Is it hard to sell a house with oil heat?

Author: Connie Fay  |  Last update: Monday, December 8, 2025

Selling a house with an oil tank can make both the owner of the house and the Realtor pull their hair out. For right or for wrong houses with oil tanks carry a stigma that can reduce the curb appeal of a home.

Is it worth buying a house with oil heat?

You Can Save Money on Fuel

If you ask homeowners if it is worth buying a house with oil heat, there's a good chance they'll say “yes.” This is due in part to the fact that oil heat is highly energy efficient. In today's day and age, oil-powered heating systems are known to have an efficiency rating of 95%.

What are the downsides of oil heat?

The Cons of Oil

Upkeep: Oil produces soot and grime that builds up over time. If not well maintained, uncleaned furnaces can also leak and clog. Regular repairs may be necessary to avoid further issues. Size: Heating oil requires an on-site storage tank, which can take up a decent amount of space in the home.

Can you sell a house with an oil tank?

It can be sold as long as the buyer knows there's an oil tank in use. They would also have to purchase the remaining oil in the tank at closing from seller. Buyers would also make sure the tank is not leaking and there's no soil contamination.

Should I get rid of my oil furnace?

Switching from oil to other forms of heating can provide several benefits, including lower energy bills, improved comfort, and reduced environmental impact. For example, heat pumps are highly efficient and work well in mild to moderate climates.

Warning if Buying a Home with Oil Heat

How much does it cost to get rid of oil heat?

A larger, more complex home will of course cost more than a small apartment. However, to give you a ballpark figure, many homeowners may expect to pay anywhere from $6,000 – $15,000 to switch from an oil to a gas-fired heating system.

What is the average life of an oil furnace?

Its lifespan is dependent on how often you maintain it. The life of an oil furnace can be anywhere from fifteen to twenty years, depending on its maintenance. In fact, the average oil furnace will last up to 20 years if properly maintained.

Are oil tanks covered on house insurance?

The only way the spilling or leaking of your fuel oil would be covered is if the damage was caused by a peril covered by your homeowners insurance. This could include a fire or a lightning strike. If the tank is leaking alone, the damages will not be covered.

How much does it cost to clean up a heating oil spill?

The average cost (small cleanup) for cleaning up a residential heating oil tank leak can range from $4,500.00 to $15,000.00 dollars. In most cases, homeowners' insurance will NOT pay for the remediation costs.

Can a homeowner remove an oil tank?

Many contractors will take care of this for you — but if you're feeling up to it, you can always do it yourself. The important thing is to ensure that the oil does not end up in landfills or groundwater sources.

What is the average heating oil bill per month?

The average monthly home heating oil bill is $154.92. Your average monthly propane bill will run about $134.86, again, with considerable variation by location, provider and the heating efficiency of your home.

Is oil heating outdated?

In summary, heating oil is far from outdated. With its advancements in efficiency, environmental sustainability, and cost-control options, it continues to be a competitive and reliable choice for heating.

What are 3 cons about oil?

Cons of Oil
  • Oil Energy Produces Toxic Gases. The use of oil in energy production results in the release of various gases. ...
  • Oil Leaks Are Possible. The drilling and transportation of oil is a risky business. ...
  • Drilling For Oil Is Dangerous. ...
  • Oil Is Nonrenewable. ...
  • It Can Cause Conflict. ...
  • Oil Exploration Takes Time.

What are the downsides of oil heating?

Con: Oil Furnaces Require More Maintenance

Oil furnaces experience a variety of problems regularly, because of factors such as soot buildup. These can include puffbacks, leaking fumes, and clogs from a faulty burner. Gas and electric furnaces require far less maintenance.

Are home heating oil prices going down?

Basic Info. US Residential Heating Oil Price is at a current level of 3.918, down from 3.925 last week and down from 4.044 one year ago. This is a change of -0.18% from last week and -3.12% from one year ago.

Is it worth switching from oil to gas?

One of the most compelling reasons to switch from oil to gas is the environmental impact. Natural gas is a much cleaner fuel compared to oil. By converting, you can reduce your home heating carbon emissions by up to 50% .

How often do oil tanks leak?

While some underground heating oil tanks have lasted longer, a common life expectancy of buried underground oil tanks is approximately 10-15 years. The odds of a leak happening increase, as the tank gets older.

How do you get rid of heating oil?

One of the best ways to get rid of your old furnace oil is by recycling it. Some used oil can be reused, or it may be refined into lubricants, fuel oils, or raw materials for other uses. Companies that offer oil-related services will be able to provide you with a full understanding of your options.

What happens when oil leaks into the ground?

A larger spill of oil has the potential to contaminate a lot more soil and groundwater. In this case, both soil and groundwater need to be assessed and possibly cleaned up. This is likely to involve specialist environmental contractors that may be appointed by your insurers.

Can you sell a house with an old oil tank?

If you want to sell your house in the future, you should have your unused oil tank removed. Most mortgage lenders are making removal of an unused oil tank a condition of sale even if the tank has been disconnected for less than 24 months.

What is the life expectancy of an oil tank?

On average, a well-maintained heating oil tank should last around 10-15 years before it causes any trouble. Once the oil tank has hit this age, it's time to start budgeting for a new heating oil tank installation. Talk to your local oil tank replacement professionals about your options —that's us!

Should I buy a house with an oil tank?

One of the most significant reasons to avoid a property with an underground oil tank is the potential for environmental contamination. Over time, these tanks can corrode and develop leaks, releasing oil into the soil.

Does an oil furnace need to be serviced every year?

An oil furnace needs to be serviced every year. Ideally, your oil furnace needs to be serviced at least once a year at the start of the winter season. This is the recommendation made by professionals. To be ready for the winter season, you will need to make sure you service your oil furnace before the season starts.

What is the average cost of a new oil furnace?

Most homeowners spend between $2,500 and $10,000. Replacing an oil furnace costs anywhere from $2,500 to $10,000, but most people pay $5,000 on average.

Should I replace my 20 year old furnace?

Furnaces 20 years old or older become increasingly inefficient over time and can crack and leak, putting you and your family in danger. If your furnace is between 16 and 20 years old and constantly breaking down, then you should strongly consider having it replaced.

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