What a WDO letter does and does not cover

If you are buying a house on the Gulf Coast, your lender will almost certainly ask for a wood-destroying organism report. It is a narrower document than most buyers assume, and knowing its edges is worth doing before closing day rather than after.

What it covers

Visible evidence of termites, powderpost beetles, old house borers and wood-decay fungi, in the accessible areas of the structure. That last phrase is the important one.

What it does not

It is not a home inspection and it is not a guarantee. A finished basement wall, a full crawlspace or a stored-to-the-ceiling garage are all inaccessible, and the report will say so rather than guess.

Findings are not deal-breakers

Most reports that come back with something on them come back with old, treated damage. What matters at the table is whether there is active infestation, and whether a treatment and repair estimate is attached.