oil heat (sale, to rent, how much)

[shishu]

Hi,
I am looking at a house, which meets our requirements but has an underground oil tank. I have been advised by friends to stay away from such houses. I would appreciate your point of view? How much would it cost to change the heating to natural gas?
Thanks,

K

[wileynj]

Originally Posted by shishu

Hi,
I am looking at a house, which meets our requirements but has an underground oil tank. I have been advised by friends to stay away from such houses. I would appreciate your point of view? How much would it cost to change the heating to natural gas?
Thanks,

K

I think they mean because there is a tank in the ground. The sellers should have this removed and replaced with an above ground tank. Converting the system can be expensive - depends on whether you have forced air, hot water baseboard, etc. But if you like the house, have you lawyer tell their lawyer to remove and replace the oil tank. They should have done this before they listed!!! No one ever listens : ))

[shishu]

how long does it normally take to remove the tank from the ground?
I was told by my realtor that it involves state permits that might take a long time and delay the closing significantly

[sheluvsfootball]

My tank is in ground and I should have converted a few years back. Some quick estimates I've been given was 5-6k give or take.

[sheluvsfootball]

PS If u like the house above all others, buy it and factor the price of converting into your offer. The market is so poor that most sellers know they have to be flexible. My listing just expired last week and I am officially looking to rent my home because after almost a year, I just need to move on and wait the market out. You are definitely in a position to negotiate.

[Diane Giam]

Originally Posted by shishu

Hi,
I am looking at a house, which meets our requirements but has an underground oil tank. I have been advised by friends to stay away from such houses. I would appreciate your point of view? How much would it cost to change the heating to natural gas?
Thanks,

K

Tell them you'll consider it, but they need to have it removed . If it has a hole, don't buy the house.
If your considering buying it, I would check to see if anyone will insure it, when its still in the ground.
Its about $1500 to take tank up and also the cost of a new above ground tank. I bought the top of the line on that, with a $1 million dollar unbrella policy on it. I think I paid $1200 for it. It looks like a small shed rather than a oil tank. It's called a Roth.Overview Double Wall Fuel Oil Safety Tank-the safest oil tank with a 1 million dollar clean-up policy-Roth Industries

Diane G

[joe moving]

What type of heat does the house currently have?

I don't think it costs that much to remove and I think a permit could be had in a week or so (?)

[wileynj]

Originally Posted by shishu

how long does it normally take to remove the tank from the ground?
I was told by my realtor that it involves state permits that might take a long time and delay the closing significantly

Your realtor is an "ass". Sorry, but he/she is way off and I don't like the fact that it appears that they are trying to intimidate you into pushing ahead with the sale because this will delay the closing! Depending on the Township - not State!, it typically only takes a week at most for the permits and the removal and install is a one day project!

[wileynj]

Originally Posted by Diane Giam

Tell them you'll consider it, but they need to have it removed . If it has a hole, don't buy the house.
If your considering buying it, I would check to see if anyone will insure it, when its still in the ground.
Its about $1500 to take tank up and also the cost of a new above ground tank. I bought the top of the line on that, with a $1 million dollar unbrella policy on it. I think I paid $1200 for it. It looks like a small shed rather than a oil tank. It's called a Roth.Overview Double Wall Fuel Oil Safety Tank-the safest oil tank with a 1 million dollar clean-up policy-Roth Industries

Diane G

The Roth tank is nice but they have been having issues with them lately... I would either go with a Roth or the new polycoated Granby Steel Tank - I think the warrantee is 20 yrs. vs. Roth's 10 yr. Important things to consider are - inside or outside for the new tank? I would try to have it installed inside if possible... basement, garage, etc. It will add to the life of the tank.

[gman711]

Originally Posted by shishu

Hi,
I am looking at a house, which meets our requirements but has an underground oil tank. I have been advised by friends to stay away from such houses. I would appreciate your point of view? How much would it cost to change the heating to natural gas?
Thanks,

K

I don't think you need to stay away from a property with a tank, but be sure to do your proper due-diligence and some preliminary research before you commit to buy it. First, you need to find out some additional information: 1) How old is the tank? 2) Has there been a number of tanks removed in this neighborhood and if so, how many have leaked and how bad was the leak? You can start by making a phone call to the building inspector at the township or better yet; go to their office and ask them the information related to #2 above. The should be able to answer the question based on permits filed for tank removal, their observations of the tank conditions at the time of the removal and any follow up permits submitted related to any significant remedial projects in that neaighborhood. You can also search the NJDEP Site Remediation website to see if there are a number of cases in that neighborhood. As a quick and rather inexpensive indicator, the best option is to have a qualified environmental consultant complete soil borings around/under the existing tank to determine if there is evidence of any discharge from the tank. Costs for such an investigation would range from about $400 to $600. To remove the tank & replace it with an aboveground tank would range from about $2,000 to $3,500 depending on site accessibility and other site-specific conditions, but its still cheaper than converting to gas. Hope this helps!