Will BANNING Oil and Gas heat in New Homes HELP or HURT Sales?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

There is a RASH of new regulations and laws where towns, cities and counties in a haste to stop global warming. They are banning new homes being built or substantially renovated to have gas or oil. They want the homes to have electric heat and electric stoves.

 

The questions of the day will these new laws help or hurt home sales? The second question is will this have any affect on green house gasses? 

 

You do not have to look far in NH for a lesson on home values. In NH the cost of electric is high. Take a home that is all electric featuring electric heat versus a home with natural gas. The cost to heat the home with electric could run $500-$600 month in winter. The home with natural gas will run about $1000 a year to heat. A  home with oil may run $1200 year. The value of the electric home may run $30,000 to 40,000 less than a home with economical gas heat.

 

What are the reasons that value can be that low? Many buyers do not want electric heat. The cost scares them. The second thought is that they can not afford month bills that high December through March. In the end the less buyers, the lower the price the home will sell for.

 

Why is electric so high in the Northeast? They have closed Nuclear plants in Vermont in MA. They are restricting new gas pipe lines which could bring clean natural gas to NH to build more plants. Solar is minimal in the Northeast. Wind farms are just starting but not near enough to make any dent in the clean renewable energy. Utilities allowed to charge the consumer for plant building, maintenance and close down lead to de-regulation and finallyfree markets. But with only 1 or 2 utilities in the state, there is no competition.

 

Most electricity is made using gas, oil or coal fired plants. The environmentalists do not see this. The goal to reduce green house gas is a good one. But needs to be done sensably. 

 

The MOST IMPORTANT thing in real estate for me, is to provide great service. To stand out from the crowd by being there through each step of the buying or selling process. My message that I want to share in Real Estate, is that my philosophy is simple, to provide more personal and professional service to guide clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest.

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 33 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

A seller with small kids or babies may need to say no showings after 7pm. Some earlier even. Those with older kids or no kids may not have limits. I find it is best to ask up front and put showing rules on my listing so agents and potential buyers know when they can and can not see the home. 

 

The MOST IMPORTANT thing in real estate for me, is to provide great service. To stand out from the crowd by being there through each step of the buying or selling process. My message that I want to share in Real Estate, is that my philosophy is simple, to provide more personal and professional service to guide clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest.

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 33 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

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Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Here in NH in 1980's they built all homes electric, then when rates went through the roof, they went back to oil and now nearly all are natural gas here in NH

Nov 22, 2019 04:27 AM #19
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is very expensive when it is the sole heating source Anna Banana Kruchten CRB, GRI, WLS especially here in the North East

Nov 22, 2019 04:28 AM #20
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

That is so true and a whole other thought with ice storms, wind storms power goes out and stays out for days sometimes Carol Williams 

Nov 22, 2019 04:29 AM #21
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

That is the way i feel and the way i see it too Margaret Goss 

Nov 22, 2019 04:30 AM #22
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Hopfully they can get the cost down to do that Caroline Gerardo 

Nov 22, 2019 04:31 AM #23
Rainmaker
3,055,963
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It sure will Ricki Eichler McCallum 

Nov 22, 2019 04:31 AM #24
Rainmaker
2,487,555
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Every once in a while something controversial pops up. The relevant answer to any question: Is there anything "broken" that needs addressing? If not move on

Nov 22, 2019 07:23 AM #25
Rainmaker
603,035
Lindsey Hasford
Edina Realty - Elk River, MN
Bringing you home...

In Minnesota that would be a death sentence for a home sale. People avoid electric like the plague. I DO like that the electric companies here will allow an "average" payment year round instead of the highs and lows that come with the seasons. Where do wood furnaces land in the mix? I know many that would prefer wood over electric simply due to cost alone.

Nov 22, 2019 09:19 AM #26
Ambassador
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

I can only tell you from personal experience - I'm looking to buy a home right now --- and when I see an electric stove, it is an automatic no for me.

