Buying your first home in New York City is exciting—but if that home is heated with oil, there are a few extra details worth slowing down for. Many first-time buyers are coming from apartments or gas-heated homes, so oil heat can feel unfamiliar during an already overwhelming process. The result? Important questions don’t get asked until after closing.
Oil-heated homes are common, safe, and effective across NYC, especially in older neighborhoods and single-family properties. But they come with components—like tanks, delivery logistics, and system maintenance—that don’t exist with utility gas. Being informed upfront can help you avoid surprises, budget more accurately, and negotiate more confidently. Below are five things first-time NYC homebuyers often miss when purchasing an oil-heated property.
What to check: One of the biggest unique elements of an oil-heated home is the oil storage tank. New buyers often forget to investigate the tank thoroughly. Is it located underground, outdoors, or in the basement? Each has implications. Underground tanks (buried in the yard) are common in older houses in Queens, Brooklyn, and Long Island. These can pose environmental risks if they’re old or leaking, and many insurers/lenders have concerns about them. First-timers might not realize an underground tank can be a big deal. You should ask the seller for any documentation: age of the tank, any leak tests or permits, etc. Many older underground tanks are well beyond their life expectancy. Removal or professional abandonment of an underground tank can cost a few thousand dollars, so you’d want to negotiate that if applicable. For above-ground tanks (basement or outside), assess the condition. Look for visible rust, oil stains, or an unstable base.
First-time buyers often don’t know what a fill or vent pipe even looks like – get familiar so during inspection you can spot issues. A home inspector should include the oil tank in the inspection, but not all inspectors are tank specialists. In NYC, sellers are required to disclose known issues, but an old tank might not be leaking yet – doesn’t mean it’s fine for the future. If the tank is 30+ years old, plan for a replacement soon and factor that into your budget or negotiation. Also, clarify ownership of the tank and fuel. Unlike gas, with oil you typically buy and own the fuel in the tank. At closing, there’s often an adjustment where the buyer reimburses the seller for the oil left in the tank (since it’s a commodity). First-timers might not anticipate this line item. It’s wise to check how full the tank is during your final walkthrough so you agree on a fair valuation of the fuel (your attorney can help with the specifics, often it’s based on market price per gallon). Pro tip: Ask the seller which oil company they used and how often they filled. This can give insight into any past issues or usage patterns. If the tank has a gauge, see if it’s functional and what it reads. A stuck or broken gauge is common in older tanks (not a deal-breaker, but something to fix later).
First-time buyers might not differentiate between an oil boiler (for steam or hot water heat) and an oil furnace (for warm air via ducts). Know which type the home has, as maintenance and what to check will differ. Boilers are very common in NYC oil-heated homes, sending steam to radiators or hot water to baseboards. Furnaces blow heated air. In either case, key things to ask and inspect:
Having an HVAC professional inspect the heating system as part of your due diligence is wise. A general home inspector will note obvious issues, but an oil heat expert can really evaluate burner combustion, etc. If anything looks questionable (like soot around the boiler, which can indicate combustion issues), consider asking for a credit so you can have it serviced or repaired after closing.
Coming from a rental or condo, new homeowners might not be used to managing fuel inventory. With oil heat, you’re responsible for monitoring the tank level and ordering oil (unless you enroll in automatic delivery). First-timers often miss this and suddenly have a “oh, I have to call for oil?!” moment. To avoid running out of fuel (which causes the burner to shut down and can require a service call to restart), get in the habit early: check the tank gauge regularly, especially in winter.
Many homeowners check weekly or every other week depending on usage. Also, understand that heating oil is purchased in bulk deliveries, so your heating expenses will be in larger chunks rather than a monthly utility bill. Budgeting for oil is different. For example, you might pay $700 for a fill that lasts 6 weeks, rather than a $120 monthly gas bill. It’s the same cost over time, but first-time buyers should prepare for the cash flow aspect. One tip is to join a budget plan with an oil company – they often offer plans to spread costs over 12 months, similar to ConEd’s level billing. This can make it more predictable.
