Heating Cost & Home Buying: You can Buy $300k W/ Natural Gas vs. $277k W/ Propane.
In Steamboat Springs, the cost to heat our homes is important. When buying real estate in Steamboat Springs you need to know how the property is heated. How it’s done and what is used can make a huge difference. Natural gas is available here in Steamboat Springs so that’s the very common fuel used to heat Steamboat homes. But many Steamboat homes are heated with propane. Heating with propane is more expensive than heating with natural gas. Buying real estate is more about what you can afford or buying a month payment than the price of the home.
But home ownership is so much more than being able to pay the mortgage amount every month. And the cost of heating your home today must not be overlooked.
A New York Times article highlighted the rising cost of heating oil for homes. It’s estimated that the cost to heat a home with heating oil this year will be $2,383. The same home heated with natural gas would be $951 for the year.
Cost per month of heating a home:
• Propane = $226 per month
• Natural gas = $79 per month
If you were buying a home today, the cost of heating that home is critical to what you can afford. Taking in the difference from heating with oil and heating a home with natural gas, the difference is huge.
- If you bought a home with natural gas heat you could buy a home for $300,000.
- If you bought a home with heating oil heat you could buy a home for $277,000.
$300,000 = $1,922 Mortgage + $79 gas heat = $2,001
$277,000 = $1,775 Mortgage + $226 propane heat = $2,001
So, if you’re buying real estate, it’s important to see how that home is heated. Most buyers see the heating cost as an after-thought when in fact it’s very important to factor in the cost of heating a home prior to purchasing real estate. Ask for the utility records prior to buying real estate. Don’t overlook the cost of heating a home today.
You get what you pay for in heating. Efficient home heating sources are worth every penny and when heating in the Rocky Mountain, it’s critical to do it right.
Regards and stay warm.