LP Siding Purchase (field review)

[wyecoyote]

Got a field Review the other day for a purchase. They also faxed the home inspection to me. The home inspection was done prior to the appraisal. The client also stated on the order please read the home inspection appraiser had inspection but does not address in appraisal. So me I think oh kay perhaps a few repairs are noted but lets read it. Go through yada yada yada some things here and there (hole in drywall, clear crawlspace, vapor barrier, etc..). Then get to siding line big bold letters LP Siding on house. I think ok so it has LP siding no problem I'm doing the field review. I then read through the appraisal report no mention of the LP siding he does mention the things from the home inspection but nothing about the LP siding. I can not say for sure that this appraiser just had fuzzy eyes when he came to the siding line or that his copy was whited out. Now I don't know about you but I would disclaim this everywhere on the report and see what market data requires. I also wonder if this appraiser has paid up his E&O insurance extreme liability there. Just everyone please read those Home Inspections.

Ryan

 

[rtubbs]

Sorry Ryan, so what's LP siding? Down south, LP stands for liquid petroleum. Don't think builders are using that as siding yet.

 

[wyecoyote]

Oh sorry forget about that others may not know. LP Siding stands for Lousiana Pacific Siding. This was a siding product that failed and was put on houses around the early to mid 1990's. The siding warps and causes water to get into the studs/insulation and can cause immense amounts of problems with dry rot/water damage and even mold. There was a class action lawsuit and Lousiana Pacific had to pay millions to homeowners to replace the siding.

Ryan

 

[Jim Bartley]

Your post is confusing. Are you saying the home inspection report stated problems with the LP siding?

 

[Frank Bertrand]

just how much is an appraiser suppose to know about siding? In local areas the siding may have been installed properly, in other areas, a sloppy job means short overall life. This goes for dryvit, Masonite T111 brick and good old abs-cement. I saw the exterior of a home built with sewer brick (yes there are different types of bricks) and it was a poor choice as it could not stand the freezing and thawing in northern climes. Not many know of the various types of bricks.

If a builder chooses inappropriate building materials, it shows up eventually in quickened physical depreciation.

 

[wyecoyote]

Ok, so this may be really confusing for those not in this area and I should have fully explained the problem. Louisiana Pacific Siding has been a problem historical data including recent sales shows a 5-10% market adjustment for sales with this type of siding.

The home inspection has found problems with the siding including warping, craking, nails that "popped" out due to expansion and contraction from water, and cracks in the seals between the siding. There was no mention of this in the appraisal report.

Those unfamiliar with this area may not know about it and sorry for any confusion. There have been appraisers in this area that have been sued successfully over the Louisina Pacific Siding issue (not mentioning it in report). Those lawsuits were settled with the appraisers E&O insurance having to replace the entire siding or in two cases that I know of the appraisers not having E&O having to pay for the siding and the lawyer fees out of pocket.

This can really come back and bite the appraiser in the rear in the near future.

Ryan

 

[Bobby Bucks]

Exterior finishes can be interesting at times, especially with LP Siding, Synthetic Stucco (EIFS)and Masonite siding. I am curious about the lawsuits against appraisers.....are most of them from the borrowers after a purchase or from a lender after default? I’ve seen many MLS cases where the real-a-tore/agent does well to even distinguish between a raised slab and a crawl space.....when you factor in the type of siding on a structure, they’re “In over their head.” as Woodrow would tell Pea Eye. I’ve saved several homeowners’ money in the past by simply making them aware that their exterior is LP Siding and I give them the info as to where to inquire about a settlement......not all homeowners are even aware of the entire story. With all the above surfaces, much of the problem has to do with the climate, humidity, competency of the GC as well as the subs who applied the material. Here is a good site for identifying problems with LP as well as settlement contact info.

http://www.lpsidingclaims.com/identifysidi...ng-problem.html

For synthetic stucco, try
http://www.kinsella.com/eifs/ or simply make a few google.com searches.....there are hundreds of
sources.

For masonite, try http://www.masoniteclaims.com/

The Bucks Ranch....brick veneer, polybutylene free and on crawl space

 

[wyecoyote]

Bobby,

I read about the lawsuits against appraisers in the past in the local papers. Around I belive 1998-2000 it was a hot issue here in western Washington about every couple of weeks a new article would come out. Several of the houses built here were built with LP siding. Even in that time frame you would see listings that would claim "no LP Siding" or would list the type of siding so that people would know.

The 5 claims against appraisers that I know of were from buyers after they lived in the house and found out from other HO's in the subdivision that were replacing the siding that there house also had LP siding. Several got free siding at the expense of the appraisers E&O and in one case the appraiser did not have E&O and paid out of pocket.

It was very intersting in 2000 I drove through one subdivision that had about 40 houses half of which were down to the sheathing and the siding was being replaced. Many of the homeowners found that the claim did not cover the entire siding replacement and had to fork out some of their own money. This may be why here it is such a hot issue and well known by appraisers.

Ryan

 

[Karl]

IF Appraisers are SUPPOSE to NOTE EVERYTHING that has been RECALLED- HAZARDOUS-POTENIALLY HARMFUL- POSSIBLE THEART TO SAFETY - HEALTH- WELL BEING etc THERE is NOT A HOUSE in the UNITED STATES that is SAFE to live in. Because U can find the lawyer that will present the CASE. WATCH for the CLASS ACTION SIUTE Coming your way from a defect in MANUFACTURED HOMES Manufactured in Arizona.

 

[Mountain Man]

In late 80's and early 90's, we had the same problem with GA & LA Pacific siding in Georgia. The market went nuts when the news hit the paper. Realtors and all of us were using all kinds of disclosures. The owners were taking BIG discounts, and we could tell which sale was due to Pacific siding as they would through your range of values way out of kilter. The market corrected and things cooled down, or folks forgot about it. 8)

The big class action deal gave some money to some folks, but it was pro-rated and based upon the damage to the house, as wells as the negotiated $$ between Pacific and the HO. It is now common knowledge in our area, so it is pretty much buyer beware when buying one of those houses. However, 99% of them have now been covered with vinyl. Now days, the builders are using vinyl or the concrete based siding, no more pressed board on the exterior. But they still use pressed board in the baths and kitchens flooring. :?