Asbestos, home sales and renovations: What real estate agents need to know

How do you approach selling a home that may have asbestos? If your seller is considering a presale renovation, understanding the challenges and steps involved can make all the difference for a smooth transaction and a faster sale post-renovation. 

The possible presence of asbestos in a home may seem daunting for real estate agents and homeowners alike, but addressing it directly – going in with eyes wide open – can avoid costly delays while ensuring safety. 

What do real estate agents need to know about asbestos and what it takes for removal? Let’s break it down.

About asbestos 

Asbestos was once hailed as a miracle material for its powerful fire-resistant properties. As a result, it lingers in millions of homes built before the 1980s. According to the National Association of Home Builders, about 60 percent of our US housing stock was built before 1980.

Asbestos was widely used in construction materials until it was phased out in the late 1970s. It is often found in a range of building materials in older homes, making it a hidden hazard during renovations. 

Asbestos was used in AC ducting and drywall, as well as floor tiles and their adhesives, and can be present in insulation, roofing materials, siding, and even some textured paints. 

These materials were prized for their durability and fire-resistant properties, but their potential to release harmful fibers when disturbed makes them a critical concern during renovations.

The most common hotspot is popcorn ceilings. Also called stucco or acoustic ceilings, they are textured ceiling finishes popular in residential construction from the 1950s to the 1990s. It was dubbed "popcorn" because it has a bumpy, uneven surface that resembles popcorn kernels, created by spraying or painting the ceiling with a mixture of drywall compound and materials like polystyrene or vermiculite.

They served a purpose as the texture hid minor flaws, cracks, or uneven work. It also improved acoustics: The bumpy surface helped dampen noise and reduce echoes in a room. It was also faster, as applying a popcorn ceiling was quicker and cheaper than finishing a smooth, flat ceiling.

While not all popcorn ceilings contain asbestos, many do. While the US Environmental Protection Agency (EPA) banned spray-applied asbestos for decorative purposes, such as popcorn ceilings, in 1978, manufacturers were permitted to use existing supplies.

Homes built in the 1980s and early 1990s often incorporated materials containing asbestos, including ceiling textures, flooring tiles, adhesives, and insulation, as older supplies were being used up.

Keep in mind that asbestos isn’t inherently dangerous when left undisturbed. But if a buyer or seller is remodeling, and asbestos is disrupted, it could release harmful fibers into the air, posing serious health risks, such as asbestosis and mesothelioma.

Testing is the first step

Asbestos testing is crucial at the start of any renovation. It’s not just a smart move – it’s essential. Disturbing asbestos without using a firm experienced with removal can escalate costs and delay timelines, turning a manageable issue into a potential financial and logistical nightmare.

Testing costs are manageable: roughly $50 per sample with an average of six to ten samples per home, commonly $500 for initial home testing. Clearance tests by third-party companies, which ensure the abatement was done correctly, range from an additional $150 to $200 per area.

Planning for testing upfront is the key. If asbestos is discovered mid-project, costs can skyrocket due to emergency containment, additional cleaning, and project delays. Worse yet, mishandling asbestos could result in costly disclosures during the sale process—or potentially legal ramifications.

Asbestos disclosures + timelines

Asbestos isn’t just a renovation concern, it’s also a disclosure issue. If a home’s asbestos presence isn’t addressed before listing, it could derail a sale. Buyers might overestimate the dangers or costs, leading to renegotiations, price reductions, or even failed deals.

Moreover, contrary to popular belief, asbestos abatement doesn’t have to balloon a renovation timeline. For a typical home, the process can take as little as a week and a half from start to finish. This includes setting up containment zones, removing the asbestos, running air purifiers for a few days, and completing clearance tests.

In many cases, abatement can be scheduled to run concurrently with other renovation activities, minimizing delays. Asbestos should not be a deal-breaker. When planned properly, it’s just another step in delivering a safe and beautiful home.

Choosing the right professionals

One of the biggest pitfalls a homeowner faces is when a contractor without asbestos experience offers to handle its removal. Improper abatement can lead to incomplete work, additional costs, and failed clearance tests. Hiring a reputable asbestos abatement firm with a proven track record is critical.

Third-party clearance tests ensure the work was done correctly and safely. Cutting corners by skipping this step or using unverified contractors often results in higher costs in the long run. Hiring the right company can mean the difference between a smooth process and a costly redo.

Educating your clients: As a real estate agent, you're uniquely positioned to guide your buyers and sellers through the asbestos challenges. How can you add value?

Encourage testing: Recommend asbestos testing for homes built before the 1990s as part of any renovation or presale preparation.

Set realistic expectations: Share ballpark figures for abatement costs and timelines to help clients budget appropriately and understand that the abatement process isn’t excessively expensive and is manageable. 

Highlight the benefits: Emphasize that addressing asbestos upfront can increase a property’s marketability and reduce potential roadblocks during the sale process.

You deliver more value by helping your clients understand asbestos while building trust.

Peace of mind starts with preparation

Asbestos isn’t a relic of the past; it’s a present-day consideration for millions of homeowners. Proactively addressing asbestos can position a property as “move-in ready” and safe, giving buyers peace of mind. Taking care of asbestos upfront isn’t just about compliance; it’s about creating a frictionless sales process. It’s one less hurdle for everyone involved.