Worth it to replace water heater on flip?

Question

My local power company will give me a free electric water heater if I switch over from gas.  It will still cost me about $250-$300 for additional parts and for the electrician and plumber to hook it up.

The current gas water heater works, but is 8 or 9 years old.  I'm wondering if anyone has any insight on if it is worth the time and expense to replace a working heater with one that is brand NEW.

The house is about $250k ARV, and will have new roof, windows, cabinets, bathrooms, in case that makes a difference.

Jessica S. · Answer

Jean, my guess is that in this case gas and electric are provided by two separate companies.

Jean Bolger · Answer

Why are they giving free water heaters? I don't get it- they sell you the gas anyway, right? And gas probably makes more sense from a conservation standpoint, so I'm not getting what the motivation is.... just curious!

If it's just that their margin is that much better on selling electricity, maybe you can get them to buy you one of those Tesla cars instead!

Cooper B. · Answer

Thanks everybody.  I didn't realize how much more efficient gas is than electric.  That being the case, I will just leave it alone.  Its only 7 years old and working fine; my last one here lasted 20 years.

George Paiva · Answer

Outside of the efficiency pluses already mentioned.  What currently heats the home?  Do you have a gas range?  If all of those are gas why put in an electric water heater which will cost more to heat and take much longer to heat?

I agree keep it gas the new owners will appreciate it.  As for the replacement if you have a plumber at the property have him look at the unit.  It might be in great shape and not need replacement. I have some properties with 20+ year old water heaters and still going strong.  Yes 20+ years.

Dawn Anastasi · Answer

Gas is more efficient than electric.

Patrick L. · Answer

Switching from gas to electric will lower the value to anybody that's concerned about the water heater as it's far less efficient.  Leave it or put a new gas one in if you really think it needs to be replaced.

Jason Munck · Answer

I would definitly replace it.  If your all in cost is $250-300 (including labor) then that is a good price for a new water heater.

You can wait for the old one to fail on it's own but it's a headache when it happens because you have to act quickly.  Since the old one hasn't failed yet you can replace when it's convenient for you rather than being stuck with whatever timetable you are forced to work with when you have a leaking water heater.

Your time and expense is much lower to replace it now rather than when it fails (and based on the age you gave, it could fail any time).

Buddy LaRue · Answer

I would probably replace the unit, and probably with a gas burning water heater.  If the property is a buy and hold, your tenants will appreciate it as it will cost them less to run.  If it's a flip, the new buyers may weigh it in their decision.  By replacing the unit, it's a win-win situation.   I don't see you can lose.

Bryan H. · Answer

I'd replace it with a gas unit. Cost will be around $600 and will cost buyer less to run, I hear about 3x less.