Homeowners or those living in homes built before the early 1980s have properties that may potentially contain asbestos or asbestos-containing materials. If you are planning on buying or selling a home that was built in the mid-1970s or earlier, it may be a smart move to have an asbestos inspection or assessment done by an experienced, local environmental hazard company.
There are some significant ways in which asbestos can impact home value. We’re going to look at some of these ways, as well as answer the question of whether or not removing asbestos can increase home value. We’ll also cover a few tips on how to handle a home with asbestos, either living in it or preparing to buy or sell the home on the market.
What Is Asbestos?
What was first praised as a “miracle mineral”, asbestos is a group of several minerals that have considerable flame and heat-resistant properties. They also don’t conduct electricity, and as a result, asbestos was used in a wide variety of commercial and residential building and insulation applications. It was used to strengthen cement, and it was used to make fire-resistant ceiling tiles. It was used in homes, businesses, churches, schools, and government buildings.
Eventually, the danger was realized, when those exposed to friable asbestos developed illnesses and cancers decades later. Mechanics that were exposed to the fibers in brake pads were affected, just as plumbers who often worked around asbestos pipe insulation. There was a partial ban on asbestos put in place by the EPA, but it hasn’t been able to restrict and remove all asbestos products.
Does Removing Asbestos Increase Home Value?
When it comes to putting a property on the market and selling it, having to disclose an asbestos presence can have a negative effect on the value of the home. If a disclosure is needed, then it can often have a beneficial effect on the home value to have already abated the asbestos issue and have proof of the abatement for potential buyers. This can not only avoid potential buyer leverage to reduce the price but it can even be used as seller leverage for higher prices if comparable homes in the area haven’t had abatement performed.
The biggest drawback that many people see is that there is no DIY treatment or approach to dealing with asbestos. This means once you have confirmed the presence of asbestos-containing materials you either must then disclose that to potential buyers, or have it abated. Abatement must be done by a company that is certified by the EPA to safely contain and remove the asbestos from a contaminated site. There are many ways it can be done, and it can cost anywhere from just a couple thousand dollars to more than $20,000 in extreme cases.
The Relationship Between Asbestos And Home Value
In some cases, people looking at potentially buying a home or property with asbestos may be able to use that to put downward pressure on the price. Asbestos and home value don’t always have to be a relationship in the seller’s favor. The buyers can sometimes negotiate a considerable reduction in price if they agree to buy the property without abatement. This can require abatement costs later that may or may not be covered by homeowners insurance, but in many cases, it can create a significant discount on a property.
Partner With Sensitive Environmental For Your Asbestos Needs
Whether you need someone to come and test your building for signs of asbestos, or if you know there are asbestos-containing materials on site and need a professional to help clean them up, Sensitive Environmental is here for you. Reach out today to discuss your needs with a member of our local team.