Oil Heat vs. Gas Heat

**Drew** · 02-22-2010, 01:08 PM

As we consider replacing our heating system, which is oil, we are considering whether it is worthwhile to convert to gas. We really like our oil system, but wonder whether converting to gas might add value to the home.

To all the realtors out there, are homes with gas heating systems easier to sell? Does having gas rather than oil add any value to a home?

Thanks!

**BeardScraper** · 02-22-2010, 01:11 PM

one factor to consider is how accessible is your oil tank, in case you need any work done or have to remove or replace it. just a thought.

**OutOfContext** · 02-22-2010, 01:11 PM

I'm not sure of how it relates to home value, but my neighbor isn't able to sell him home because he spilled heating oil in the basement 10 years ago...

The smell has never left and now it's just a rental...

Sorry, just felt like adding that.

**billy ross** · 02-22-2010, 02:43 PM

Originally Posted by Drew

As we consider replacing our heating system, which is oil, we are considering whether it is worthwhile to convert to gas. We really like our oil system, but wonder whether converting to gas might add value to the home.

To all the realtors out there, are homes with gas heating systems easier to sell? Does having gas rather than oil add any value to a home?

Thanks!

If you really like your oil system, why are you considering replacing it? That's like saying that you really like your wife, but you are considering replacing her.

In my opinion the price of oil is about as low as it's going to be for the next three years at least. As the economy comes out of recession, the price of oil will jump. As the dollar drops, the price of oil will jump. Both will happen as we go forward from now.

I would either leave it alone or switch to gas. I wouldn't put in a new oil-fired heating plant.

**jen** · 02-22-2010, 03:26 PM

my understanding is that oil heat ends up being cheaper thanks to the remarkable ineptitude of PGW. they apply (and seem to get) significant rate increases every year. those of us who do pay our bills pay FAR MORE than we should to make up for the vast number of customers who don't.

i would suggest you find a homeowner with similar square footage to yours and ask about their PGW experience/bills before switching to gas.

**JIDinPhilly** · 02-22-2010, 03:39 PM

Originally Posted by Drew

As we consider replacing our heating system, which is oil, we are considering whether it is worthwhile to convert to gas. We really like our oil system, but wonder whether converting to gas might add value to the home.

To all the realtors out there, are homes with gas heating systems easier to sell? Does having gas rather than oil add any value to a home?

Thanks!

What I would do is put a solar heat/hot water system in. It is perfect for you if you use radiators. You can still keep the oil system, but use a hell of a lot less of it. And you get a 30% federal tax credit.
My company is New Jersey Solar Installers .

**billy ross** · 02-22-2010, 07:28 PM

Originally Posted by jen

my understanding is that oil heat ends up being cheaper thanks to the remarkable ineptitude of PGW. they apply (and seem to get) significant rate increases every year. those of us who do pay our bills pay FAR MORE than we should to make up for the vast number of customers who don't.

i would suggest you find a homeowner with similar square footage to yours and ask about their PGW experience/bills before switching to gas.

This is much less true than in the past. The word on the street is that PGW hired people from Philly Electric to teach them how to deal with collections issues. Either way, now PGW is super-strict about people not paying for their gas bills. During the mismanagement era PGW built up a huge debt ($1.2 billion), which of course needs to be serviced, but the wholesale price of natural gas has plummetted due to new methods of extracting the gas, and also due to the fact that the best place to produce gas on this continent is right here in PA, meaning that pipeline costs are minimal. So we are paying very little for our wholesale gas, and this looks to continue on for quite some time, but we are paying alot to pay for debt caused by past mismanagement of PGW. The good news there is that PGW is paying extra on its 'mortgage' to retire $400 million of it within five years, so that five years from now PGW will have much less debt to service, thus reducing its cost structure.

**Geno** · 02-22-2010, 08:09 PM

I moved from a house with gas to a house with oil just under 2 months ago. I thought gas was expensive until I moved. In my experience, oil is significantly more expensive.

**JohnnyTightlips** · 02-22-2010, 08:59 PM

Originally Posted by Geno

I moved from a house with gas to a house with oil just under 2 months ago. I thought gas was expensive until I moved. In my experience, oil is significantly more expensive.

I agree! My wife and I are in the process of moving from a gas house to an oil house and the bill from last month for gas was much cheaper than what a monthly supply of oil just cost me, and we're not even fully moved into the oil house so the heat is on pretty low. We're talking 50% more for the oil...

