Termite damage is distinct, and you'll be able to recognize it by the "waffled" or layered appearance of damaged wood. Termites can damage wooden walls, furniture and trees on your property. They will hollow these structures out, tunneling through them, leaving holes and empty spaces behind. Keep an eye out for small holes and hollow wood. Similarly, looking for mud tubes in walls, fences and other wooden structures may be among the telltale signs of termite damage.