Should you avoid houses with an in-ground oil tank?

First, I have bought and sold houses in the northeast where in-ground oil tanks are common and my findings may not be applicable to all locations.

Many houses built before the 80’s have an oil tank buried in the yard, usually right next to the house. While an in-ground oil tank does pose some financial risks, it does not need to be the big issue some people make it out to be. It is true that oil tank removal and soil decontamination can reach $20,000 but there are ways to protect against that.

If you are the buyer, ask the seller to abandon the tank. This should cost a few hundred dollars and involves emptying the tank and filling it with some solid like sand. Then, a replacement oil tank can be installed above ground for less than $2000. Do not remove the old tank as you may find some unpleasant surprises.

Alternatively, there are companies that will perform a pressure test to check for leaks and supply a certificate proving the tank is leak free. Be aware that the test may cause a borderline tank to leak and then the testing company will have to report the leak and decontamination must take place.

From weighing the alternatives described above it is clear that tank abandonment is the safest choice for both the buyer and the seller and certainly not costly compared to the total cost of a property.