City buyers assume every house has a gas line. In the mountains, propane and heating in mountain homes depend on the street. A home on a gas main burns natural gas. A home past it runs on propane from a tank, electric heat, wood, or a heat pump. The fuel can change the winter bill a lot, and the tank itself can be a surprise at closing. Here's what to check.
The short answer
Find out the heat source and fuel, who owns the propane tank, and what the last 12 months of utility bills look like. Propane is delivered by truck to a tank on the lot, so access matters. Leased tanks belong to the propane company and stay with that company's contract. Ask for furnace or boiler age and service records, and have the inspector look at the system.
Step by step
- Identify the fuel. Gas meter means natural gas. A tank above or below ground means propane. No meter or tank may mean electric, wood or a heat pump.
- Ask for 12 months of bills. Gas or propane, plus electric. That's the real cost, especially winter months.
- Ask who owns the tank. Owned tanks transfer with the home. Leased tanks stay with the propane company, which may require the new owner to sign up with them or pay to switch.
- Check tank size and fill level. Tanks are filled to about 80% for safety. A bigger tank means fewer winter deliveries up a steep road.
- Ask about propane at closing. Some contracts address who pays for the fuel left in an owned tank. Put it in writing if it matters.
- Check delivery access. The truck needs to reach the tank in winter. See winter access.
- Get the system inspected. Furnace, boiler, radiant heat, wood stove and chimney. Ask for age and service records.
- Mention heat pumps. Some buyers want to switch. Colorado and utilities may offer incentives that change over time. Point buyers to the utility and a contractor.
- Look at backup heat. Power outages happen. A wood stove or generator matters to many buyers.
Fuel at a glance
| Fuel | How it arrives | Watch for |
|---|---|---|
| Natural gas | Utility line | Usually simplest |
| Propane | Truck to a tank | Tank ownership, delivery access, price swings |
| Electric resistance | Power line | Can be costly in cold months |
| Heat pump | Power line | Cold-climate model? Backup heat? |
| Wood | Hauled in | Chimney inspection, insurance questions |
How to explain it to your client
"This home runs on propane, not a gas line. A truck fills a tank on the property. Two things to know: who owns the tank, and what winter costs. The seller owns the tank, so it comes with the house. I've asked for 12 months of bills so you can see the real heating cost, and our inspector will check the furnace. If you're thinking about a heat pump later, we can ask the utility about current incentives."
Watch-outs
- Leased tanks surprise buyers. Find out before closing.
- Bills tell the truth. Listing comments about "low utilities" don't.
- Wood stoves and insurance. Some insurers ask about them. Get a quote.
- Carbon monoxide. Any fuel-burning appliance needs working CO detectors. Inspectors will flag it.
- Prices change. Don't quote fuel prices as fixed.
Further reading
- Propane vs natural gas in Colorado mountain homes on coloradomountainhomefinder.com
- Heating a Colorado mountain home on coloradomountainhomefinder.com
This is training for real estate agents. It isn't legal advice. Check with your managing broker.
Questions
How do I know if a home has propane?
Look for a tank on the lot or ask the seller. A gas meter means natural gas.
What's the difference between an owned and leased tank?
Owned tanks come with the home. Leased tanks belong to the propane company.
Who pays for propane left in the tank?
Whatever the parties agree to. Put it in the contract if it matters.
Is propane more expensive than natural gas?
Often per unit of heat, but prices change. Look at the actual bills.
Can a mountain home switch to a heat pump?
Often, with a contractor's design. Incentives vary. Check with the utility.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.