The pest report will look for any damage to wood, most likely caused by termites, as well as any water damage that may be found in the home. Unlike the property inspection report, the pest report will usually list the costs required to alleviate these issues.
The pest report describes damage as a Section I or Section II issues. Section I issues are current problems with the home, such as active termite infestation or dry wall damage in which water has rotted away at the wood underneath the flooring or walls. Section II issues are future problems with the home, ones that could lead to pest or water damage in the future, such as a lack of caulking by the bathtub that could lead to future water damage.
Generally, the seller is responsible for Section I issues, and the buyer is responsible for Section II issues. However, if you purchase the home in “as is” condition, you are responsible for addressing the Section I issues. In a seller’s market, such as the one we are currently experiencing, the vast majority of homes are taken “as is.”