Defective Construction Materials - Easy Fixes or Nightmares Waiting to Happen?

It seems like there is always some defective construction product in the news.  Years ago it was lead based paint and asbestos.  Back in the mid to late 90's, it was EIFS, fire retardant plywood and Polybutylene plumbing.  Now, it's defective drywall from China.  What should you do?  Run away like everyone else from these properties or embrace an opportunity for a possible real estate investment deal?

The answer is......it depends.

EIFS (Exterior Insulation and Finish System) is an exterior coating used extensively in the 1980's and 1990's.  The product offers a smooth, stucco-like finish (though it is NOT stucco) that was very popular.  The problem?  EIFS doesn't work so great when it's applied on stick-built (aka WOOD) homes.  Seems like it's very difficult to keep water out of the seams around windows and doors which creates a nice buffet dinner for termites.  It's not really a product issue, but more an application issue.

Polybutylene Plumbing (often called Qest) is a plastic plumbing used extensively during the late 1970's through mid 1990's.  It was easy to install as it only required simple fittings to connect it.  Many theories exist if the fault with the plumbing is from the fittings or the composition of the product itself; however, it has been the target of many lawsuits and is considered an inferior product.

Chinese Drywall is pretty self explanatory.  When there were shortages of drywall supplies in the US during the recent building boom, builders looked overseas for suppliers.  China supplied a quick and inexpensive product which has been known to emit sulfur-like fumes and corrode wiring.

Surprisingly, what may seem like a big, expensive fix, can sometimes be pretty simple.  I had a client a few years ago who loved a particular house, but was afraid of the Poly plumbing.  The seller said to get an estimate for replacement and he would split it with my client.  The cost to re-plumb the entire house?  $7500.  Another client knows the issues with EIFS but just loves the look of it on her home and is well aware that someday, when she decides to sell, it will cost her $75,000-$100,000 to replace her EIFS with brick.  Chinese drywall?  Well, it depends on if just the drywall or drywall + electrical needs replacing.  That being said, once you take all the drywall out, replacing the wiring is not that difficult a process for an experienced electrician.

The key here is education.  Know what the common defective construction products are and read up on them.  Understand how difficult or easy they are to fix and what approximate costs are.  Then, keep an open mind when looking for a real estate investment property and you might just find a gem that no one else will touch.

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