Conversions Between Liquid Propane and Natural Gas: What Homeowners and Realtors Should Know
September 2025
When buying or selling a home, energy sources aren’t always the first thing people think about. Yet for many properties—especially in areas without widespread natural gas lines—the choice between liquid propane (LP) and natural gas (NG) matters. Understanding how these fuel types work, and what it takes to convert between them, can make a big difference in real estate transactions, home inspections, and long-term homeownership.
LP vs. Natural Gas: The Basics
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Natural Gas (NG): Delivered via underground pipelines, NG is convenient and typically less expensive per BTU where service is available.
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Liquid Propane (LP): Stored in a tank on the property, LP is more common in rural areas. It burns hotter, making it very efficient, but requires on-site refills.
Both fuels are clean-burning and widely used for heating systems, water heaters, ranges, fireplaces, and outdoor appliances.
Why Conversions Come Up in Real Estate
Conversions between LP and NG often surface during real estate transactions for a few key reasons:
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Utility Availability: A buyer may prefer NG for lower cost and convenience if a gas line is accessible.
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Appliance Compatibility: Not all stoves, furnaces, or water heaters are easily convertible—some require specific kits or may need to be replaced.
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Negotiation Factor: If a buyer wants NG but the home is set up for LP, the potential cost of conversion can affect offers, concessions, or closing negotiations.
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Marketability: Homes connected to NG service often appeal more to buyers because of perceived long-term savings and convenience.
The Home Inspector’s Perspective
During a home inspection, an inspector doesn’t perform conversions but will:
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Verify whether the home is fueled by LP or NG.
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Check that the appliances are properly configured for the current fuel type.
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Identify any safety concerns—like incorrect or missing conversion kits.
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Note the presence of LP tanks and whether they’re leased or owned (important for buyers to know).
An inspector’s findings may lead to further evaluation by an HVAC professional if a conversion is being considered.
What Homeowners Should Know About Conversion
If you’re thinking about switching fuels, here are some practical points:
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Conversion Kits Are Required: Most appliances can’t just “switch over.” A licensed technician must use a manufacturer-approved kit to adjust burners, regulators, and orifices.
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Not All Appliances Convert: Some older models can’t be safely converted, meaning a new purchase may be necessary.
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Costs Can Add Up: Conversion costs depend on the number of appliances, the availability of a natural gas line, or the installation of an LP tank.
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Permits and Codes: Conversions often require permits and must meet local building codes to ensure safety.
Real Estate Agent Tips
For agents, understanding the LP vs. NG conversation can strengthen client trust:
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Highlight fuel type in listings, especially for rural homes.
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Be prepared to discuss potential conversion costs during negotiations.
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Partner with inspectors and local HVAC pros to guide clients toward safe, informed decisions.
Final Thoughts
Conversions between liquid propane and natural gas may seem like a technical detail, but in real estate, they can impact property value, buyer decisions, and safety considerations. For homeowners, knowing the differences helps with budgeting and planning future upgrades. For agents and inspectors, it’s one more way to provide clarity and support during the home buying process.
At Hometown Inspections, we make sure our clients understand the systems in their homes—whether fueled by propane, natural gas, or a mix of both—so they can make confident decisions today and for the future.
