Termites on a Home Inspection in Indiana: What the WDI Report Means
Termites are found all over Indiana, and a note about them on a report sounds worse than it usually is. Most infestations are treatable for well under a couple thousand dollars. What matters is whether there's active activity, whether there's real damage, and who pays to treat and fix it.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. Before real estate I earned a construction engineering management degree from Purdue and spent about ten years designing custom homes and running their construction in Hamilton County. I'm not a home inspector, electrician, plumber or engineer, and this isn't a substitute for one. It's how I explain these findings to my own clients. Sources are linked as you go.
Short answer: eastern subterranean termites are common across Indiana. Evidence on a WDI report means the house needs a licensed pest control company to treat it and someone to check the wood. Treatment is routine; damage is what can get expensive. It's rarely a reason to walk away unless the framing is badly eaten.
- Typical cost to fix
- Treatment about $263 to $1,033 (average $621); damage repair about $600 to $3,000, more if structural.
- Who to call
- A pest control company licensed by the Office of Indiana State Chemist for the treatment. A builder, carpenter or structural engineer for any damage.
- Deal-breaker?
- Usually not. Active termites plus significant structural damage deserves a closer look before you commit.
Cost source: HomeAdvisor termite treatment cost guide, national figures, updated June 2026
- 01What does a termite or WDI report say, and what does it mean?
- 02Are termites common in Indiana?
- 03Do FHA, VA or conventional loans require a termite inspection in Indiana?
- 04Is it termites, carpenter ants or just wood rot?
- 05How are termites treated, and what does it cost?
- 06How serious is termite damage? Should I walk away?
- 07Should I ask the seller to treat for termites?
- 08I'm selling. Do I have to disclose termites, and should I treat first?
- 09Who should do the inspection and treatment? Can I DIY it?
What does a termite or WDI report say, and what does it mean?
A WDI (wood-destroying insect) inspection is separate from the general home inspection. The form most companies use is the NPMA-33, and the National Pest Management Association's guidelines say it must be used for HUD and VA loans and is typically used for conventional sales too (NPMA-33 guidelines). It covers termites, carpenter ants, carpenter bees and reinfesting wood-boring beetles.
The heart of the form is Section II. You'll see one of two boxes checked:
- "No visible evidence of wood destroying insects was observed." That's a clean report. It only covers what the inspector could see that day.
- "Visible evidence of wood destroying insects was observed." This box gets checked for any evidence, regardless of how old it is. Then the inspector notes whether it was live insects, dead insects or shelter tubes, and whether there's visible damage.
Two things trip buyers up. First, "visible evidence" can be old tubes from a house that was treated years ago. Second, a recommendation to treat can appear even with no live termites seen, when there's evidence and no paperwork showing a past treatment (NPMA). That's why the seller's treatment records matter so much.
The form also lists areas the inspector couldn't see: finished basement walls, stored boxes, a crawl space with no access, siding that runs to the ground. Read that section. It tells you where a problem could hide.
Are termites common in Indiana?
Yes. A Purdue-led survey collected termites from 45 Indiana counties and found the eastern subterranean termite (Reticulitermes flavipes) made up 90% of the samples. The authors called it "by far the most commonly collected termite species throughout the state" (Wang et al., Purdue, 2009).
Subterranean termites live in the soil and need moisture. They eat wood that touches soil or that they can reach by building mud shelter tubes over a foundation. Purdue Extension notes the tubes are generally less than 1/4 inch wide, and wider tubes suggest a bigger problem (Purdue Extension E-4). Leaks can also let them live in a house without soil contact.
The first sign most homeowners see is a swarm: winged termites coming out indoors in spring. Purdue says to tell them from flying ants this way: termite swarmers have a straight body and four equal-length wings that are long for the body; ants have a pinched waist and unequal wings (E-4).
