Termite Damage found during inspection

[Aaron Taylor]

Looking for some opinions on some damage found by the inspector today on a house we have under contract.  Evidently there is some old damage where it was treated a long time ago in 1995 (the pictures in white) according to the owner and then an active spot by the garage door interior.  No other spots were found.  It was an older lady who owned the house so I don't think she ever went through the trouble of fixing anything cosmetic.  Obviously the drywall stuff looks bad, but not being experienced with termites I wasn't sure how much something like this would cost to fix?  Looks like removing the drywall and then probably replacing/adding support inside?

The garage looks like you could just treat and be done with it almost.

Obviously the first thought for some would be to 'run' but if the repair opinions aren't high I don't think it would be a deal breaker, unless people think otherwise?  There's room in the budget to fix this unless it's going to be a $5k+ thing.

Thanks

[John Warren]

@Aaron Taylor termites aren't the end of the world honestly. If you call one of the big local shops you will be scared by the price to treat ($1500 or so). I treated myself at my first home. The chemicals were $400, and I essentially dug a 12 inch ditch all the way around the perimeter and dumped them in. It was really simple stuff, and I saved over 1k for a few hours of work. 

As for repairing this damage, I would just skim coat the drywall if you can. If not, the repair should still be under $1,000 if you can find a cheap handy guy to demo that and redo it. The materials probably will cost $100 or less if you do it yourself.