The inspector found termite damage during my option period on a Craig Ranch or Stonebridge Ranch resale — is that an automatic deal-killer or can I still close?

The inspector found termite damage during my option period on a Craig Ranch or Stonebridge Ranch resale — is that an automatic deal-killer or can I still close? In most cases, termite damage is negotiable, not fatal, as long as you act fast within your Texas option period and get the right information before it expires.

Termite damage shows up often in mature McKinney neighborhoods like Craig Ranch and Stonebridge Ranch, where many homes are now 15 to 25 years old and have had years of irrigation, mulch beds, and wood-to-soil contact near foundations. Finding evidence of wood-destroying insects on an inspection report feels alarming, especially if this is the first time you've bought a resale home. But a termite finding is really just a data point. What matters is how severe the damage is, whether the infestation is active or old, and what it costs to treat and repair. Some buyers walk. Many more renegotiate price or repairs and close on schedule.

This post walks through what to actually do once that report lands in your inbox: how to get a clear read on the damage, how Texas option periods let you negotiate without losing your earnest money, and when termite damage really should send you running. We'll also cover how Collin County's soil and climate make termites a near-universal issue rather than a red flag unique to one house, and why that context matters when you're deciding your next move.

First, Understand What Kind of Termite Finding You're Dealing With

Not all termite reports are created equal. There's a big difference between old, treated damage with no current activity and a live, active infestation chewing through structural framing right now.

• Cosmetic or historical damage: Evidence of a past infestation that was treated years ago, often disclosed by the seller already.
• Active infestation, minor scope: Live termites found in a small area, like a fence line or exterior trim, with limited structural exposure.
• Active infestation, structural scope: Damage to load-bearing framing, subfloor, or roof structure that requires a licensed structural engineer to evaluate.

Your home inspector isn't a licensed pest control professional, so if they flag termite evidence, your next call should be to a licensed wood-destroying insect (WDI) inspector for a formal report. This is standard practice in McKinney and across Collin County, and most lenders will require a clean WDI report before closing anyway.

Why Termite Findings Are So Common in Craig Ranch and Stonebridge Ranch

Established neighborhoods like Craig Ranch and Stonebridge Ranch have mature landscaping, established tree canopies, and homes old enough that minor termite activity has had time to occur. This is common across North Texas, where subterranean termites are active in the soil nearly everywhere. Texas A&M AgriLife's urban entomology program has long documented how prevalent subterranean termites are across the state, which is part of why Texas law requires a specific WDI disclosure form for home sales.

In other words, finding termite evidence on a resale in this part of McKinney doesn't mean the seller hid something or the house is uniquely compromised. It often just means the home is old enough to have had an encounter with termites at some point, like most of its neighbors.

Use Your Option Period to Negotiate, Not Just to Walk

Your Texas option period exists precisely for moments like this. Once you have a WDI report and, if needed, a repair estimate, you have several paths forward:

• Request a treatment and repair credit: Ask the seller to pay for pest treatment and any structural repairs before closing, or credit you the cost at the closing table.
• Negotiate a price reduction: If the damage is minor, a price adjustment may be simpler than coordinating contractor repairs before close.
• Request a structural engineer's letter: For anything beyond cosmetic damage, get a written opinion on whether the home's structural integrity is intact.
• Terminate and recover your option fee's purpose: If the damage is extensive or the seller won't negotiate, you can still terminate during your option period, though your option fee itself is generally not refunded.

Knowing exactly how your option fee and earnest money work in these situations matters, especially with the 2026 updates to Texas back-up contract rules affecting how much buyers put down and how those funds are treated during negotiations.

When Termite Damage Actually Should Be a Deal-Killer

There are scenarios where walking away is the right call, even in a desirable Stonebridge Ranch or Craig Ranch listing:

• The seller refuses to disclose or address an active infestation found by a licensed WDI inspector.
• A structural engineer confirms significant damage to framing, trusses, or foundation support members.
• The repair cost is high enough that it erodes your planned equity or renovation budget beyond what makes sense for the home's value.
• You can't get a lender to approve the loan without repairs the seller won't make.

In these cases, termite damage isn't really the dealbreaker, it's what the damage reveals about the home's overall condition and the seller's willingness to be a reasonable negotiating partner.

What This Means for Your Closing Timeline

Termite negotiations typically add a few days to your option period timeline, not weeks. Getting a licensed WDI inspector out quickly, and lining up a repair estimate before your option period expires, keeps you in control of the conversation instead of rushing a decision on the last day.

FAQ

Does termite damage automatically kill a home sale in McKinney?

No. Most termite findings are negotiated through repair credits, price adjustments, or seller-funded treatment rather than outright termination, unless the damage is structural or the seller won't cooperate.

Who pays for termite treatment when damage is found during the option period?

It's negotiable. Buyers often ask sellers to cover treatment and repair costs, especially if the damage wasn't previously disclosed, but the final outcome depends on what both parties agree to in writing.

Should I get a second inspection if my home inspector finds termite evidence?

Yes. A licensed wood-destroying insect inspector should confirm the extent and activity level of any termite damage before you make a final decision, since general home inspectors aren't licensed pest specialists.

If your inspection report came back with termite damage on a Craig Ranch or Stonebridge Ranch resale, don't guess at what it means. Send us your inspection report today — we'll tell you within the hour whether this is a walk-away or a negotiating chip. Jane Clark, Keller Williams McKinney, serving buyers and sellers across McKinney and Collin County.