Water heaters in detail

Water heaters are a topic that often comes up during the process of a real estate transaction and something I feel would be worthwhile to address concisely in one place. More of a fact sheet of information related to water heaters in a home, I would like to share some things that I’ve learned over the course of my career and negotiating contracts and being a homeowner myself:

1. There are a couple different kinds of hot water heaters but the ones that I come across the most are conventional water heaters (consisting of an insulated tank in which water is heated and then stored until needed). Of this type there is the option of natural gas or electric. Typically, natural gas uses less energy and costs less to operate, whereas electric is cheaper and easier to install. Both kinds of water heaters are typically recommended to last around 8 years by the manufacturer but generally last between 10-15.
2. Especially in a market where you are dealing with the transfer of older homes it is not uncommon to see hot water heaters that have either reached or exceeded the end of this “typical” lifespan still operating in the home. There are a couple signs to look for regarding water heater failure, such as: lack of hot water, noises (popping, rumbling, creaking, dinging), cloudy or strange tasting water, clogged faucets impacting water pressure, leaking water, and rust and corrosion either on the connecting pieces at the top of the water heater or on the bottom.
3. A failing water heater is not something to take lightly. A leaking water heater can cause significant water damage, mineral deposits can clog up faucets and create issues being consumed, and a TPR valve malfunction or failure can be disastrous where the water heater temperature can exceed boiling and actually explode or become steam propelled (yikes!).
4. Conventional hot water heaters can definitely vary in price depending on where you purchase them, the size of the tank, and the kind of tank (gas, electric, and any special features). According to my recent experiences with both my clients and my own trip to Lowes to purchase a new water heater, a standard average sized electric unit is between $350-$550 (not including installation) and gas runs about $150 more on average than the electric ones. Installation can be tricky especially in older homes or in hard to maneuver places and often will include the cost of permitting (depending on who you use), but will run a couple hundred dollars as well. Tankless water heaters are more expensive but last longer and well, are tankless.

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