Termites Found Before Closing? Jonesboro Seller Options

You accepted an offer, the buyer's inspection is done, and then the termite report comes back with a problem. It is a stomach-dropping moment, but it is also a common one, and it is almost always fixable without losing the sale.

We are NEA Realtor Group (Trenton Hoggard and Tim Ray), and we have helped Jonesboro sellers through termite findings many times. If you are still planning your sale, our home selling toolkit covers the full process. This post is about what to do when the termite report is the thing standing between you and closing day.

Why the Termite Letter Matters So Much in Jonesboro

In Arkansas, plan on a termite letter for almost any financed home purchase. VA and USDA loans require one, and FHA and conventional lenders in this market ask for it too. The main exceptions are an in-house bank loan, where a local bank keeps the loan on its own books and sets its own rules, and a cash purchase.

That means a termite finding is not just a repair item. For most buyers, it is a lender requirement that has to be cleared before the loan can close.

Timing makes it feel more urgent right now. Freddie Mac reported the 30-year fixed rate averaging 7.40% as of October 8, 2026, up from 6.30% a year ago. Buyers watching their monthly payment at those rates are less willing to absorb surprise costs, so a clean, documented fix matters.

The market is still moving homes. Redfin reports a Jonesboro median sale price of $235,000 for the three months ending August 2026, with homes selling at 97.7% of list price and a median of 55 days on the market. A deal under contract is worth protecting.

What the Report Actually Tells You

A wood destroying insect report is a visual inspection of the accessible parts of the home. The inspector looks at areas like the crawl space, attic, garage, and exterior wood for termites, other wood-destroying insects, and decay.

Before you react, find out which of these three things the report is saying. They are very different problems.

• Active activity. Live insects or fresh evidence were found. This usually calls for treatment before the lender will accept a clear letter.
• Evidence of past activity. There are signs of an earlier infestation, such as old tunnels or damaged wood, with no live activity found. This can often be documented with proof of prior treatment.
• Conducive conditions. Wood-to-soil contact, moisture, or debris that could invite termites. These are usually fixed with simple maintenance.

Read the written report, not just the summary line. Ask the inspector or the pest control company to show you where the finding is, how large the area is, and whether any damage was noted.

Also remember that the report documents what was visible. Hidden or inaccessible areas may not be covered, which is one reason to take any recommended follow-up seriously.

Your Options When Termites Are Found

Most Jonesboro sellers end up choosing between a handful of paths. The right one depends on what was found, the buyer's loan type, and how much time is left before closing.

Option 1: Treat before closing

This is the most common path. You hire a licensed pest control company to treat the home, and they issue the clearance letter the lender needs.

The benefit is simplicity. The buyer sees the problem handled, the lender gets its paperwork, and the closing date usually holds. Our post on what a termite letter means for Jonesboro buyers shows how the buyer's side reads that letter.

Option 2: Offer a credit and let the buyer handle it

Some buyers would rather choose their own treatment company and warranty. In that case you can offer a seller credit toward the treatment.

Be careful here. If the buyer is financing, the lender still needs the clearance letter before closing, so a credit alone does not remove the requirement. Ask the buyer's lender how they want it handled before you agree to this route.

Option 3: Repair the damage, not just the insects

Treatment stops activity. It does not rebuild damaged wood. If the report notes structural damage, the buyer, the lender, and the appraiser may want to see it repaired by a qualified contractor.

Lenders and appraisers can require repairs when damage affects the structure, so expect that conversation. Get a written scope and a price before you negotiate so you are working with real numbers.

Option 4: Adjust the price

If you do not want to manage repairs, a price reduction can be cleaner than a credit. The buyer then owns the fix.

The same financing caveat applies. A lower price does not replace a lender's clearance requirement, so this works best when the issue is small or the buyer is paying cash.

Option 5: Know what happens if the deal falls apart

If you and the buyer cannot agree, the buyer may have the right to cancel under the terms of your contract, depending on timing. This is the outcome you are working to avoid, and it is why a fast, documented response matters.