Nov 22, 2019 03:10 PM #27
Rainmaker
458,828
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Good post! In the south we mainly use electric heat, because it is cheaper to use here. A heat pump works well south of DC, because it does not get that cold here in the winter. Electric bills can skyrocket when we have a particularly cold spell and you have to use the all electric function. I believe your electric heat costs estimates are low, maybe by as much as 50%! Good luck heating a home in the NE with electric heat! The flip side is that one will burn a lot more electricity in the summer. If the home is insulated to keep it warm in the winter, you will need to run the AC a lot more than you do now!

Nov 22, 2019 03:53 PM #28
Rainer
45,078
Donna Sattler ABR,GRI,CNE,CDPE
RE/MAX At Home - Rolling Meadows, IL

"Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly, and applying the wrong solution"  This is the Groucho Marx quote that comes to mind.   :-)

Nov 22, 2019 05:55 PM #29
Rainmaker
1,566,570
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Remember what Ronald Reagan said - it was something along the lines of: The scariest words in the world are "I'm from the government and I'm here to help."

We have a bunch of people running around making rules without knowing all of the facts and not having any idea of how their mandates will affect the citizens.

Meanwhile - the US could completely stop creating greenhouse gasses and the problem (IF there is one) would still persist - because other countries produce far, far more than we do.

Nov 22, 2019 08:41 PM #30
Rainer
506,679
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Scott,

Sounds like a stupid rule, but then maybe somebody in the electric company got lucky with their lobbying. I am all for reducing greenhouse gases, since we are the second-highest producer right after China, but I am sure there are other ways that are cheaper and better. For example, insulation is relatively cheap and can help home owners reduce their need for heating (and cooling) in the first place. A rebate program or tax incentive might get people to retrofit more quickly. They would love the savings in heating and cooling after the fact & if it helps reduce our contribution to climate change, all the better.

Nov 23, 2019 06:20 AM #31
Rainmaker
261,375
Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR

Gas is far more economical than electricity. When I bought my house it had electric everything. Within a year we had converted to gas because the cost of electricity in our area is prohibative. We would not have been able to afford to heat our home with electricity and would have been forced to use a wood stove for our only heat source. Very stupid action taken by those in favor of government control over everything we do. 

Nov 23, 2019 07:22 AM #32
Rainmaker
345,981
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"

Scott, you hit the nail on the head. I live across the river in Vermont and have the exact feeling on the subject. If a house has electric heat buyers automatically deduct $20,000 or more so they can put in central heat. And yes the electricity takes energy to produce up here. 

Nov 23, 2019 09:54 AM #33
Rainmaker
384,259
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

So many regulations caused unintended consequences. It seems silly not to offer heat using natural gas, when the electricity being offered as a “cleaner” alternative is generated partially using natural gas!

Out here on the West Coast, PG&E is turning off the electricity to millions of customers whenever there’s a threat of a windstorm, because their decrepit systems have caused such devastating wildfires. The result is thousands of noisy, polluting generators are being used by those of us that can afford to buy them.

Nov 23, 2019 10:12 AM #34
Rainer
484,489
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Utilities and the environment are regulated by the government, so, the regulators are elected by the citizens who vote, therefore any regulations mandated by the government are ultimately the responsibility of the voters, that's a fact, isn't it, those who vote for the regulators and those who don't vote at all. Yet, most of these citizens are the first to complain about the consequences  about the governments rules and regulations. Ironic, isn't it? 

Nov 24, 2019 06:08 PM #35
Rainer
105,473
Brian DeYoung
Howard Hanna Real Estate Services - Ithaca, NY
Brian DeYoung

in my area people want at least TWO heat sources in many cases.

I do have some rentals that are all electric, because people never fill the oil or propane and only use the electric, effctively making them like what you describe.

 

Nov 25, 2019 06:54 AM #36
Rainmaker
714,794
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

As of January 1st, all newly constructed California homes including multifamily buildings up to three stories must have enough solar panels to offset their electricity use.

Nov 25, 2019 02:39 PM #37
Ambassador
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

I was going to say what John Juarez already said about solar being required in new builds here in California, with some exceptions, beginning in 2020!

I know lots of people who do not like electricity, as least for their cooking.

Nov 27, 2019 12:12 PM #38
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