In article , (Email Invalid) wrote:
I am currently under contract to purchase a home in Chandler, Arizona.
According to my agent, the just released termite report shows that
there is some termite activity. I'll get a copy soon and also the
agent suggested I talk to the inspector to determine the extent of the
termite issue.

At this time I do not know the extent of the activity and if there is
any damage to speak of but this situations is of course somewhat
"disturbing".

My main areas of concern a
1. The extent of the termite activity and any damage
2. The effect this will have on resale value (if the problem is
treated but this fact were disclosed to future buyers as would be
required)

The contract stipulates that the seller must pay for the treatment.
But I also wonder if I should ask for a reduced price for the possible
value lowering effect due to this factor.

That depends on the extent of the damage, and how willing you are to walk away
from the deal. If the damage is minor, and completely repaired, I suspect that
the seller will have little interest in lowering the price.

I am a first time buyer and not all that knowledgeable about the
extent of termite problems in Chandler. I'd prefer if termites
activity wasn't found but then again this could be quite common and
inevitable in Chandler.

I feel a bit uneasy about buying a property that isn't termite free
but on the other hand it might be common enough that a record of
termites isn't going to be that big of a deal down the line when it
comes time to sell.

If the damage was minimal, or is completely repaired, and the infestation has
been eliminated, you probably won't see much impact on resale value at all.

Does anyone have any advice or suggestions as to what I should do or
how much of an issue this is?

Once you find out the extent of the damage, you have a decision to make. Real
estate purchase contracts normally allow the buyer to withdraw without penalty
if inspection discloses a major defect, and extensive termite damage certainly
falls into this category. If the damage is extensive, you may want to simply
walk away from the deal -- *after* consulting with your attorney. Extensive
damage means expensive repair; you can always attempt to negotiate with the
seller, either for the seller to pay for the repair, or to reduce the selling
price correspondingly, but be prepared for those negotiations to go nowhere.