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I bought a house in Lincoln about 9 months ago. It has an ancient (from the 1930's or 1940's) oil steam boiler. It works, but it's not very efficient and it looks ugly. I plan on selling the house and moving in 3 years and I know that it's going to be a problem for buyers. I know that lots of people are switching to gas, but it takes a lot of upfront money for installation and relining the chimney and all that. Including installation, it'll probably be about $6000 for a new gas boiler, or about $2000 for a new oil boiler. What would you do?
Most houses in RI that use oil or propane have it because there was no gas service available when it was built. Gas is a pretty big selling point these days. The average gas customer in 2012 saved about 70% over what they would have paid to heat their house with oil. Natural gas production in the US is booming while domestic oil production is strictly regulated. I think gas is going to be the value heat source for awhile, and buyers will be asking for it.
If the gas line is in front of your house then I would convert it. Good luck!
If you're selling in 3 years my advice would be to do nothing. You won't see much appreciation in 3 years and you'll lose money by investing a lot at this point.
Tough call. If you were staying, I'd say definitely switch to gas.
I did it a few years back and am really glad I did. We definitely save a lot of money on heating and it's nice not to be subject to the crazy price spikes in oil.
But you won't make back your money in just three years. A new gas furnace makes your house more attractive to a buyer, but an oil furnace isn't likely to be a deal breaker to most people. In an area with older houses, like eastern Cranston, they're quite common.
I bought a house in Lincoln about 9 months ago. It has an ancient (from the 1930's or 1940's) oil steam boiler. It works, but it's not very efficient and it looks ugly. I plan on selling the house and moving in 3 years and I know that it's going to be a problem for buyers. I know that lots of people are switching to gas, but it takes a lot of upfront money for installation and relining the chimney and all that. Including installation, it'll probably be about $6000 for a new gas boiler, or about $2000 for a new oil boiler. What would you do?
I just had a total new 3 zone natural gas boiler/baseboard heating system installed for a 2900 sq ft house to replace and all electric baseboard system that had been in the house I bought since it was built in 1972. The bid quotes I received were all over the place and varied from $15k to $35k. I went with the top rated Angie's list recommendation for the Providence/northern RI area, which happily happened to be the $15k bid. The boiler was direct vented, no flue required. Also, the gas boiler alone qualified for an $800 rebate. That old oil steam boiler will likely be a problem when you sell. The buyer may deduct the cost of a new system from his offer.
I just had a total new 3 zone natural gas boiler/baseboard heating system installed for a 2900 sq ft house to replace and all electric baseboard system that had been in the house I bought since it was built in 1972. The bid quotes I received were all over the place and varied from $15k to $35k. I went with the top rated Angie's list recommendation for the Providence/northern RI area, which happily happened to be the $15k bid. The boiler was direct vented, no flue required. Also, the gas boiler alone qualified for an $800 rebate. That old oil steam boiler will likely be a problem when you sell. The buyer may deduct the cost of a new system from his offer.
If the OP had a home inspection before he purchased the property, he should have been aware the home needed a new heating system and deducted the cost accordingly before contracting to buy. An old steam boiler system will certainly be a problem the next time around, and doing nothing in the interim, will be very costly over three years in addition to taking a hit when he sells. The OP already knows it will be a problem for the next buyer. Even $100 a month more (conservative estimate) for oil will be $3600 over 3 years at a minimum. Even if he breaks even 3 yrs. from now on sale price, he's still fine. No one has a crystal ball to know how the market will be at that time.
If you're doing a major renovation on the house hoping to increase its value (by thousands), then it might make sense. But if that's mostly all the upgrading you're going to do, then someone is not likely to pay much more for the house than you just did. And, in three years, at least go with an entry only MLS listing before you list with a realtor. You could cut the commission significantly.
First, the rule of thumb is not to buy unless you are going to remain in a home 5 years or more... some RE experts are now saying it should be 7 years.
That aside, take two identical properties, in the same condition - one has gas the other has oil. In today's market which do you think will sell first?
Now I had two identical duplex rental units. One heated with oil, the other natural gas. The yearly heating costs on the natural gas unit where half of the oil unit. Both heating systems were of rather ancient age and when I switched insurance companies, the new company required my replacing them. Once replaced, the heating bills dropped by 80% in the former oil heated unit, another 35% in the gas fired unit.
You didn't say how large the home is or if you've had an energy audit done. There are rebates available for conversions.
As someone who owned and manged a heating and air conditioning company in CT for years, I was asked this question a thousand times. Every time I would answer it really depends on your situation. First of all, if your house is poorly insulated with bad windows and doors, converting from one to another really won't matter a tremendous amount. If you want great mileage out of your vehicle, you don't replace the carburetor on your V-10 truck, you buy a truck with a V-6. Insulate everything as best as you can, and replace your exterior windows-doors, if possible. It makes for better re-sale than a new furnace. Secondly, it depends on the efficiency and what you are willing to spend on a furnace. Most all of your oil furnaces are 82%-85% efficient, no matter what anyone tells you. "Tweaking" the oil burner nozzle to low-fire the boiler will get you at the higher range of efficiency, but in your case - steam and an old house - forget it. If you go with a standard atmospheric vent (flue) gas furnace, your efficiency will be about the same as oil. But keep in mind, with gas, it is true and you may have to have your chimney relined. Building inspectors are very "up" on chimney condition these days. I've relined a few oil furnace chimneys over the years also, especially in old houses. Local inspectors found the existing clay liner (if there was one), not to their liking.
If your willing to go the extra mile and spend some money, I would recommend the switch to gas but to a condensing gas boiler. High efficiency, 92%+++, and no need to worry about a chimney liner as your boiler flue gases are exhausted directly outside the home, usually with a 3" PVC pipe. Most manufacturers offer lifetime heat exchanger warranties on their condensing boilers, another upside to the switch.
Last of all is Natural vs. Propane gas. If you are in a Natural gas area, check with your local gas company for any special offers they may have for the switch. Some give out free water heaters and others may offer special service rates. In CT a few years ago, one gas utility company offered a full service insurance policy on any gas appliance in your home, including the gas grill, for a couple hundred bucks. Meaning if it broke, they would fix it free of charge. A really great deal. If you are going with propane, BE VERY AWARE!! Propane companies are an un-regulated ripoff, in my opinion. I've butted heads with many in my career, throwing a few off job-sites. I've also written several letters to the Dept. of Consumer Protection about them. They sound so good in the beginning with their polished sales pitches, but what the fail to mention is it's "THEIR" tank, you rent it, and therefore you buy "THEIR" gas and pay "THEIR" price. Can you imagine going to a local Chevy dealer and buying a new car, only to find out the gas cap has a lock on it and only 1 gas station has the key, meaning you have no choice but buy their gas! Whatever you do, shop around and buy the tank if you can. If it's your tank, you can shop for pricing. If they own it and you "lease" it, your under their thumb, sorry to say.
Hopefully this helps in your decisions. Good Luck!
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