Radon Blog

Navigating Radon in Real Estate Transactions in Minnesota: A Buyer and Seller's Guide

If you're buying or selling a home in Minnesota, there’s one important consideration that has gained prominence in recent years: radon. This naturally occurring, radioactive gas can seep into homes, and long-term exposure to high levels can increase the risk of lung cancer. Given Minnesota's elevated radon levels, addressing this issue has become a key part of real estate transactions. Here's how buyers and sellers can navigate the radon discussion—particularly when it comes to finalizing the purchase agreement.

Radon Levels in Minnesota

Minnesota is known for having some of the highest radon levels in the U.S., with roughly 2 in 5 homes exceeding the EPA’s recommended action level of 4.0 picocuries per liter (pCi/L). This makes radon testing and mitigation an important factor during the home-buying process.

For buyers, it’s crucial to ensure the home is safe from radon exposure, while for sellers, addressing radon concerns may feel like a potential complication. The real challenge often arises when both parties try to negotiate the terms of the purchase agreement regarding radon, especially if high levels are detected during inspection.

Radon Challenges in the Purchase Agreement

The purchase agreement is where buyers and sellers settle all critical details, and radon mitigation often becomes a key negotiation point if elevated levels are found. Let’s look at some of the common challenges faced during this process:

1. What Happens If Radon Levels Are High?

When a radon test comes back with high levels, the next step is deciding who will handle and pay for the mitigation system. Radon mitigation systems typically cost between $1,000 and $2,500, and this cost can become a sticking point in negotiations. Buyers want to ensure the home is safe before moving in, while sellers may not want to shoulder a sudden expense they hadn’t anticipated.

A common solution is for both parties to negotiate, with sellers offering credits or agreeing to pay a portion of the cost at closing. This way, the issue is addressed without derailing the sale. Another option is for the seller to install a mitigation system before closing, ensuring the home is radon-safe by the time ownership transfers.

2. Timing Issues

Testing for radon typically requires a 48 to 72-hour period for short-term results. In fast-moving real estate markets, this can sometimes create time pressures, especially if the results come back close to the closing date. Buyers may feel rushed to make decisions, and sellers might worry that last-minute radon results could cause the deal to fall through.

To avoid surprises, sellers may consider testing for radon before listing the home. This allows them to handle any mitigation early in the process and gives buyers peace of mind. For buyers, it’s helpful to build enough time into the purchase agreement to allow for testing and any subsequent mitigation discussions without causing delays.

3. Disclosure of Radon Levels

Minnesota law requires sellers to disclose any known radon levels and indicate whether a mitigation system is already in place. Although there is no legal requirement to conduct radon testing before selling, any known issues must be shared with potential buyers. Buyers, in turn, need to carefully review this disclosure and should still have a radon test performed during their home inspection to ensure there are no hidden concerns.

Strategies for a Smooth Transaction

Addressing radon during a real estate transaction doesn’t have to be stressful. Here are some strategies for ensuring a smoother process for both buyers and sellers:

- Sellers: Be Proactive. Consider testing for radon before listing your home. If high levels are found, installing a mitigation system can prevent the issue from becoming a point of contention later on. This not only protects the value of your home but also gives potential buyers one less thing to worry about.

- Buyers: Be Clear and Direct.  When submitting an offer, make it clear that you’d like radon testing to be part of the inspection process. Outline what you expect if high levels are detected—such as requesting a mitigation system or a seller credit to cover part of the cost. Approaching the conversation with clear expectations will make negotiations smoother.

- Both Parties: Use Experienced Professionals. A real estate agent familiar with radon issues can help ensure that the purchase agreement addresses radon in a fair and reasonable way. Likewise, working with qualified radon testers and mitigation professionals can give both parties confidence that the issue is being handled properly.

 Conclusion: Radon in Minnesota Real Estate

While radon may seem like a complicated issue, it doesn’t have to derail your real estate transaction. By approaching radon concerns openly and reasonably, buyers and sellers in Minnesota can work together to ensure the safety of the home while closing the deal successfully. With clear communication, early testing, and flexibility in negotiations, addressing radon can be a straightforward part of the buying or selling process.