The termites in San Diego seem to be on steroids. They even attack redwood, though they only eat the lighter wood. The termite guys charge an arm and a leg to do the repair work because they can. They scare the seller and send a big bill and they pay every time. So, the $4K of work is probably something they’ll do in a couple of days. As the other poster said – it isn’t atypical.
Make sure they will guarantee and guarantee a termite-free home for a long time.