Oil Heat in Oak Park, IL

[athome77]

Searched the forum and had no luck. Working on appraisal of SF in Oak Park, a near west suburb of Chicago. The area is made up primarily of older (90-100 years) homes. The area has some historic appeal due to Frank LLoyd Wright houses. Most homes have been renovated including replacement of HVAC, electrical, plumbing, etc. The subj. property has not. It is in need of extensive repairs. Roof and Chimney need replacement. Appraising subject to inspection by licensed home inspector and structural engineer. The property is currently occupied.

Heating system is Oil fueled. I have never come across a property with a similar system in 12+ years. Homeowner claims system works fine and has oil tanks refilled once a year.

Any advice on buyer reaction/resistance to oil heat in suburban market, cost to cure to convert to gas (if warranted), etc. would be greatly appreciated.

Thanks in advance.

 

[Wayne Tomlinson]

I am quite a way from Chicago, but I would wonder if some people would like the security of having their full needs for the winter covered, and knowing just where it is.

On the other hand, I know in my area there was a rapid conversion to LP or natural gas when the oportunity came along.

Many of the older folks claimed the oill heat was "warmer" than the newer type.

The biggest complaint though was that there always was an odor from the furnace, or maybe just from the oil tanks when they heate with oil. I would think that an adjustment is warranted, but since the system is in place, maybe only the furnace would need to be replaced.

Wayne Tomlinson

 

[athome77]

Thanks, Wayne. My concern is oil tanks stored in basement and market reaction. If conversion is warranted, cost to cure would have to include removal/disposal of tanks, not an inexpensive proposition. Am searching for comparable sales with similar systems.

 

[Edward OConor]

Thanks, Wayne. My concern is oil tanks stored in basement and market reaction. If conversion is warranted, cost to cure would have to include removal/disposal of tanks, not an inexpensive proposition. Am searching for comparable sales with similar systems.

I would be more concerned if the tanks were in the ground. Dealing with the EPA and a leaking in ground tank could be far, far more costly.

 

[josephdifranco]

At home,

You'd be lucky as hell to find sales with oil heating systems. The market could react in excess of the cost to cure if they have to buy the home in that condition. Too bad you got stuck with this weird one, while there is likely tons of of data for rehabbed four square homes, (I had a couple of years being very active in that area). I would say however that while you might not find sales with oil heat, there should be a few that sold in crappy condition out there somewhere.

Best of luck,

 

[RustNeverSleeps]

I grew up in Oak Park. When my parents sold our 1920s house (sometime around 1993) the inspector found one of those old oil tanks buried in the back yard (we had no idea it was there). The buyers said "remove it or we walk". Not sure if that helps but I would think it is obsolescence when most others have modernized and a possible environmental hazard?

 

[athome77]

I grew up in Oak Park. When my parents sold our 1920s house (sometime around 1993) the inspector found one of those old oil tanks buried in the back yard (we had no idea it was there). The buyers said "remove it or we walk". Not sure if that helps but I would think it is obsolescence when most others have modernized and a possible environmental hazard?[/quote]


My point, exactly. Still searching for more on this one.

my red

 

[Riick]

I asked a similar question a few weeks ago; my concern was that with the price of diesel at close to $5/gal, fuel oil can't be too much less.

No one had a definitive answer. AFAIK, it's not a matter of functional obsolescence,
but instead, energy efficiency. I see them as different; maybe you don't. ??
Merely categories.

BTW... it's easy and fairly inexpensive to convert the current furnace from burning oil to burning gas;
I did that in one apt building I own.
The gas burner unit looks almost the same an oil burner, fits in same space, just uses gas. Some minor modifications of fluepipe needed, to assure no downdrafts

Cost for the conversion c.1980 was about $650, $1500 today ??
A new gas furnace will be more efficient, but the HVAC people are ripping and running,
I've had people consistently tell me they paid $6-$7,000 for a new forced hot water furnace.

I consider that Crazy...
New FHW furnace is an easy install; at plumbing supply house the units -even for a large house- are still well under $2,000,
It takes two men only 1/2 day to install one. (( Have installed 4 by myself ))
.

 

[athome77]

Thanks for all of the info/suggestions.

Lets say the cost to convert to gas is small. My concern is how to address the two oils storage tanks in the basement. Environmental hazard? Any suggestions/opinions appreciated. Thanks

 

[Jim Onderisin]

So, how many thousands are you getting paid to do this one? I wouldn't worry the situation. I've done an Oak Park property with oil heat and a couple with tanks in the basement. One with a tank was a sale. The agent said the "workers were going to come out and remove the tank" and that's all the buyer cared about. Another, the buyer didn't care. The tank could stay put.

I'm probably wrong, but a person can spend an awful lot of time searching for some market evidence in this particular situation. He'll either not find it or find it in some other market area which doesn't transfer well to Oak Park. That's a fairly unique market.

It sounds as though the oil burner is not going to be the main "sticking point" in this property. There are a few other issues. If the market for this property is rehab-and-rent'er, the market doesn't likely care. Gut it, fix it, replace it and get someone in there. In a week, no one will know the oil burner was ever there.