When Is a Termite Report Clear?

Whenever I speak with people about real estate they always ask me how it is dealing with today's real estate market. I tell them that we are selling houses but that everything is harder and more work than in past years. The newest wrinkle is the termite report.

Most lenders require that a termite report be done and that a clear report be issued before they will approve/fund a loan. It used to be that the report needed to show "no visible evidence of infestation from wood destroying insects was observed". If evidence was observed, then proof of a recent treatment needed to be provided or a treatment needed to be done and then a clear report provided. Now lenders particularly for FHA loans are requiring that if any "conditions conducive to infestation" are listed on the termite report they must be corrected and a clear report issued before the loan can be approved/funded. The conditions may include excessive moisture, wood to earth contact, and dry rot. It is best to ask for these repairs as part of the Buyer's Inspection Notice and Seller's Response. However, sometimes the lender is not notifying the parties until right before closing that these items need to be fixed which results in a scramble to get them corrected and often times a delay of closing.

A/C Servicing - Who to Believe

SRP has a program where you can schedule a 16 point service check-up for your air-conditioning system for $29.95. You call them up and they send out one of their contractors. We decided to do this since it would less expensive than having the service done by the company that installed our a/c system. They came out today and gave us a whole list of things that they recommend be fixed up to and including replacement of the whole system. We had him give us a written list of what he thought was wrong with the system. This is a system that is currently working. So, it is difficult to know if what they are recommending is really needed or not. So, here are our next steps:

1) Look up the company who did the service today at the Arizona Registrar of Contractors site. I can see that there are two resolved complaints and that the company has been in business since 2002. I strongly recommend that you look-up any contractor on this site for any type of work before signing a contract with them.

To look-up contractor by license number (license number is usually in ads and on invoices as ROC#)
To look-up contractor by name

2) Someone else from his company will come out in a few days to give us estimates on replacing the whole system or just the inside air-handler. The outside unit was replaced several years ago but the inside unit is original to the house. It can be difficult to replace an inside unit only and make it fit with the existing outside unit.

3) After we have this written estimate, then we will have the company that replaced the outside unit come out and review the recommendations and provide an estimate for any work they feel needs to be done.

4) If we feel that it is needed, get an estimate from a third company as well.

5) See what we can do to validate the information provided. For example, he said the inside unit was working harder than it should. We can compare our electric bill to the typical electric bill for a house our size. SRP sent us a year end statement that shows we are paying more than the average amount for a house our size. Is this due to the a/c unit or other factors?

6) Research incentive programs and tax breaks that might help off-set the cost if we replace the unit. We already found one - SRP PowerWise Cool Rebate.

We'll keep you posted on our experiences. If you have any recommendations, please leave a comment.

ASU School of Sustainability

Did you know that Arizona State Univeristy had a School of Sustainability? This school is the first of its kind in the nation and was featured on NBC Nightly News. According to ASU "Sustainability is more than environmental studies; it's the interconnectedness of the Earth with science, politics, economics, people and cultures." Watch video clips highlighting this program and how ASU is preparing students to preserve the future.

Who Should You Call??

If you have started having trouble making your house payments or anticipate having trouble in the near future, you may want to ask for some advice or help. The US Department of Housing and Urban Development has a listing by state of approved housing counselors on their website.

HUD Approved Housing Counseling Agencies for AZ

They also have Tips for Avoiding Foreclosure and a lot of other valuable information. One of the first things listed, which I have heard recommended by others as well, is to call your lender and explain your situation and ask for help. If your lender can't help, you might want to call one of the approved counseling agencies for advice. There are some new government programs to help struggling home owners and the counseling agencies should have current information about the programs.

Tips to Protect Your Home While You Are Away

I just read this tip sheet provided by Liberty Mutual on things to do before you leave home on vacation or a business trip. A few tips include: asking a neighbor to keep an eye out for packages and leaflets left at your door, setting an automatic timer on some lights for the home, and turning off water to your washing machine so there is no danger of a hose bursting and flooding your house. To read the complete list, click on the link below.

Tips To Help You Protect Your Home When Traveling

Postage Rates to Go up May 12

Postage rates are scheduled to go up again on May 12. First class stamps will increase from 41 to 42 cents. You can buy the Forever Stamps now at today's rate and use them after the rates change without having to add a 1 cent stamp. So, is anyone going to buy several years worth of Forever Stamps now to save them money in the long run? The Post Office site indicates that they will have 5 billion Forever Stamps in stock to meet the increased demand before the price increase goes into affect.

To see how the rate increases will affect all types of postage, go to www.usps.com/prices.

Termite Tubes

If you see these mud tubes in your home (often times in the garage) you may have termites. Time to call the bug guy. Of course, you may have recently been treated for the little pests, but didn't clean up the tubes. If so, clean it up as soon as possible. However, if you find tubes and it has been a while since treatment, call the company who did the treatment if you are still under warranty. Treatments are usually warranted to last from one to five years. You will need to check your receipt to find out what type of warranty you have. Otherwise, call that company or another to come out and reinspect.


If you're buying a home and the bug guy finds evidence of termites, smile. It is a good thing. You see, in Arizona pretty much all homes have had termites, have them now or will have them in the future. You're 99% assured of getting a treatment at some time. Why not, get the treatment paid for by the current owner before you move in. That's better than getting the treatment a year or two from now on your dime.

If you do have to have a termite treatment, we recommend that you get more than one bid. Not all companies charge the same price. Additionally, be sure to ask what the warranty will be on the treatment. Sometimes a company will offer more than one alternative for treatment, each with a different warranty, and a different price.