If a sale does fall through, the termite finding does not disappear. It usually has to be disclosed to the next buyer, so treating it properly now protects your next contract too.

Read the Treatment Contract Before You Sign

Arkansas regulates structural pest control. According to the published Arkansas Pest Control Regulations, licensed operators must provide a written contract for termite work, and that contract must guarantee the work for at least one year. The rules also say a letter of clearance for a real estate transaction must use the Board-adopted inspection report form and be accompanied by a signed contract.

The same regulations address letters of clearance on buildings that are already under a termite contract. In that situation, a new contract in the buyer's name may be needed. Ask the pest control company how that works for your home before you commit, and read the contract itself instead of relying on a summary.

Questions worth asking before you sign:

• Is the company licensed in Arkansas for termite and structural pest work?
• What treatment method is being used, and what does the contract cover?
• How long is the guarantee, and what does it exclude?
• Will the buyer receive their own contract, and what happens at transfer?
• How soon can treatment happen, and how soon will the clearance letter be issued?

We do not recommend specific companies, and you should feel free to get more than one quote. Your agent can share what the buyer's lender and side have asked for so you know what the letter needs to say.

Keep the Closing Date on Track

The biggest risk is not the termites. It is lost time. Here is the order we usually follow.

1. Get the full written report and share it with your agent the same day.
2. Call a licensed pest control company and get the treatment scheduled right away.
3. Tell the buyer's agent what you are doing and when it will be done.
4. If damage was noted, get a contractor to look at it and give you a written scope.
5. Send the clearance letter and treatment contract to the buyer's side and the lender as soon as you have them.
6. Ask the lender to confirm in writing that the paperwork satisfies their requirement.

If the schedule is tight, ask about an extension in writing instead of letting the date slip quietly. A short, agreed extension is far better than a missed closing.

Disclosure and What to Tell the Next Buyer

If you know about termite activity, past treatment, or damage, it belongs in your disclosures. Hiding it is the one move that can turn a manageable repair into a legal problem. Our post on what Jonesboro sellers must disclose before listing covers the basics.

Keep the paperwork together: the inspection report, treatment records, the contract, the clearance letter, and any repair invoices. Handing a buyer a clean folder builds trust, and it can shorten the back and forth when a question comes up.

If You Have Not Listed Yet

If you are reading this before your home is on the market, you have the best option available: find out first. A termite inspection or a pre-listing inspection before you list means no surprises in the middle of a contract. In a market where comps may pull from the last 90 to 180 days because volume is lower, a clean report also helps your price hold up.

When we list a home, NEA Realtor Group sends a dedicated direct mail campaign for every listing, and we would rather market a home with its paperwork already in order than explain a problem after an offer comes in. It is a simple way to keep control of your timeline.

Quick Checklist for Sellers

• Read the full report and identify whether it shows active, past, or conducive findings.
• Get treatment scheduled with a licensed Arkansas pest control company.
• Confirm with the buyer's lender what documentation they need.
• Get a written scope and price for any damage repair.
• Decide between treatment, credit, repair, or price adjustment with your agent.
• Disclose what you know and keep every document.

Termites are a hurdle, not a verdict on your home. Sellers who respond quickly and put everything in writing usually keep the deal together. If you want more on how repair negotiations tend to go, read how Jonesboro sellers should handle repair requests.

Frequently Asked Questions

Q: Do I have to treat for termites before selling my Jonesboro home?

Not always, but if the buyer is financing, the lender will almost certainly require a clear termite letter. If the buyer is paying cash or using an in-house bank loan, the requirements may differ, so confirm with the buyer's side.

Q: Who pays for termite treatment in a Jonesboro home sale?

It is negotiable and spelled out in your contract. Many sellers pay for treatment so the lender's requirement is met, but a credit or price change is possible when the buyer prefers to handle it.

Q: Can termites kill a home sale?

They can if the issue is ignored or the paperwork drags, but most termite findings are resolved with treatment and a clearance letter. Quick action and clear communication are what protect the sale.

For perspective, NEA Realtor Group has earned 5-star reviews and is the #1 real estate team in the Northeast Arkansas MLS by production.