We are buying a 10yo home we really like on a conventional loan in Huntsville, AL. When we won the realtor told us “someone offered higher but they liked your financing better” which was a red flag to me so I looked at rules on conventional vs VA/FHA loans. One thing I noticed was a Wood Inspection Report being waved for us so I immediately contacted local companies, found their current provider, and ordered an inspection. It came back with previous subterranean termites in two places (an exterior corner and another exterior wall) that were found ~6wks before the home listed. It also states the termite company does not have record of repairs being performed but they do have an active termite bond (which the company won’t transfer to me).
I did search first and I get termites happen, usually are minor, and it’s up to me to buy it anyways or not. But now I’m of course paranoid they found major termite damage and put their home up for sale, picked us assuming we wouldn’t pay for a non-required inspection, and it’s going to be a major repair. I asked our realtor to reach out and see what they say. She also said we could pull a CLUE (spelling?) and see if they hit their homeowners insurance. If we buy the home I assume our homeowners insurance would not cover any repairs since it’s pre-existing? Is the termite company refusing to transfer a termite bond a red flag? Any other advice or thoughts?