I inspect EIFS homes and commercial buildings all the time and have for about 10 years.

EIFS is an excellent product, of which there are multiple manufacturers (Dryvit, ST, Masterwall, etc...). Different EIFS systems within that too. Tons of commercial EIFS applications that are in great shape all over the country, even in the south. Excellent weather resistive barrier system and really does help on energy conservation.

When the housing boom hit the Southeast back in the late 80s and through the 90s, EIFS homes became the big thing for a while. Residential builders started using EIFS when they were not really aware of the fine details and cautions one should take with the product. As a result, a lot of really bad construction occurred and lots of home has severe water issues. NOT from the product itself, but eh installation, application and construction details. Architects even got in the mess by bad design.

With the rise of residential EIFS, there were not many industry standards in place. Construction of EIFS homes did not takeinto account water intrusion like they should. After lots of issues, in the mid 90s the EIFS Industry Manufacturers Association (EIMA) set out some guidelines (some of which my father-in-law helped design). Termite coverage carriers also had a hand in designing some details tool. The result was a guide that dealth with all openings (windows, doors, etc...), all penetrations (decks, pipes, vents, lighting), caulk joints, control joints, proper fastening of insulation board, flashings, trim, sealed and backwrapped above grade, other details, etc... These guidelines fixed 90% of the issues.

The 10% left are due to windows that fail, sealants that fail--allowing water into the CLOSED wall system, and workmanship issues.

Our wet, hot, humid climate in the SE only exacerbated the already bad issues with details and installation. EIFS homes out west do not have as many problems, even if constructed without the newer guidelines.

Interesting note: Commercial EIFS builders who had worked with the product for decades started building residential in the housing boom.. Their homes have very few issues in comparison to the residential flux of builders. It was all about product experience and knowledge...and details. Also commercial building are not built like residential design homes...not all the intricate elevation facades and roof line intersections, plus they use commercial grade windows and door typically--designed to self flash and self drain commonly.

There was a huge class action suit in the mid to late 1990s, that dealt with these guideline issues from manufacturers to contractors. Dryvit for one paid a lot of money to reclad and repair homes. We were involved with around 250 homes in that class action just here in B'ham...last lawsuit finished up in the mid 2000s.

Unlike brick that has an airspace and through wall flashing with weeps, when water gets into a backwrapped and closed at/above grade EIFS system the water has nowhere to go. So it deteriorates the sheathing and framing and causes unseen and unknown damage sometimes for years. Picture this: you put water in a styrofoam cup, put a styrofoam lid on it, caulk it up, and leave it outside for a year. Chances are you'll still have water in that cup a year later.

The biggest problem with EIFS: Once water gets into an EIFS system from non-EIFS components (flashings, doors, windows, decks, etc...) it is very hard for the water to evaporate quickly or get moved to the outside. IT is 99% a failure of another product, not the EIFS itself...unless the workmanship on the EIFS was terrible. A large EIFS wall with no windows or penetrations is very very hard to make leak (assuming it was installed correctly with proper joints per the guidelines). Introduce a window (which windows leak, no matter what kind or what cladding is ona house) and now you have a potential source.

If an EIFS home has quality windows and doors, proper flashing and caulking, is maintained...it is a great cladding.

On termites: There are very little issues with termites on an EIFs system that was properly back-wrapped and sealed to the substrate 8" above grade (per EIMA guidelines). Pre 1994- 1996, it was common for EIFS to be run below grade...also common for EIFS to be left open at the bottom below grade. Perfect opening for termites to enter a house UNNOTICED by termite inspectors or homeowners. Then again if the house was properly treated for termites that would help. Excess water though in a wall system will attract termites though, so EIFS that is not bult per the guidelines can be prone to infestations. But so can all the stone work on houses too--same issues with EIFS--leaks, rot and termites galore.

A well built EIFS home is nothing to walk away from, if and only if, the construction details are performing. EIFS got such a bad reputation (deservedly so since all the issues) that lots are gun shy. Often you can get a GREAT deal on an EIFS home, and then do a total reclad with the savings and still come out good. I have a buddy that has bought several EIFS homes and then reclads and flips them for nice profits.

I know you are walking away and I don't blame you...just wanted you and others to have a full understanding of EIFS issues. If you ever have any questions, let me know. I'm a certified EIFS and Building Envelope Inspector, Licensed Home Builder and General Contractor.