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Oil Vs Natural Gas

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hermansherman

Freshman Member
Joined
Feb 18, 2016
Professional Status
General Public
State
New Jersey
Hi,

I live in Northern NJ, in my neighborhood, most houses have natural gas, either as built, or converted, and all new construction has natural gas.
Unfortunately, my street does not have natural gas, and my house, built in 1976 burns heating oil, and I believe, more significantly, has an electric range for cooking and electric dryer for drying clothes.

Our town recently had a town-wide reappraisal, and I believe that the appraisers have not taken in to account the negative impact that my house burns heating oil and has an electric range and dryer.
I went to a meeting with the appraisers and pointed this fact out to them, but just received in the mail notice that they would not be lowering their appraisal.

I have scoured the internet, and to date, have been unsuccessful in finding anything that would buttress my argument that a house that burns heating oil with electric range and dryer is much less valuable than a similar house with natural gas and natural gas-burning appliances.

Would anyone be able to point me to a study or analysis that I could use to support my argument?

Thank you in advance,
Herman
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
You may have had an argument back when oil was $4.00 a gallon but these days it's a buck and 1/2.

Every house needs heat, be it gas or oil or electric.

Be sure to fill up your tank(s) for next season and focus your time on more productive things as this is a battle you will not win.
 

sandpiperapp

Senior Member
Joined
Apr 5, 2011
Professional Status
Certified Residential Appraiser
State
New York
I work in the New York metro area and surrounding suburbs where we have both oil and gas heat. I see no impact on value in most typical suburban or urban areas. Now if a home is totally electric, there can be an impact on value in these markets, but it is very market specific
 

hermansherman

Freshman Member
Joined
Feb 18, 2016
Professional Status
General Public
State
New Jersey
I work in the New York metro area and surrounding suburbs where we have both oil and gas heat. I see no impact on value in most typical suburban or urban areas. Now if a home is totally electric, there can be an impact on value in these markets, but it is very market specific

I appreciate your perspective.
Most people I know would not consider purchasing a house with an electric range, especially if they can go two streets over and buy the identical house with a natural gas cooktop.
Maybe that's just the people that I know, and not the general population.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Nice thing about oil is that there is no monthly 'meter fee'.

Nothing wrong with a fine glass top electric stove too. Looks modern, gets the job done.
 

sandpiperapp

Senior Member
Joined
Apr 5, 2011
Professional Status
Certified Residential Appraiser
State
New York
Some like it, some dont. Believe it or not, some people are afraid of gas. Bottom line, no impact on value in most markets I cover.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I worked in the oil patch. And I have an all electric house and never want gas in a house.

 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
you're unhappy about the reappraisal, and your taxes going up. gee, the politicians can't get enough of your money. don't expect any decrease. spend your time looking at floating clouds to lower your taxing anger.
 

BarbaraNJ

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
I own an appraisal firm which has done business in northern NJ since before licensing (1990's). I understand what you are saying but don't totally agree. Let me explain.

It is common knowledge in this area that lenders and/or lawyers make a seller remove an in ground oil tank before a sale can close. I don't know if your tank is above or below ground, but if it is below ground it will almost certainly impact your "bottom line" when you decide to sell.

The impact of electric cooking is much more difficult to establish as a detriment. I know some people who insist on an electric range, and some who won't touch one.

The way for an appraiser to measure the impact of any item is what we call a "paired sales analysis". In brief, it is the process of comparing two neighborhood sales, one with (for instance) a pool and one without. Theoretically, by comparing the two sale prices, the difference can be attributed to the pool.
Since home sellers in our area remove their oil tank prior to the sale in order to obtain their asking price (or the highest sale price possible), the sale prices never reflect the difference between a home with an oil tank and one without.

In other words, any appraiser in this area would be hard pressed to offer statistics to back up a dollar adjustment.

If, as you say, gas is not available to your home and the surrounding homes, I doubt anyone would be able to prove a detriment to selling because the area homes are sold and re sold routinely with buyer knowledge of the lack of natural gas situation.

By the way, if it is absolutely impossible to get natural gas to the home, the lawyer or mortgage company request would likely be to remove an in ground tank and install an above ground tank. Think of areas in Sussex County, where you have a choice of oil, electric or propane only.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
that lenders and/or lawyers make a seller remove an in ground oil tank before a sale can close.
Similar to an old garage without safety switches. Fix it for liability sake - some regulators won't allow it to be sold without one. Impact impossible to estimate except the cost...say $300 to put in an electric light at least.
 
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