Do FHA, VA or conventional loans require a termite inspection in Indiana?
| Loan | Termite inspection required? | Source |
|---|---|---|
| VA | Yes, everywhere in Indiana. VA lists Indiana among the states where wood-destroying insect information is required for the entire state. | VA Local Requirements (updated July 11, 2025); VA Lenders Handbook ch. 12, Topic 33 |
| FHA | On an existing home, the lender has to confirm the house is free of wood-destroying insects. If the appraisal is made subject to a pest inspection, the lender must get the inspection and proof of any treatment. | HUD Handbook 4000.1 (last revised Aug. 12, 2026), II.A.3.a.ii(Q) |
| Conventional | No federal rule. Up to your lender and your purchase agreement. | |
| Cash | Up to you. I'd still get one. |
On VA loans, VA changed its rules in June 2022 so the buyer is allowed to pay for the termite report when one is required; sellers often still cover it in the negotiation (Veterans United). Lender overlays vary, so confirm the requirement with your loan officer before you write the offer. I'd order the WDI inspection during the inspection period either way, so any finding is part of your response to the seller and not a surprise from the lender later.
Is it termites, carpenter ants or just wood rot?
Inspectors probe wood with a screwdriver, and soft wood can come from three different things. They're handled differently:
| Subterranean termites | Carpenter ants | Wood rot (fungus) | |
|---|---|---|---|
| What you see | Mud tubes on the foundation; galleries lined with soil-like material | Small piles of coarse sawdust below the nest | Soft, dark, cracked or stringy wood, often where it stays wet |
| Inside the wood | Rough, with soil and debris in the tunnels | Smooth, clean, almost polished tunnels | No tunnels, just decay |
| Do they eat wood? | Yes | No, they hollow it out to nest | Fungus breaks it down |
| The real cause | Soil contact and moisture near the foundation | Wood with higher than normal moisture | A water problem |
| Who fixes it | Licensed termite company | Pest control, plus fix the moisture | Fix the leak, then a carpenter |
Sources: Purdue Extension E-22 (ants); Penn State Extension; Bob Vila (2023).
Purdue says carpenter ants are usually less serious than termites but can still weaken framing (E-22). Notice that all three point back to water. If an inspector finds any of them, I want to know why that wood was wet: a gutter dumping at the corner, a leaking window, a deck ledger without flashing, a wet basement or a damp crawl space.
How are termites treated, and what does it cost?
There are two standard approaches, and Purdue Extension describes both (Purdue E-4):
- Liquid termiticide barrier. The soil along the foundation is soaked with termiticide, by trenching, rodding or drilling through slabs and porches. Control is immediate. The tradeoff is drilling and more invasive work.
- Bait stations. Stations go in the ground around the house and are checked regularly; termites carry the toxicant back to the colony. No drilling inside. The tradeoff is time: Purdue says control is slow, often several months to a year.
HomeAdvisor puts termite treatment at $263 to $1,033, about $621 on average. By method, it lists liquid termiticide at $3 to $16 per linear foot and bait systems at $8 to $12 per linear foot. Repairing termite damage runs $600 to $3,000, and up to about $6,000 for severe structural damage. These are national figures, updated June 2026 (HomeAdvisor).
Ask any company what the warranty covers. Purdue notes year-to-year and five-year warranties are customary, and to confirm whether there's a yearly renewal charge (Purdue E-2). A "retreat only" warranty is very different from one that pays for new damage. If the seller already has a transferable bond, get a copy.
How serious is termite damage? Should I walk away?
Purdue's advice is worth repeating: termites work slowly, a house won't collapse overnight, and you have time to get more than one bid (Purdue E-2). What separates a minor note from a serious one:
| Report says | How I'd read it |
|---|---|
| Old tubes, records of past treatment, no live insects, no damage | Minor. Get the treatment paperwork and any transferable warranty. |
| Evidence, no records, no live insects | Moderate. Treat it, because nobody can show it was handled. |
| Live termites, little or no visible damage | Moderate. Treat now. Ask for treatment by a licensed company before closing. |
| Live termites plus damaged sill plate, joists or subfloor | Major. Get a contractor or structural engineer to size the repair before your deadline. |
| Damage hidden behind finished basement walls | Unknown. The inspector can't see it; budget for opening a wall if there are other signs. |
When I read a WDI report, I look first at where the evidence is, then at the wood above it. The sill plate sitting on the foundation and the rim joist beside it are the first wood termites reach. On a newer house, that sill is pressure-treated, the soil is often pretreated before the slab is poured, and there's clearance between the dirt and the siding. Problems usually start when that clearance disappears: mulch piled up against the house, a grade that was raised during landscaping, a patio poured right against the siding, or firewood stacked on the foundation.
