Termite damage deal?

[Clayton Moss]

Hey BP, I am looking at a duplex 3/2 both sides, with a 1/1 separate garage apt. It's in a historic neighborhood close to riverfront. It's a great location! 

The property has been on market for a year and has come down from 675k to 525k, where it was under contract a couple weeks ago. The buyer backed out due to inspection showing active termites. Both subterranean and dry wood. 

The seller relisted the property at 400k last night. I'm thinking about offering way lower than that since arv would be around 500-550.

Has anybody dealt with termite problems in the past? The tent and fume would cost 14k, my worries are with the damage repairs..

Any help/ info would be great! This seller is EXTREMELY motivated after all of this.

Thanks everybody!