I had someone last year who bought a FSBO. They didn’t want to spend the money on a home inspection.
A week after closing they found termites in the home. The property appraised for enough, but it appeared they overpaid also.
In Maryland, most lenders require a clean wood-infestation report at the closing table.
The buyer chooses the company and pays for the inspection.
The Seller is obligated to pay for the extermination of active infestation and to pay for any repairs caused by said insects.
FHA and VA backed mortgages require pest inspections before they will fund the loan.