Need a new water heater? A new one may not fit in the existing space....

As I was meeting a new seller client a few weeks ago and walking through her house for the first time, I noticed her water heater appeared that it was at the end of its useful life. Seriously, it looked like it had boiled over! She is fortunate though; since her water heater is not confined inside a closet, and instead just sits against a wall in her garage, she will not have to make many modifications when she has the water heater replaced.

Due to new requirements of the National Appliance Energy Conservation Act (NAECA), after April 16, 2015 all water heaters manufactured in the United States must meet higher energy efficiency standards. As a result, these new models of water heaters generally have wider tanks and some different technology components.

What does this mean for you? If you have to replace a water heater that is located in a closet, your closet may not be large enough to accommodate your new water heater. Added costs may include retrofitting or expanding the closet, or even relocating your water heater somewhere else inside your home. Or perhaps you may opt to install a tankless water heater instead, which takes up less space?

As you are planning and budgeting for household repairs, increased costs from the new standards may be something to consider.