Hi DGH,
I have torn many a house apart for remodels and additions. From this experience I would not think termites on the house you are describing could have a very detrimental effect. Neglect, dry rot and cheap/poor construction would be more likely a cause for expensive defects. I am not saying termites can’t do some damage and I guess what is serious in one person’s eyes is minor in an other’s. Most termite issues are discovered in remodels and repairs and get fixed as they are exposed and the life of the house goes on. Until then, they get treatment occasionally and superficial repairs. Termite work to get a house through escrow is superficial and a ripoff most of the time.It also does not have to be automatically included in the sale.
I think your issue with keeping or selling the house for other reasons is little more complex. My instincts say. Why not start new just to have more ability to exercise your freedom of choice. Learn more about the market meanwhile. If you were going to get the house at an obvious discount then maybe that opinion is out the window already. Be careful to avoid effectively buying your siblings out at a higher price than the property is worth or face accepting depreciation all by yourself. I have seen this happen recently and it is unfortunate to say the least.
Try to put a cost comparisions picture together. Taxes, commission or avoidance of them etc. We don’t know how dealings with your siblings would proceed, so IMO,can’t really advise. You didn’t mention any emotional attachment to that particular house either so maybe that is a factor? Good luck.