I tell buyers that a treatment is a line item, but a soft rim joist is a carpentry job and a reason to look harder at the moisture around it. Have the contractor probe the framing in the area of the evidence before you decide how much to ask for.
Should I ask the seller to treat for termites?
If the report shows active termites or evidence with no treatment records, yes. It's a common inspection request. How to ask:
- Treatment before closing by a company licensed by the Office of Indiana State Chemist, with the invoice and the warranty transferred to you. Put the method in writing if you care whether it's a liquid barrier or baits.
- Repair of damage by a licensed contractor, after the treatment, with a receipt. If the damage is structural, ask for an engineer's letter on the repair.
- A credit when you'd rather choose the company and the warranty yourself. Get your own bid first so the number is real.
On a VA or FHA loan, ask your loan officer early what the lender needs to see cleared before closing, so treatment fits the timeline. More on how the response works: the Indiana inspection period.
I'm selling. Do I have to disclose termites, and should I treat first?
Indiana's seller disclosure form asks directly: "Have any structures been treated for wood destroying insects?" and "Is there any damage due to wind, flood, termites or rodents?" (State Form 46234). If you know, answer it, and pull together the treatment invoice and any warranty.
If you know there's an active problem, treat it before you list and keep the paperwork. A buyer who sees "treated in 2026, warranty transfers" reads the WDI report very differently from one who sees live termites and no explanation. If you had termites years ago and it was handled, the records are worth their weight in gold: without them, an old tube can lead to a treatment request anyway.
More on what to fix before listing: what to fix before selling, and how the form works: the Indiana seller's disclosure.
Who should do the inspection and treatment? Can I DIY it?
In Indiana, a business doing for-hire wood-destroying pest inspections must be licensed by the Office of Indiana State Chemist (OISC) and employ a certified inspector, unless it already holds the termite control license (OISC). You can confirm a company's credentials with OISC at Purdue (765-494-1492, per Purdue E-2).
Purdue strongly recommends a professional for treatment. The termiticides used for soil treatment are restricted to professional applicators, and the effectiveness of over-the-counter baits is unknown (E-4). Purdue also lists red flags: a company that shows up unannounced, claims a secret formula, pressures you to sign today or says Purdue endorses it (E-2).
What you can do yourself: keep mulch and soil a few inches below the siding, move firewood away from the house, fix gutters and downspouts so water drains away, and keep the crawl space dry. Those are the conditions that invite termites in the first place.
Why a Realtor Who Built Houses Reads Reports Differently
A home inspection report runs dozens of pages, and almost every item ends with "recommend evaluation by a qualified professional." That wording is there for the inspector's protection. It doesn't tell you which items are a quick fix and which ones change the deal.
I spent about ten years designing houses and running their construction before I sold them. When my clients get their report, we go through it together and sort it into what to ask for, what to take as a credit, what to just fix yourself later, and what needs a specialist before the inspection deadline. If you're buying or selling in central Indiana, I'm happy to do the same for you.
Construction engineer turned Realtor. Straight answers before you sign.
Send Me the Page That Worries You
Tell me the address and the finding. I'll tell you how serious it looks from a builder's point of view and how it usually gets handled in a deal.
Send a MessageWhat's Your Home Worth?
Selling an older home? Start with a realistic price based on recent local sales.
Have a Termite Question?
Send the address and the line from the report. I'll get back to you with how serious it looks and how it usually gets handled.
General guidance from a Realtor with a construction background. Hire the licensed trade for the diagnosis and the fix.
General information from a Realtor with a construction background, not pest control, engineering or legal advice. Cost ranges are national figures from HomeAdvisor (updated June 2026); Indianapolis-area bids vary. Loan requirements change and lenders add their own rules, so confirm with your lender. Use a pest control company licensed by the Office of Indiana State Chemist.