Huntington Beach, Calif. (Vocus) July 14, 2009
In today's real-estate world, the word "climate" is used almost exclusively to describe the tough economic conditions. According to Rick Peters, president of R. E. Peters Company (a real estate consulting firm specializing in toxic assets), builders, foreclosing lenders and other asset managers need to think about "distressed property" more literally - as in what exposure to time and the elements can do to its value.
Peters recently stated that foreclosing owners who are suddenly holding hundreds of unfinished homes since the housing collapse often overlook the common-sense basics of maintenance. But they'll pay for that neglect. Prolonged exposure to sunlight, wind and rain can do long-term structural damage that will make the property unbuildable or unmarketable even after the economic climate brightens. This is one of the greatest unseen risks that blindsides today's accidental landlords, particularly those rooted in the world of finance.
Peters said in his work as a consultant he has come across scores of real-world examples of how today's penny-saving neglect can be very costly down the road. But many of these risks are manageable to those who take time to learn how to deal with them.
In buildings with unfinished exterior surfaces or interior drywall, for instance, weathering and deterioration can become the largest cost component for owners. The receiver or trustee should weigh this risk when considering the expense of wrapping a wood-framed structure with an exterior weather-barrier to guard against further deterioration.
And the current owners aren't the only ones who should care - consumers who may be buying such properties in the future need to know what to look for to determine how a home weathered the elements during the housing downturn.
Media outlets interested in covering this story can arrange an interview with Peters by contacting Anton Communications at 949-748-0542.
About R.E. Peters Company, Inc.
R.E. Peters Company, Inc. is a real estate consulting firm based in Southern California that assists banks, land owners, asset managers, trustees and court appointed receivers with assessment and management of distressed real estate assets. For more information, please call 714-713-1277 or visit our web site at http://www.repeterscompany.com.