Asbestos removal or treatment in older home

The industry calls that encapsulation -- and since asbestos-containing materials are an issue when they get into the air as dust particles, it will work for the time being. (Similar to lead paint -- fine when already installed, very problematic when it flakes off.)

You can push the issue down the road by encapsulating now (though I'm not sure about duct tape specifically); when the pipe needs to be worked on or replaced, though, you would have to go through a controlled asbestos abatement process. And if the insulation is old enough to contain asbestos, the pipe may be old enough to need work in the medium term, so consider that as you balance your options. I wouldn't consider it a deal-breaker, just something to be understood and managed carefully.

if you are planning on renovations in NYC that has to be filed with DOB - you will have to remove asbestos (not wrapping with duct tape), overvise It is a huge fine, removal of asbestos of any kind is very $$$$

just touching and wrapping that old,flaky pipe covering is risky,if you are concerned about your health.It is a much better long-term solution to have it removed by a licensed abatement contractor.If you are talking about a few dozens of feet,as would typically be found in a 1/2 family house,the cost could easily be less than 5K.I agree with your inspector;let the the current owners remove it,if possible.BTW,if you are getting a mortgage and your bank inspects the property,they will almost certainly insist that this work be done before they agree to the mortgage. good luck;be smart.