Due Diligence Period

[Collin Baumann]

Hey all,

So my wife and I are super excited. We are under contract on a Single Family Home with a legal accessory apartment. We are going to take advantage of this and house hack it. We are currently in our due diligence period and I have two things I want to narrow down on. The downstairs has a small section of popcorn ceiling. I want to remove it and I know their are red flags about asbestos? I am planning on getting it tested for asbestos. If it doesn’t have asbestos I will do all the work myself in removing it and redoing the ceiling. If it does however I am not sure what to do? Has anyone ever had that?

Also the home was built before 1978 which means it is likely that it was built using a lead based paint which has since been painted over. I plan on renovating a portion which will involve the removal of a wall. I understand this may raise some red flags for the city? Any one know how to navigate through that?

[Blair Poelman]

I wouldn't expect any substantial discount based on the house having asbestos - especially in this market.  Even a semi-smart seller is going to reject any kind of discount simply based on the house having asbestos.  There's enough demand right now that the seller would rather have you cancel and the next person will come along this weekend and probably not care about asbestos.

It's safe to assume that if a house was built between the 1930's and the 70's some kind of asbestos-containing product was used in the construction.

Also keep in mind that if you get it tested and there is asbestos (i.e. you know about), you must disclose that fact when you sell it down the road.  If the asbestos-containing product or surface is in good shape, the mere existence is not nearly as big of an issue as most think it is.  If the surface is degrading and chipping away, or is starting to flake and get dusty then it is a problem.

Lead paint is inevitable - it's not a big deal, there is a proper way to deal with it and it's relatively simple.