Inspection missed HUGE defect-- what now?

Question

I closed on my 3rd property this march with the strategy of a live in BRRR.  When I was walking through it prior to closing I saw evidence of termite from the past: old bait traps around the house and minor damage spots in the basement rafters and in the corner of the living room.

So, I speak to my realtor about it and he orders a termite inspection. I sent him picture of the damage i had found so he could point the inspector in the right direction. The report came back with some very small parts in the floor and garage but didn't include the spots I have mentioned. We got the spots treated for $750 (seller paid for it), so i thought everything was good.

2 months into the rehab I found severe termite damage while tearing out drywall in the spot i had sent my realtor a picture of and it the downstairs bathroom on a load bearing wall which will probably end up costing me thousands.

I should've done better due diligence, however, I am not an inspector and thought I was covering myself by getting it inspected/treated prior to buying. My question is where do I go from here? Try to hold the inspector responsible? the seller for probably knowing it had damage? Or just bite my tongue and learn from the mistake?

I'd really appreciate thoughts from everyone- thanks!

Dawn Brenengen · Answer

@Ryan Swigart Yep....pretty much anything can be fixed, and surprise expenses shouldn't be too much of a surprise as we should all be accounting for leaving money available for errors and the unexpected.  Glad it worked out ok for you!

Ryan Swigart · Answer

Hey everyone, Thanks for the feedback. UPDATE: replace the boards myself, thankfully none on load bearing walls. Cashed out refinanced and one of my best investments yet. Sometimes just need to sit back process and not over react.

Dave G. · Answer

@Ryan Swigart I think this is just a case of bad luck for you. Not sure what else you could have done if you agreed that the termite inspection addressed what you could physically see. If you thought the inspection came up short somehow and now you think the inspection deficiency could be linked to the damage found, well maybe you could try pursuing that. But I think you're probably SOL. Sorry.

Aaron K. · Answer

@Ryan Swigart at least in my area a termite inspector is held to a much higher standard than a traditional inspector, so I'd check your local regulations to see if this is also the case where you are, however if the severe damage was almost entirely behind the drywall nobody would have found it because people don't tear down walls to check for termites.

Dawn Brenengen · Answer

@Ryan Swigart The termite inspector should have been the most knowledgeable in this scenario, but like Aaron said, if it was behind a wall, there is no way to have known without tearing down the wall

Inspection missed HUGE defect-- what now?

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