Somewhere I know I posted a blog article about a home on Washtenaw in Ann Arbor that we almost helped a client buy.
I say almost because when the buyer's home inspector looked at the home he found EIFS that had been incorrectly installed. He couldn't determine if it was a $5,000 problem or a $30,000 problem so he recommended some actuall testing be done. The builder on this brand new $1.1 million home refused to have the issue looked at. He then accused us of being unreasonable and our buyer walked away. (Interesting note to add to this paragraph - this builder originally balked at providing a one year warranty on the home. It makes you wonder if he actually knew about the issue.)
Also interesting to note that the listing agent on this home told our REAL buyer agent that the home was stucco. Could it be that an agent who sells seven or eight million a year actually doesn't know the difference between synthetic stucco and real stucco?
For background - EIFS is Exterior Insulation Finishing System or synthetic stucco. It works fine if it is installed correctly on masonary walls. You see it every day when you drive by Taco Bells and McDonalds. But if it is installed incorrectly and on wood stud walls, watch out! Tens of millions of dollars in damage to residential homes across the country. Do a Google search on EIFS problems and you will see a sample of articles on the subject.
The problem is significant enough that we've heard some relocation companies will not provide employee buy-outs if the employee's home uses EIFS.
Now here is the new item:
I hear that recently a luxury home in Ann Arbor was sold and the inspection company did not inform the buyer of the EIFS on the walls and did not inform the buyer that EIFS was often a problem. The buyer closed and later sued the inspection company to the tune of about $40,000 for negligence. And fortunately the buyer won!
Again, this whole problem would probably have never happened if the buyer had used our office, because as a buyer agent we discuss these issues and inspectors. I'm sure the buyer used an office that only offered designated buyer agency. And I would also bet that the agent lied about the level of service and called it buyer agency.
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Jon,
Today there are a number of hybred external wall systems that combine traditional stucco and Dryvit. Inspectors like myself will talk to the builder (if its new construction) to clarify the materials and installation. Rarely have I seen EIFS installed correctly on residential homes but on commercial I see it done correctly 100% of the time. The difference being that on commerical the architect oversees the contruction and ensure they are done to specifications. We have a good page on our website that discusses EIFS.
Jon I don't know you or the experience in your office but if the inspector couldn't determine the kind of stucco that was on the home, how would you have known to bring it up as a potential issue? Most realtors I know are more focused on removing road blocks to the sale rather than creating new ones.
//Rick
Rick Bunzel, CRI
Pacific Crest Inspections
NPSAR Affiliate of the Year 2006-2007
WWW.PacCrestInspections.com
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