Your realtor should be able to help you out with your questions.
If both parties signed a WPA then it should be stated what the responsibilities are for buyer/seller under section 1.
As a side note all termite companies will contract out alot of the carpentry work associated with section 1 issues. Most of the time, they gaffe the seller heavily on these charges. It is not in anyway illegal or problematic for the seller to hire an independent 3rd party (their own contractor) to do the work themselves. After the work is done the termite company comes out to reinspect and will either issue a clearance or identify what needs to still be done.
Once more, your agent should be able to explain all of this to you so you can protect yourself. You may be getting a good deal on the home, but it is not so good if you have to do some extensive remediation after the sale that you didn’t know about.
As for the cost of the bathrooms, it sounds like the damage is indeed expensive. Without looking at it, I cannot comment on whether her quote is sufficient or not. You need to think about it though. Her obligation under the WPA is to remedy section 1 items. So as long as the dryrot is removed and damaged members are repaired, she can argue that section 1 items are remedied. However that alone may not mean that the job was done correctly and there could be big problems down the road because of this.
The amount of damage found by the termite inspector would be an indicator that yes, there is further damage in areas that cannot be inspected. However you will need to negotiate with the seller about inspecting this area. You, not the seller are responsible for due diligence including calling a mold guy out to take spore samples. Now if some of that inspection process can cause damage to the home, you better get that ironed out ahead of time.
