the more common payer, and the reasoning is practical. Most purchase contracts let a buyer add an inspection contingency, which makes the sale conditional on acceptable results. If the report comes back showing active termites or structural damage, you can ask the seller to treat and repair, negotiate a price reduction, or walk away without losing your earnest money.
Paying for your own inspection also gets you two things a seller-provided report cannot. You pick the inspector, and you control the timing. If you accept a report the seller ordered from their preferred company, you lose some of that independence. For $75 to $325, you get an unbiased look at what you are actually buying.
There is a second reason buyers tend to absorb this cost: once you own the home, termite damage is your problem alone. Standard homeowners insurance does not cover it. Insurers treat infestations as preventable through routine maintenance rather than as the sudden, accidental losses policies are designed for, and most carriers do not even offer a termite endorsement.1U.S. News. Does Homeowners Insurance Cover Termite Damage Any damage you inherit at closing stays with you financially, with no insurance to fall back on. Spending a little before closing is often the only real protection available.
When the Seller Pays
Sellers pay less often, but there are solid reasons to do it. A pre-listing inspection lets you find and fix problems before any buyer is involved. Treatment handled on your own schedule costs less than treatment arranged under a contract deadline, and it keeps you out of a renegotiation that could cost far more than the inspection itself.
Offering a clean report upfront is also a reasonable marketing move. It signals transparency, and in a buyer’s market where sellers are competing for fewer offers, paying for the inspection is a common concession alongside other closing-cost credits.
Sellers with a known pest history have an additional reason to get ahead of the issue. Most states require sellers to disclose known material defects, and past or present termite problems fall into that category. A seller who knows about prior infestations and stays quiet risks a legal claim after closing. Ordering a current inspection and sharing the results is one way to demonstrate good faith and limit that exposure.
VA and FHA Loan Rules
Government-backed financing changes the picture. For VA loans, a wood-destroying insect inspection is required across most of the country. The VA publishes a state-by-state list, and it covers the entire South, much of the Midwest, and large parts of the West. Some states have county-level requirements rather than statewide ones, and a few northern states are excluded.2Department of Veterans Affairs. VA Home Loans – Local Requirements
A 2022 rule change matters here. The VA historically barred veteran borrowers from paying for the termite inspection in states where it was required, which forced the seller or another party to cover it. VA Circular 26-22-11 eliminated that restriction. Veterans can now pay the inspection fee themselves in any state, whether the inspection is required or not.3Department of Veterans Affairs. Veterans Benefits Administration Circular 26-22-11 Many buyers still negotiate for the seller to pay as a closing-cost concession, but the old prohibition is gone.
FHA loans frequently require an inspection as well. The standard NPMA-33 report form is approved for FHA use, and lenders commonly require one when the appraiser notes evidence of wood-destroying pests or when the property sits in a high-risk area.4U.S. Department of Housing and Urban Development. Wood Destroying Insect Inspection Report (NPMA-33) If you are financing with FHA or VA, plan on the inspection being required and budget for it.
What Actually Decides It in Your Deal
Outside loan program requirements, a handful of factors drive who ends up paying:
- The purchase contract. This is where the answer lives. Either party can propose paying, it becomes a negotiation point during offers and counteroffers, and whatever the signed contract says governs.
- Local custom. In some markets the seller traditionally pays, in others the buyer always does. These norms are not legally binding, but they shape expectations.
- Market conditions. In a seller’s market with multiple offers, buyers often volunteer to cover the inspection to make an offer more competitive. In a buyer’s market, sellers more often pick it up.
- Property condition. If the home is older, shows visible wood damage, or sits in a high-termite area, a buyer may insist the seller pay for the inspection and any needed treatment as a condition of the deal.
Custom and market dynamics influence the conversation, but the contract is the final word. If your purchase agreement does not address the termite inspection at all, get that clarified in writing before closing.
What the Inspection Covers, and What It Doesn’t
A wood-destroying insect inspection is a visual examination for termites, carpenter ants, carpenter bees, and wood-boring beetles. A licensed pest control professional checks basements, crawl spaces, attics, and foundation areas for live insects, prior damage, and conditions that invite future problems. The report form used in most transactions is the NPMA-33, which is approved for both FHA and VA purposes.4U.S. Department of Housing and Urban Development. Wood Destroying Insect Inspection Report (NPMA-33)
Know what the report is not. The NPMA-33 reflects the property’s condition on the inspection date only, and it does not guarantee the absence of hidden or future infestations. It also does not cover mold, mildew, or non-insect wood-destroying organisms. For mortgage and property-transfer purposes, the report expires 90 days after the inspection date, so timing matters if your closing gets pushed.
If the Inspection Finds Something
A report showing active infestation or prior damage opens a new round of negotiation, and this is where paying for the inspection pays off. Buyers who discover problems during the inspection period generally take one of three paths: ask the seller to handle treatment and repairs before closing, negotiate a price reduction that covers the cost, or cancel the deal under the inspection contingency. Which path makes sense depends on severity. A localized treatment issue is usually worth negotiating around. Significant structural damage that was not disclosed is often a reason to walk.
Whoever pays the inspection fee, the point of ordering one is the same: catching the problem before you own it. Once the deed is in your name, there is no insurance to call, and the cost of fixing termite damage climbs quickly the longer it goes undetected. A hundred-dollar inspection is the cheapest safeguard available in a transaction where almost everything else costs more.