John A. Kilpatrick is an analyst with Mundy & Associates, a Seattle-based firm of economic, market, and valuation analysts. The firm performs valuation services for litigators in various areas of law. This commentary is an excerpt of a presentation Kilpatrick made at Mealey’s Construction Defects Conference in December 2000 on the topic of the value implications for exterior insulation finishing systems (EIFS), which many also refer to as “synthetic stucco.” Owners of EIFS-clad properties face significant potential stigma-related value losses stemming from three distinct areas of impairment:
- Present value of future repair and replacement costs,
- Present value of future increased maintenance costs, and
- Marketability impairment.
Author: John A. Kilpatrick
Originally published in Mealey’s Litigation Report: Construction Defects, Vol. 1, No. 12 (January 2001)