**azion** · 02-22-2010, 09:38 PM

Don't overlook the house itself when you consider heating costs. A well-insulated house will cost less to heat (or cool) than a poorly-insulated one. And, here in MA, you have lots of older houses, some of which are not very well-insulated.

-Z

**Geno** · 02-22-2010, 09:39 PM

I would agree. About 50% higher is accurate in my experience too.

**Geno** · 02-22-2010, 09:42 PM

Originally Posted by azion

Don't overlook the house itself when you consider heating costs. A well-insulated house will cost less to heat (or cool) than a poorly-insulated one. And, here in MA, you have lots of older houses, some of which are not very well-insulated.

-Z

The house I left in the NE was very similar in size and age to the one I am in here in Mt Airy. If anything, the house here is more air tight due to better windows. I honestly found the price of oil heat to be shocking.

**Gen 3 Electric** · 02-23-2010, 09:04 AM

I switched from oil to gas about two years age. I did not notice a huge jump in heating cost. The oil heater was nosier and seemed to make more dust. I am much happier the the gas heater I replaced it with.

**billy ross** · 02-23-2010, 10:46 AM

Originally Posted by Geno

The house I left in the NE was very similar in size and age to the one I am in here in Mt Airy. If anything, the house here is more air tight due to better windows. I honestly found the price of oil heat to be shocking.

Get your oil from Oil Patch - they'll give you a good deal. Ask for Mark Antico. I've tried alot of suppliers in the past, and Oil Patch has the lowest cost structure. They do it by selling oil at the spot price, and doing COD only. They accept credit cards, but they have no credit losses, and they don't worry about fluctuations in the spot price of oil - they just pass it on. The pay as you go doesn't bother me - if oil really spikes then I'll rip out my few remaining oil heaters, and I like getting a good price while I'm waiting out the life of the oil heaters.

**billy ross** · 02-23-2010, 10:48 AM

Originally Posted by Gen 3 Electric

I switched from oil to gas about two years age. I did not notice a huge jump in heating cost. The oil heater was nosier and seemed to make more dust. I am much happier the the gas heater I replaced it with.

I also despise the smell of oil (if it leaks even a little bit), and the soot. They're both very unpleasant, and gas has neither. Plus, gas comes from Pennsylvania, so your money is not going to some bloodthirsty dictatorship so they can kill their citizens. It actually might come back into your own pocket.

Oil is a dead soldier, if you're on the grid.

**Gio7707** · 02-23-2010, 12:57 PM

Forget about all the increase of rates, here is the new solution :

Bloom Energy | Be the solution

**BeardScraper** · 02-23-2010, 03:16 PM

what is this? is this an "end of the world" scare tactic?

**NWPhillyRealtor** · 02-23-2010, 08:02 PM

I have oil heat and do not think that having one or the other matters as far as values go. I don't have buyers walk out because a house has oil heat, or say they aren't interested in a house because it has it. The condition, updates, location etc. are the factors that are most important in determining value. there are some buyers who really prefer gas cooking though and that is an item on their checklist, but for everyone of those there are at least 10 buyers that don't seem to care either way.

**ArcticSplash** · 02-23-2010, 08:25 PM

The newest gas furnaces come in a very wide range of efficiencies. Some of them use low-energy blowers (OK if your house is small) or if you got a lot of area to cover, a monster blower.

I switched from a gravity-convection gas furnace that was 70 years old to a brand new forced-air gas furnace. My January gas bill dropped about 30% for January this year vs. last year and my gas consumption seems to be consistently lower.

Just the digital thermostat alone and the electric starter (no pilot light needed) were enough to drop my PGW bill.

I'd probably save even more if I had new windows and a new bathroom skylight to keep the heat from escaping. I winterized the windows the same from last year to this year.

**ArcticSplash** · 02-23-2010, 08:29 PM

Originally Posted by NWPhillyRealtor

I have oil heat and do not think that having one or the other matters as far as values go. I don't have buyers walk out because a house has oil heat, or say they aren't interested in a house because it has it. The condition, updates, location etc. are the factors that are most important in determining value. there are some buyers who really prefer gas cooking though and that is an item on their checklist, but for everyone of those there are at least 10 buyers that don't seem to care either way.

Eww electric ranges and ovens are teh suck. I hate 'em. Once you're cooking with gas you never want to go back.

Now that I know what oil heat costs I will probably pass on any house that has it unless the seller would be willing to come down a few grand to go towards the cost of getting rid of it. If not that's ok... as you say there's a mountain of other buyers who don't mind.