Key Real Estate Inspections #4869

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Damage like this can start out simply with a small water pipe leak, storm water or dirt/soil setting along the edge of the bottom of the wood or top of the foundation. Gutters to close to the exterior walls. Sprinklers spraying on the side of the house.
All the above mentioned can cause wood boring insects such as termites, ant beds, and attract dirt-dobbers.
Yes I'm an inspector and you can not completely see the damage unless you open the wall.