Real Estate Topics Forum :: View topic - how does asbestos affect home value and the appraisal

king

If asbestos is in the ductwork and the ductwork is filled with cement to contain the asbestos, the seller has to reveal this in the disclosure statement. Will this affect the marketability and appraised value of the home?

nemmar · Site Admin

The answer is yes, definitely any asbestos in a house or on the site will have a negative effect on the market value of that house. However, since the asbestos is hidden inside of the ductwork and covered in cement, then the ONLY way for an appraiser, home inspector, buyer, etc. to know that there is asbestos in the house is if the seller discloses that to them. Unfortunately, often sellers do NOT disclose details and problem conditions like that in their home. Even though it's illegal since it's fraud, you will find many sellers that will just keep silent and not say anything. A very thorough home inspector and appraiser will NOT be able to find that asbestos unless they're told about it. Inspectors and appraisers cannot take apart the ductwork and open the cement to see what's underneath, if they were checking the house without being told of the asbestos. So that is why it would go undetected. However, if the buyer's of the house ever found out later that the asbestos in the ductworks was not disclosed to them before they made the purchase, then the seller would have some big legal problems on their hands afterward.

If the appraiser is told about the asbestos then the appraiser will make a negative market value adjustment in their appraisal report (if they are thorough and professiona). The value adjustment would be what the appraiser considers a typical buyer in an "arms length" transaction would pay to remove the asbestos. This is because the vast majority of buyers would certainly want the asbestos out of the house.

From a home inspection standpoint, I can tell you this: Asbestos inside or on the outside of ductwork IS AN EXTREMELY HAZARDOUS SITUATION!!!!!! That means that even before the cement was used to cover the asbestos, there could have been asbestos fibers being blown THROUGHOUT THE ENTIRE HOUSE via the ductwork for years!!! This means the ENTIRE house MUST be checked by a LICENSED EPA asbestos contractor to do air and other samples do determine the health risk of any asbestos fibers in the ducts and inside the house. Just covering up asbestos does NOT eliminate the problem long-term because any type of covering put over asbestos will eventually wear and open at cracks and seams. Also, you need to determine if a licensed EPA asbestos contractor was the one who sealed the asebestos in cement OR did the homeowner do it themselves or have a non-licensed EPA contractor do the job. In that case, if the homeowner does NOT have a certification from a licensed asbestos contractor, then the cement work could have created even more problems for the seller and potential buyers.

Basically, you need to have that asbestos REMOVED from the home and ductwork by a licensed EPA asbestos contractor and obtain a completed certifcation proving it was done AND that valid air and other testing has confirmed afterward that the house is asbestos free and safe for the occupants.