'WHAT TERMITE COMPANIES DON'T WANT YOU TO KNOW'
By Michael S. Long
I am writing this article for submission to G.A.R. magazine to further educate the real estate industry and the lobbyists which represent them. Having spoken to hundreds of agents through educational seminars I have heard the horror stories of requiring your clients to purchase a termite treatment in order to obtain a termite letter.
First, let me tell you that what fuels this monster. It’s the simple fact that most, if not all, termite inspectors are paid on 100% commission. They are salesmen! Enough said. Right! I believe that lobbyists for the real estate industry need to address this issue as should the G.A.R.
Termite companies are earning millions of dollars every year because they have a monopoly on a document that is issued by them exclusively and required by all lending institutions and, overseen by the department of agriculture [Georgia] in order to sell a home.
The real estate industry’s hands are tied. This leaves very little integrity in the game. There are no rules to play by. Basically, termite companies know 'we've got the letter you want and this house must be treated by us before you can have the letter'.
A fairly regular mode of operation is the 'throw you a bone' method in which you, the agent, are graciously given a clear letter just to make you treat the next four. This keeps you, the agent, ordering termite letters [treatments] from the termite company. Since some companies offer ''free' termite letters, and we all know that nothing is free, realize that this may be a 'throw you a bone' company.
There needs to be a specific criterion of when a structure really needs to be treated so that everyone can evaluate and realize the real threat of termite infestations. This will create fairness and integrity and break this monopoly. Unfortunately, for years the real estate industry has been at the mercy of the only industry issuing these letters and this hardly seems fair.
This practice has gotten so out of hand that I have seen 'termite inspectors' require treatment on homes just two years old. These inspectors use the “I can’t see or inspect behind the brick so this home must be treated'' tactic. But remember, these termite inspectors are salesmen, so any excuse will do, and some can be very creative.
Recently I saved three agents thousands of dollars on four properties in which this tactic was being used. [two of the properties were under 3 years old] please realize that this is the standard not the exception. Why is this? It’s because the termite company will simply refuse to issue the clearance letter, as will the next, and the next, and the next, meanwhile the closing date is fast approaching and the realtor and the homeowner refuse to miss it.
Termite inspectors will also use the 'liability' tactic. Let's look at this for a moment. Inspectors will tell you about the tremendous liability placed upon the termite company with the issuance of termite letters.
Here are the facts, 'and what termite companies don't want you to know'. The Georgia structural pest control commission, rule [620-6-.03] states 'if a structure has not been treated with a full minimum adequate treatment within the past one [1] year and termites are found infesting in a structure within 90 days from the date of issuance of the termite letter, the termite company is required to treat the structure with a complete minimum standard treatment according to the rules of the Georgia structural pest control commission'. This can be a rare event at best. Did you know this? It is not common knowledge to most homeowners, thus, minimizing the termite companies’ real liability of a full treatment cost for a termite letter price. So don't let 'liability' alone be the reason your client accepts treatment in order to get a termite letter.
Also, it is important to realize that the only time a homeowner will even know that termites are infested in a structure is in the spring when termites have swarmed inside their home. If termites swarm from a structure to the outside through a crack in exterior brick etc. The homeowner still would not know that they have termites. So with the exception of March, April, May & June there again is no real liability to the termite company.
For example, a termite letter issued in October will hold a termite company liable until December. Since termites don't swarm in these months there is no real liability to the company. So as you can see, even if the homeowner knew that they could receive a free termite treatment they don't know that they have termites until, if and when, the termites swarm inside their home which will almost always be 90 days after the letter is issued.
Let's face it nobody wants to purchase a home only to find out later that termites are destroying their house. Everybody loses, the homeowner, selling agent and the termite company that issued a clean letter on the structure.
If your termite company cannot apply these simple rules when inspecting a home for you, or issue you a clear letter due to the lack of the same, find another company because. They obviously do not have your best interest at heart.
Even though they may be really nice to you or bring doughnuts to your meetings, etc. Their ulterior motives will be clear. There are hundreds of reputable companies in the yellow pages. If this pattern re-emerges make it clear to the inspector [salesman] that you fully expect him to follow these guidelines if he wants to keep your business [and he does because he will eventually find termites on some of your listings]. Your education on this matter will save your client money which will make them appreciate your services and get you more referrals! Right!
Let's discuss when a structure really does need to be treated for termites even when termites cannot be found. This determination should be based on honest and sound reasoning, but remember that a termite inspector's job is to sell a termite treatment so any reason will do.
Termite pressure or the population of termites around any given structure having cellulose, along with the compounding problems pertaining to that structure must be given serious consideration when deciding whether to issue a clear termite letter or require treatment. Hollow block, stucco, brick, rock or finished basement homes are virtually uninspectable. Well shaded lots, stumps, large bushes, and sprinkler systems will create a very favorable environment for termite colonies to thrive around the foundation of a structure. These conducive conditions and the uninspectability of some structures can create a recipe for disaster that cannot be detected by the termite company because termites are secretive by their very nature.
Brick homes that have been drilled 'old school' or drilled every other brick mortar or more really need to be treated as this dates the last liquid treatment. Also, termiticides usually last five to seven years, some more some less. So if the structure is a 13 year old brick, block or stucco home it probably has termites somewhere on the structure and should be treated due to the uninspectability of the structure and the years between treatments. Also, if there is no drill pattern in the brick or contiguous slabs it needs to be treated.
Finally, let’s talk about baits. There is a lot of confusion about baits to consumers. There are generally two kinds of baits, chitin inhibitors and stomach poisons.
Chitin inhibitor baits do not allow termites to molt, killing them mostly after they engage with the colony and pass this bait to other termites by regurgitation [tropholaxis] and leaving a chemical pheremone [scent to food source for other termites to continue this killing process] .
The other kind of bait is a stomach poison, the termite eats the bait and it dies. Homes with stomach poison baits that have not been treated with a real liquid treatment should be treated since stomach poison does not engage with colony population, which is the whole idea behind baits!
Chitin inhibitor baits [exterra, sentricon] can be used as stand alone pretreats on brand new homes in Georgia where as stomach poisons cannot!!! Engagement is the name of the game!
Remember, always get a listing letter because if a termite company requires treatment you have time to get a second opinion, but if you need that letter for a close tomorrow at noon you will probably be treating that structure, but you probably have figured that one out by now, unless you are a new agent!
