This wood wall is deteriorating from water splash from the roof above and also because the shingles are in contact with the wood siding. If gutters were present this could have been avoided.
Walls Interior and Exterior
When inspecting exterior walls, attention is paid to brick, rock and stucco walls for cracks. When seeing some mortar cracks in brick walls, a determination of severity must be obtained. Some cracks are small and are not considered serious. Other cracks are more severe such as "Stairstep Cracks" These show a more advanced cracking problem that may be connected to foundation movement.
Interior sheetrock cracks can sometimes be found. Small settling cracks happen on the majority of homes without foundation movement. Larger cracks happen with more advanced settling without foundation movement. Cracks found at the corners of window and doors ususally indicate some foundation movement. Occasionally a foundation company may be called out for further analysis of advanced cases.
Some older homes have a type of siding called "Compressed Hardboard Siding". This type of siding was made by many companies, but only a few made this type of siding that would fall apart with age. Masonite was one of these companies. If not properly maintained this siding would fall apart or warp. Many homes have this type of siding, and if properly caulked and painted can actually last for many years.
"Weep Holes" are a common term for the small holes located at the bottom of brick walls. These holes are placed there on purpose to allow the brick wall to breath.
"Hardi Plank Siding" This siding is a cement fiberboard which resists water damage and termites. It's great stuff if it is installed correctly.
This is not the correct nailing proceedure if you can stick your fingers under the edge.