Thread: LP Siding - Repair or Replace?

Hey all, not a RE agent, but what is LP siding?

First... You had an inspection done? Were you mandated to do such? I hardly ever hear of a seller doing an inspection on their property, for one, and especially when they are in the market to sell. I am curious to WHY you had an inspection done.

What I would do, if you are concerned about this "LP siding issue" since it is not obvious is wait and see if it is a problem to the end-buyer. Have room for some consessions, like give them $xK at closing, if they want something done about it, or lower the purchase price, or... (there are many ways to do this, just find one that the buyer will accept.)

You could also make the purchase contingent of getting the work done, you could do a lot of things, but WHY do something, when you haven't even recieved a complaint? (Sort of reminds me of one of my "property manager-in-training" he wants to do things that really are not necessary, unless MY objective is to spend money frivilously... I'm training him, and he is finally starting to learn.) Not that I run slums, I don't but some of the things he wants to do are simply cosmetic, and probably never going to be impactful in the slightest to the neighborhood or the tenants.

In short, I would wait until you had a fish on the line, who was complaining about the issue... Trying to figure out and eleiminate all the "what-ifs" will only drain the pocketbook, since 90% of the "what-ifs" will never be an issue to the end-buyer.

My $0.00002 worth.

I am going to guess that you had an inspection done because you were aware of the problems with LP siding. You are not the only one who knows about this. The real estate agents in your area also know about this and so do the lenders and home inspectors.

A buyer will have a home inspection done and the LP problem will surface even if you patch the worst areas. Home inspectors know to look for this type of siding. If the buyers lender finds out about it they won't be able to get a loan.

Paying a buyer to replace the siding will cost way more than if you replace it yourself, both in actual costs of the job and in lost offers because of the siding.

If you hide the issue and sell the property you will be opening yourself up to a lawsuit which you will lose.

Replacing it now will be your most cost effective approach.

Woooa nelly - first of all not all LP siding is bad. And sometimes a man made siding is called LP when it is is not.

If your siding needs repair and paint then do it.

If your siding is from the era of the LP siding class action law suit replacing it may or may not be of benefit to you. As long as the siding is still functionble a loan is not a problem... some buyers may want it replaced and will ask for that others may want to replace it themselves, with a product they want.

A credit to a buyer may be less than the siding and it will certainly be less effort on your part.

Thanks for your replies.

Yes, our siding is from the era of the LP class action lawsuit. We had the inspection done, because we knew there was some damage, and definitely DON'T want to be pulling the wool over a potential buyer's eyes. We want to do the right thing, but at the same time don't want to pay for anything unnecessary.

Do you think it's better to:

• Give the buyer the choice (i.e. don't do anything before putting it on the market) and take a hit on the selling price
• Do the repairs or replacement before putting it on the market

Thanks again.

Originally Posted by lilvictorians

Thanks for your replies.

Yes, our siding is from the era of the LP class action lawsuit. We had the inspection done, because we knew there was some damage, and definitely DON'T want to be pulling the wool over a potential buyer's eyes. We want to do the right thing, but at the same time don't want to pay for anything unnecessary.

Do you think it's better to:

• Give the buyer the choice (i.e. don't do anything before putting it on the market) and take a hit on the selling price
• Do the repairs or replacement before putting it on the market

Thanks again.

With the current market termoil that was caused by individuals in many secotors of the economy not playing above board I would say that most buyers are gun shy. Add to this a large amount of inventory in most markets and the fact that those properties that are selling are dirt cheap properties of distressed sellers (such as foreclosures) and prestine homes that nothing has to be done to. And what you have is a market place where it makes sense to replace the siding because it is well known that repairing LP will not assure that a person will not have problems down the road and people don't want to do anything themselves without being heavily compensated for their troubles.

In the end you will have a smoother transaction and will likely gain a larger net if you replace the siding.

I wouldn't, unless you own a siding company or have the repair costs deducted and have some spare time on your hands. Get the lp siding issues fixed first.

Hi everyone. Do it first what you need first. Do the fixing. If it's left or done by others both way it can incur more cost. All of the members have agreed on this. I also think the same way.