When purchasing a house there are several inspections the buyer will have during the inspection period of the contract. Depending on what part of the country you live in , your mortgage lender may require that you have a clean WDO inspection before your loan will be approved. So what is a WDO inspection?
A WDO inspection is an inspection for Wood Destroying Organisms on a home or structure. When purchasing a home it is always recommended to have a WDO inspection so you don’t have unexpected costs and repairs after closing.
When most people hear the words Wood Destroying Organisms (WDO) they think of termites. WDO is any insect or organism that can destroy the wood or foundation of your house like termites, powder post beetles and wood decaying fungi.
Why a Wood Destroying Organisms (WDO) Inspection is Important
Wood Destroying Organisms (WDO) inspection, commonly called a termite inspection, are usually required from a mortgage lender before a loan is approved in the purchase of your dream house. FHA and VA backed loans are very clear on having a clean WDO report. Convention mortgage loans usually don’t require a WDO inspection but it is recommend that all new home buyers have the inspection.
FHA and VA backed loans have a separate addendum that specifically talks about termite inspections, WDO’s, and repairs. This is a big deal for the FHA, VA and HUD backed mortgage lenders. If the inspection fails, in other words there are wood destroying insects or organisms, the area must be treated and repaired or the loan won’t go through.
These inspections are especially important in places like my home state of Florida because of the large amounts of rain, high humidity and moisture. Around here it’s not a question of if, but when will you have termites. Many households have an annual or semiannual termite protection and service agreement.
A WDO inspection may have prevented some termite damage to estimated 600,000 homes in the U.S. each year. Homeowners spend an estimated $5 billion annually to control termites and repair termite damage.
Who does the inspection?
Most local pest control companies will have certified technicians that can perform a WDO inspection. Talk to your real estate agent, mortgage lender, insurance company or friends to get a recommendation.
Typically the inspector can do the inspection within a period of a week depending on the home sales market at the time. The actual inspection takes 30 minutes to a couple hours depending on the size of the home. The form the inspectors fill out are state generated and uniform.
This is an example of a completed Florida report from 20/20 Pest Intervention with pictures of the damage. It is helpful to have the pictures with the report so there isn’t any question about what needs to be repaired.
One of the items the inspector checks for is prior preventive treatment or signs of infestation. They will record on the form how they came to that conclusion. Some indications include drilled and plugged 1/2″ holes 10″-12″ apart in concrete driveways in front of the garage and porches front and back. Also there may be Termite traps” which are bait stations placed in or above the ground.
Types of Wood Destroying Organisms (WDO)
Termites– Lets start off with the most notorious and feared wood destroyer, the termite. There are several types of termites including subterranean, drywood, and dampwood. Here is a link to Orkin pest control that explains each type in detail.
If you are a homeowner and have a termite bond or service policy keep good records so you can pass them on to a perspective home buyer. If you did have a termite infestation and your house was successfully treated, keep these records is a must. If there are signs of an old infestation but not much damage you can prove it was treated and the termites were killed.
During early spring, subterranean termite nests produce swarms of sexually mature winged adults that fly off to start new colonies. The presence of these winged adults inside a home is one warning sign of an existing termite problem.
Powderpost Beetles– Powderpost beetles are wood-boring beetles that primarily impact unfinished, unpainted and/or unsealed wood that has low moisture content. When it comes to causing structural damage they are only second to termites. Here is a YouTube link to a video from Inspecting Charlotte showing the beetles and amount of damage they can do.
Wood Decay Fungi- Fungus is a plant that lacks chlorophyll. Unable to manufacture its own food, it feeds off of cells in the wood. The fungus secretes enzymes that break down the wood into usable food that will significantly reduce the strength of the wood.
Fungus occurs generally when the moisture content of wood exceeds 20 to 30 percent, coupled with the optimal temperatures (32˚ – 90˚ F), an adequate supply of oxygen and a suitable source of energy and nutrients. Here is an excellent article from Times Up Termite
What Happens if WDO’s are Discovered?
There are several options if wood destroying insects or organisms are discovered:
- The buyer can walk away from the home purchase
- The seller can repair and treat the damage up to the predetermined amount
- If the repair and treatment is over the predetermined amount, renegotiate the amount and who pays what and when
- If it’s not required by the mortgage lender, buyer can accept without any or some repairs and treatment
Some damage may be very minor like wood rot on window sills or door jams like in the pictures of the link of the Florida report above. This is common in older houses and may cost less than $100 to repair. A trusted handyman can typically accomplish these type repairs in a short amount of time and before closing. Ask your realtor or friends if they can recommend a qualified handyman.
If WDO’s were discovered and repairs had to made the inspector will have to come back to do a re-inspection and fill out a new form with a clean WDO. A word of advice, don’t share a failed WDO report with your lender, only the clean one. They may misinterpret the results and make you jump through more hurdles and get another company involved .
Related Questions
How much does an inspection cost? I’ve seen inspections cost anywhere from $50 – $175. The $50 company charges a re-inspection fee, the higher priced ones don’t. Just like everything else, you get what you pay for.
Who usually pays for the WDO inspection? Because the mortgage lender requires the inspection, the buyer typically pays. Keep in mind everything is negotiable in a real estate contract.
Is mold considered a WDO? No-Mold does not destroy wood, therefore WDO inspectors are typically not trained or licensed to identify surface molds and types.
Are carpenter bees and ants considered a WDO? On the state of Florida form, carpenter bees and ants are not reported as a wood destroying organisms. They dig and tunnel into the wood to make habitats not continually feed on wood. If present they should be taken care of though, they are still pests and cause damage.
WDO inspector recommends a treatment policy, do I need one? Depending on where you live and if termites, beetles and fungi are an issue a policy will give you peace of mind. Some insurance companies give discounts if you have a policy. If the home has been treated before you can possibly find a sticker on the water heater or kitchen cabinet door under the sink.