New buyers might also not realize the importance of being present or accessible for deliveries. Unlike utility gas which is constant, oil delivery trucks need access to your fill pipe. In NYC, many fill pipes are on the front of the house or in the sidewalk. Ensure you know where it is and that it’s clearly labeled, not obstructed, and the fill cap is accessible (not painted over or rusted shut). After moving in, it’s good to replace old fill and vent caps if they’re deteriorated – small cost for preventing debris or water ingress. Many first-time buyers also ask how much heating oil a NYC home typically uses in winter. While it varies by size and insulation, single-family homes often fall within a predictable range. Asking the seller about last year’s usage—or reviewing delivery receipts—gives you a realistic baseline for budgeting and delivery timing.
If you’re buying an older home with an underground oil tank (UST), you must schedule an oil tank inspection. Many first-time buyers are unaware, but you can hire specialized tank testing companies. They can perform soil tests around the tank or ultrasonic thickness tests on the tank walls. This isn’t part of a standard home inspection, so you have to arrange it separately. It might cost a few hundred dollars, but it can save you from inheriting a nightmare. Leaks in underground tanks can lead to thousands in cleanup. You don’t want to discover after purchase that there’s contamination – because then it’s your responsibility. Some buyers negotiate that the seller remove an old underground tank before closing (especially if it’s a known older steel tank). If the seller won’t and you really want the house, consider at least testing or setting aside funds to remove it yourself soon. For above-ground tanks, the home inspector should check for leaks, but they often can’t see the entire tank bottom (where corrosion often happens). A tank pro might use a mirror or camera to inspect underneath. Look for any slow drips or the smell of oil. A lingering oil odor in the basement could indicate a past spill or current seep. Investigate anything like that – it might be something as minor as a drip at the filter or as major as a tank leak.
Pro tip for co-op/condo boards: If you’re buying a small building or co-op apartment in a building with oil heat, find out if there’s a shared tank and boiler. In such cases, the building management/board should have records of tank inspections and burner maintenance. First-time co-op buyers may not realize they have a voice in fuel contracts or maintenance via the board. It’s good to know the building’s fuel supplier and if they have a service contract.
Many new homeowners think, “Oh, it’s oil heat – maybe I’ll convert to natural gas soon.” It’s possible in NYC, but don’t assume it’s trivial. Gas conversion can be expensive ($10k-$20k or more) and requires a gas line of sufficient size, city permits, etc. If the home already has a gas line (for cooking or hot water), you still might need to upgrade the service for a heating load. National Grid (in Brooklyn, Queens, Staten Island) or ConEd (in Bronx, parts of Queens) would have to approve and possibly run a larger line. There are also clean energy laws on the horizon (like in NYC new builds must be all-electric starting 2024 for small buildings) – but existing oil systems can remain for now. The point: don’t buy an oil-heated home assuming you’ll immediately switch to gas unless you’ve done homework on feasibility and cost. Instead, you might embrace oil heat for the near term and invest in making it efficient. For example, you could upgrade to a modern flame retention burner or add outdoor reset controls for the boiler to save fuel. Or if the oil boiler is older, replace it with a high-efficiency oil unit or even a dual-fuel unit that gives you flexibility. Oil heat has advantages too: oil packs more BTUs per unit than gas, and with Bioheat, it’s getting cleaner. Plus, if you ever install a standby generator, having an oil (diesel) supply on-site can be handy (some generators can run on heating oil in your tank). First-time buyers often don’t realize they can negotiate a service contract into the deal. Some sellers will pre-pay an oil service contract for a year as part of concessions, meaning you have a go-to company for annual tune-up and any repairs in your first year (adds peace of mind). Also ask if any warranties exist – e.g., if the seller recently relined the chimney or installed a new tank, those might have transferable warranties.
Buying an oil-heated property in NYC is not scary when you’re informed. The main things first-timers miss – tank status, system condition, operation logistics – are all manageable with a bit of attention. Oil heat can provide wonderfully cozy warmth (many swear radiators heated by oil-fired boilers give the best heat!). Just go in with eyes open:
By covering these bases, you’ll avoid the common pitfalls new homeowners face. Instead of nasty surprises, you’ll enjoy the charm (and often cost-benefit) of oil heat. And remember, you’re not alone – Energo’s team is here to help new homeowners navigate all these questions. From performing thorough heating system evaluations to offering newbie-friendly automatic delivery plans, we’ve got your back as you settle into your first home. Congratulations on your oil-heated home – with a little know-how, you’ll keep it warm and worry-free for years to come!
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