If you’ve been knee deep in a VA backed purchase in Colorado lately, you might have wondered, “What is VA doing?” One day in late June 2025, everyone woke up to find that any loan with a Notice of Value (NOV) issued on or after June 25—and closing on or after July 21—suddenly needed a termite (wood destroying insect) inspection. No visible damage on inspection? It didn’t matter. VA wanted a pest report anyway. It hit Colorado buyers and agents like a bolt from the blue, because up until then, pest inspections weren’t a thing in Colorado for VA deals, like it is in many other areas of the nation.
Then almost as fast as it showed up, VA quietly trimmed that requirement back to only certain counties. Poof—gone from almost everywhere, and now to less than half of counties. Surprisingly removing counties where, in my career, inspectors have found termite. How did they pick those counties? Good question. I certainly know of infestations outside their list, so your best guess is as good as mine.
So, what’s at stake if your county still makes the cut? You won’t get your NOV—the one page summary that tells you VA’s approved loan amount and any must do repairs—unless your pest report rides along before or with your appraisal. In Colorado, the VA staff (or your lender’s VA reviewer) simply won’t sign off on the appraisal without a clean—or conditionally treated—WDO (wood destroying organism) report. No report, no NOV, no closing.
Which leads to the next big question: when should you order your pest inspection? At the time of your general home inspection? Or wait until appraisal?
Here’s what to consider:
Here’s what to consider:
• Early birds (Inspection phase): If you tack on the termite check when you do your home inspection, you roll pest issues right into your inspection resolution period. That means you can negotiate treatment or fixes as part of your initial repair addendum. The downside? You’re out the pest inspection fee up front—before you know if the seller will actually agree to foot the bill for items requested or pest remediation, if needed.
•Late bloomers (Appraisal phase): Skip the early cost and hope for the best—until your appraisal. If the WDO inspector then uncovers live termites or damage, your NOV instantly becomes “conditional,” listing every inch of wood that must be treated or repaired before VA will guarantee your loan. At that point, you’ve lost your inspection leverage and are negotiating under a tighter deadline and if there is no agreement, you Buyer is out inspection costs, pest investigation costs and appraisal costs – that is a lot of money and investment on the Buyer’s behalf to be on the line.
And who really pays for those pest treatments if something is discovered? Under the standard Contract to Buy and Sell (CTBS §6.3: Lender Property Requirements), sellers aren’t obligated to satisfy any Lender Property Requirements. A motivated seller might agree to remediate so they can close, but if they dig in, you may find your buyer and you knee deep in negotiations with the Seller. The Sellers may say, “your lender, your problem” and insist that the Buyer cover the work costs themselves or walk away—knowing that the Buyer has already spent money on inspections and appraisals may give the Sellers the feeling they have the leverage.
On a typical 2,500 sq ft home, termite remediation—including a soil‑barrier spray, bait‑station system, or full‑house tenting plus any necessary wood repairs—runs roughly $2,000 to $7,000 (most jobs land in the $3,000–$5,000 range). By comparison, carpenter‑ant treatment on the same size house usually costs about $250–$500 up front (roughly $0.70–$1.70 per sq ft), with another $600–$3,000 if damaged wood needs replacing, plus optional follow‑up or quarterly maintenance visits at around $40–$70 each—typically with an initial check 2–4 weeks after treatment, a second visit around 60 days as part of monthly inspections, and then seasonal quarterly monitoring to ensure the colony doesn’t return
The bottom line: there’s no one size fits all answer. Buyers have to weigh the peace of mind of early testing against the risk of a sunk cost if the seller won’t cooperate. Whatever timing your Buyer may choose, make sure your contract’s New Loan Availability Deadline gives you enough runway to complete any treatments, secure a clearance letter (or one year warranty) from your exterminator, and clear the NOV. This may require a change of New Loan Availability Deadline and possibly even a change of closing date depending on the availability of remediation, especially if you wait to test until after the inspection and at time of appraisal.
In the end, your best protection is simply being ahead of the curve. If your county’s on VA’s pest inspection list, talk strategy with your Buyer and Lender: figure out timing, costs, negotiation points—and don’t let a surprise termite report derail you Buyers VA transaction.