What Section 1 and 2 items in a termite report mean

What has seemed to become the “new normal” in Sacramento Real Estate is very tight inventory, seller equity and many, very competitive offers. It’s up to the seller and the real estate professional to decide what the best offer is when selling. Where we see the pressure in the WDO world is surrounding the termite treatments and more importantly the section one repairs.

Section one refers to an active infestation of wood destroying organisms (ie. termites, wood boring beetles and/ or dry rot). The term section one is defined by the structural pest control board (governed by the state of CA). It is the responsibility of the WDO Inspector (branch 3 license) to identify all visible and accessible section one, two (conducive conditions) and three (further inspection) items when completing a complete report.

Many companies that primarily deal with a branch 2 license (general pest control- ants, spiders, rodents, etc) will offer a “limited inspection” where they only identify termites or section 1 or 2 items in a specific area of a home. Typically, the real estate world, the lender will require an original, complete report. They are typically not going to fund loans that have section 1 or 3 items on them. The reason being a section 3 item means that there are still questions that need to be answered in a specific area or areas.

It’s really important, in our opinion, that real estate professionals have a good relationship with their inspector(s) to ensure that questions are answered and/ or handled in a professional prompt manner. We cannot stress it enough especially in highly competitive markets, like Sacramento, and time is of the essence!

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