Can You Sell A House With Asbestos? (Yes – Here’s How)
Thinking of selling your house, but worried about that asbestos you know about?
Asbestos can be a concern, but it doesn't have to halt your selling plans. You can still sell a house with asbestos - it's completely legal as long as you disclose it.
In this post, I’ll go over what Asbestos is, why it's dangerous and the disclosure laws.
And I’ll show you how to sell a house with asbestos step by step.
What Is Asbestos And Why Is It Dangerous?
Asbestos is a naturally occurring mineral that was widely used in construction and manufacturing for many years due to its valuable properties.
It's fire-resistant, heat-resistant, and strong.
It was used in everything from insulation to flooring, roofing, and even cement products.
However, it turns out asbestos is incredibly dangerous if inhaled.
Asbestos consists of microscopic fibers that can become airborne when the material is disturbed. When inhaled, these fibers can lodge themselves deep in the lungs.
Also Read: Common Household Hazardous Materials
Over time, these fibers can cause serious health problems like lung cancer, mesothelioma (cancer of the lung lining), and asbestosis (a lung scarring condition).
These diseases can take decades to develop.
However, even short-term exposure can be harmful, especially for kids whose lungs are still developing.
Because of the health risks, asbestos is now banned in many countries. The US finally banned the only legal form of asbestos - chrysotile, on March 18, 2024.
Can You Sell A House With Asbestos
Yes, you can sell a house with asbestos.
The presence of asbestos in a home can raise concerns, but it doesn't necessarily mean you can't sell it. It's legal as long as you disclose it.
Asbestos will also affect your home's market value, and it can scare some buyers away.
But if you price it right, you should be able to sell it.
Asbestos Disclosure Laws
Sellers are obligated to disclose the presence of asbestos in many countries.
The Residential Lead-Based Paint Hazard Reduction Act requires sellers to provide a disclosure form and any records or reports related to lead-based paint or asbestos.
Failing to disclose known asbestos issues can have serious consequences.
Not only could you face steep fines from the EPA or your state's environmental agency, but you could also be opening yourself up to potential lawsuits from buyers who weren't informed.
And trust me, those legal fees and settlement costs can really add up fast.
The disclosure requirements apply to all homes built before 1978, as that's when asbestos was phased out of most residential construction materials.
Selling A House With Asbestos
Now that you know the risks and the law, here’s how to sell a house with asbestos:
#1 Do An Asbestos Inspection
Before you do anything, you need to test for asbestos.
Hire a pro – someone who's qualified and licensed to inspect homes for asbestos.
They'll do a thorough check of your property and figure out exactly where the asbestos-containing materials are and what kind of shape they're in.
Don't try to do the inspection yourself – asbestos is dangerous.
Also Read: no response from buyer after home inspection
Depending on your situation, you might need a more in-depth inspection like a management survey or a pre-demolition survey.
#2 Decide If Or How You’re Going To Deal With It
Based on what the inspector finds, you can sell it as is, or you can deal with the asbestos.
You could either have it encapsulated or enclosed, or you could go for full-on removal.
Encapsulation involves coating or sealing the asbestos materials with a protective barrier to prevent fiber release, while enclosure means creating an airtight barrier around the materials.
These options are generally more cost-effective (15%-25% less) than a complete removal.
However, they still require ongoing monitoring and maintenance to ensure the asbestos remains contained.
If the asbestos is in poor condition or located in a high-traffic area, full removal might be the best (and safest) solution.
This involves carefully removing and disposing of all asbestos-containing materials.
#3 Disclose The Problem And List The House
Once you've done an abatement or removal, it's time to list the house with a realtor.
Now you've to disclose the presence of asbestos (or the steps you've taken to address it) in writing, either in the sales contract or as a separate addendum.
Apart from that, the rest of the home selling process is the same.
You do the other repairs and renovations, list and market the house, negotiate the offers, buyer inspections and close the sale.
Selling A House "As-Is" With Asbestos
If you don't want to deal with the abatement or removal process yourself, you can still sell your house "as-is" with the known asbestos issues.
But this will deter many prospective buyers, especially those seeking conventional financing.
And you have to lower the asking price to account for the costs a buyer would likely incur for asbestos abatement or removal.
Or you can offer them a repair credit or concession at closing to help offset these expenses.
Now it might take a while to find a buyer. If you are in a hurry, you can always sell to a cash buyer. Cash buyers are investors or companies with the financial means to purchase a property outright, without the need for a mortgage.
Selling to a cash buyer can be great - you close the deal faster and have a higher chance it goes through. But their offers will be below market value.
Also Read: Tips to Selling Your House Faster
Bottom Line
Selling a house with asbestos isn't ideal, but it's not impossible.
The law says you have to tell them anyway, so let them know and decide how you'll deal with it - leave it alone, remove it, or adjust the price.
Asbestos might affect who wants to buy your house and how much they're willing to pay, but it won't stop you from selling.
FAQs
Can You Get A Mortgage On A House With Asbestos?
Getting a mortgage on a house with asbestos can be tricky.
Some lenders might not change their stance, while others may require an asbestos survey or evidence of asbestos removal or containment before granting your loan.
Do Home Inspections Check For Asbestos?
Standard home inspections typically don't check for asbestos. They focus on major systems and components of the house.
If you're concerned about asbestos, you'll need a separate asbestos inspection by a qualified professional.
Do You Have To Disclose Asbestos When Selling A House?
Yes, disclosing asbestos is mandatory in most locations when selling a house. You'll typically need to disclose it in writing, either in the sales contract or a separate document.
Not disclosing it can lead to legal trouble later.