Should I Replace the Water Heater Before Selling My House?
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
As a home seller, you’ll face some gray-area decisions about what to fix, replace, or leave as-is. A common question that comes up is “Should I replace the water heater before selling my house?”
If the water heater is working (and not leaking), you might be tempted to ignore it. After all, it’s not as noticeable as other preparations, like painting or cleaning the carpet. But what if it’s older? How old is too old? How might it impact your home sale?
To help answer these questions, we spoke with Adrian Chu, a top real estate agent in Seattle who has more than 15 years of experience advising home sellers. Here’s what to consider before making a decision.
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Should I replace the water heater before selling my house?
“Relative to the home prices in the area, [a water heater] is a smaller expense, so it generally won’t be a deal breaker,” Chu explains. “However, it depends on the home, its location, and what else is involved.” Top agents like Chu know that the water heater is just one puzzle piece in a larger picture that can influence a buyer’s decision.
You obviously want to maximize your home’s sale proceeds, but if buyers see an older, inefficient, or shabby-looking water heater, they may start to wonder if the rest of the home has also been neglected.
Chu says there are two general rules he follows when advising sellers on whether to replace the water heater before listing a home. “If there are leaks and/or if the water heater is more than 10 years old.”
Here’s when replacing your water heater before listing makes sense:
- It’s leaking or visibly damaged. Any signs of leaks, rust, or corrosion are red flags for buyers and could make your home harder to sell.
- It’s more than 10 years old. While some water heaters last longer, an older unit will likely be flagged in the inspection report.
- You’re in a buyer’s market. When buyers have more choices, they may ask for repairs or replacements during negotiations.
- You want to avoid last-minute price negotiations. If the inspection uncovers an aging water heater, buyers may request a credit or replacement, which could delay the closing process.
If your water heater is old but still functioning, Chu advises that you disclose its age and condition upfront. “The age of the [unit] is normally uncovered in the home inspection,” so being proactive can help prevent surprises later in the sale process.
What is the cost to replace a water heater, and is it worth it?
In his Seattle market, Chu says, “The typical cost of replacing a standard water heater is around $1,500 to $2,000.” Nationwide, the average replacement cost is $1,327, according to Angi.com. However, price estimates for your home will depend on the size of the tank and what’s involved in replacing it. Here’s a look at the ranges you can expect based on size:
There are also tankless or demand-type water heaters, which have a higher average cost of $2,623, or a typical range of about $1,400 to $3,900. These come in single-point and whole-house systems. You can also mix and match, installing a whole-house system but also placing a single-point unit in a bathroom, allowing multiple people to shower at the same time.
Does this expense pay off in a home sale?
It depends. If your current water heater is leaking or extremely outdated, replacing it could help your home show better and prevent last-minute negotiations that can slow down a deal or reduce your proceeds.
In the current market, Chu says you may find that more buyers are requesting repairs or replacements of major systems, including water heaters. “It depends on the type of home and location. Many homes are getting waived inspection contingencies. But if there are negotiations that happen over inspection repairs, the water heater is commonly one of them.”
Alternative to replacement: Offer a home warranty
If your water heater is old but still working, replacing it might not be necessary. Instead, offering a home warranty that covers major systems, including the water heater, could help ease buyer concerns.
Chu says this can be a good alternative. However, “Even with a home warranty, sometimes [warranty providers] are not quick enough to respond to urgent situations like a leaking water heater.” This means that while a home warranty may initially reassure buyers, it might not completely remove concerns about an older unit — especially if there are already signs of wear and tear.
A one-year home warranty typically costs between $450 and $600 and can cover appliances, heating and cooling systems, and plumbing. This is less than half the average nationwide Water heater replacement cost of $1,327.
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Other major systems that can influence a home sale
While a water heater alone may or may not impact your home sale, other major systems can have a bigger influence on buyer decisions, particularly when it comes to home inspections and negotiations.
Chu points out that buyers are often more concerned with the HVAC system (heating, ventilation, and air conditioning) and the roof. These are expensive components that, if in poor condition, could turn buyers away or lead to costly negotiations.
Here’s when you might need to repair or replace these systems when selling a house:
- HVAC system: If it’s more than 10-15 years old, inefficient, not working properly, or does not meet the same energy-efficient standards as more modern units in nearby homes that are also on the market.
- Roof: If there are visible signs of damage, leaks, or if it’s reaching the end of its lifespan. A roof can last 20–30 years or more if it’s well maintained, but this depends on what type of roof is on your home.
- Electrical or plumbing issues: If your home has outdated wiring or plumbing problems, these could create inspection hurdles. These types of repairs are often mandatory after a home inspection.
Final thoughts on replacing a water heater before selling a house
So, should you replace your water heater before selling your house? The answer depends on its age, condition, and the overall state of the local market. In the big picture, a water heater is not a major expense compared to other home repairs. If your unit is leaking or more than 10 years old, replacing it could help avoid last-minute price negotiations and make your home more appealing to buyers.
However, if it’s still working well, you can disclose its age upfront, offer a home warranty, or just be prepared to offer repair costs during negotiations if a buyer raises concerns.
Ultimately, consulting with an experienced real estate agent can help you decide whether replacing your water heater is the right move. A seasoned agent will know what buyers in your market are looking for, and what things in the house you may not need to fix.
To consult with a trusted top agent in your market, try HomeLight’s free Agent Match Platform.
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