You shouldn't have asbestos problems in a 13-year-old house. Its used ceased long before that.

DalTile and American Olean are widely available tile that's decent. I'd avoid the $.69/square foot stuff some stores use to draw people in. They're usually thinner, fake looking, and color is only on the surface. Through-body color is better to work with (if it chips, there won't be clay color showing through).

Since you're focused on resale, I'd pick a neutral in the beige family. Buy a few samples and hold them next to your carpet and hardwood.

HD around here charges $5/sq ft for basic install. Doing it on the diagonal, in patterns, accent pieces, and who knows what else add cost.

The experts say diagonal makes a room look bigger. Personally, I think diagonal just looks more current.