When aiding a seller in selling their home, should they keep natural gas? If your seller wants to increase their home’s worth and make it more affordable, should your seller convert it to natural gasoline? Are there any pros to making the switch?

What is Natural Gas?

Natural gas is a fossil fuel. Natural gas is similar to oil or coal in that it is the product of millions of years worth of dead plankton growing underground and underwater. It is mainly made up of highly flammable methane. Natural gas, like petroleum and coal, can be obtained by drilling and fracking. Natural gas can be used in the home to heat, heat the running water, and cook with gas ranges. Before electricity, natural gas was more widespread in residential real estate.

The Perceived and Tangible Values of Converting To Natural Gas

• People may prefer natural gas appliances if given the option.
• Natural gas is considered a more affordable energy source than other sources once it has been connected and established historically. 
• Some prefer to cook with a gas range over electric or convection cooktops.
• It is essential for agents of homeowners to know the difference between tangible and perceived value.
  A home with a heating or energy source will not be affected by conversion to natural gas.
• If the existing system isn’t working, adding heat or energy to the home will likely have the same effect on the appraised value.

A home with heat or energy can only be helpful if maintained correctly. It may even be necessary for buyers to find a lender that will lend a mortgage on the property. Conversion will not increase the value of your home. Buyers will need more money to buy a home with a higher value. This exception applies if natural gas is in demand or desired by your ideal buyer, and they can pay cash and more than the appraised value.

The Challenges Associated With Converting To Natural Gas

Natural gas can have many costs.

• Appliances You need to have natural gas appliances to use them.
• Connections You must be able to bring the gas into your home.
• Street-to-Home Pipes – You need to connect to existing lines to bring them to your unit.
• Pipelines to your Street – If there is no existing gas line within 90ft of your property, you might have to purchase additional pipes.

There are also daily usage costs. Here are the average guesstimate’s of annual natural gas costs:

• Heating in space – $574
• Water heating – $164
• Cooking – $46
• Drying clothes – $34

There are many variables to consider, including how much you cook, how many loads of laundry you do, how big your house is, how often you wash your teeth and how warm it gets in the winter. These items can be converted to natural gas annually for savings of up to $729 each year. This doesn’t include ongoing repairs or maintenance or the cost of making the changes. You will still need electricity to run lights and appliances and charge your phone and laptop. Remember inflation and rate increases and the possibility of higher homeowner insurance costs due to gas. Lastly, be aware of any new environmental regulations or penalties that may apply to heating and other energy sources.

The Cons of Converting To Natural Gas

What are the possible disadvantages of adding natural gas or keeping it? Despite the trend, natural gas can be as detrimental as conventional systems.

Gas Leaks & Explosions

Explosions and gas leaks are two of the most severe dangers. Although these risks are less common than they once were, they still exist. Many homebuyers and renters are uncomfortable using gas. It’s scary. If you’re a landlord, this is a risk to your income and assets. You may need to increase or expand your insurance coverage to account for this.

Future Flexibility

Gas lines running through your property could also negatively impact the ability of future owners to dig on it. This could negatively impact the property’s value and appeal.

The Environment & Regulations

Fossil fuels can be a scarce natural resource. Many consider drilling and fracking, which inject chemicals into the ground, disruptive and dangerous to the environment. Even if your concern is not for the environment or human health, there’s a good chance that regulators will try to restrict drilling and fracking. This will lead to rising costs for users. Most jurisdictions have aggressive plans to reduce emissions and pollution in the next few years. Some have reportedly been banning natural gases in homes, such as in San Jose, CA.

Other options than converting to natural gas

You might also be interested in investing to increase the marketability of your house if you’re serious about energy improvements or need to update an existing system.

• Solar power can be added
• Rainwater harvesting
• Appliances that improve energy efficiency
• New insulation, roofs and doors, and energy-efficient windows, doors, and insulation are all examples of energy-efficient improvements.
• Wood-burning fireplaces and digital fireplaces can be restored
• Energy efficient mortgages and grants for improvements

Summary

Natural gas is not something everyone would like to have. Still, some buyers may be interested if it’s available. It won’t increase the value of your home. If you have natural gas already connected to your property, there might be some temporary usage savings.