In the Pepperell area, I find that buyers prefer oil (or gas) vs. propane. Most object to the above ground tank. I'm also licensed in NH and in that area propane is much more prevalent especially in new construction. The tanks are typically buried. MA purchasers still baulk at propane but right over the line in NH it's quite acceptable. In my 20+ years of selling real estate, the typical buyer does not compare BTU rates and I agree with Elizabeth that people tend to gravitate to what they're used to. Hope that helps.
Catherine Condon, Broker MA & NH
Integrity Residential Brokerage
138 Main St., Pepperell, MA 01463
I think New England has by far the highest percentage of homes heated by oil so if buyers are from elsewhere it may be new to them. Propane is also not common in many areas. If it is often seen where you are than a local buyer, or a buyer who has looked at a lot of homes heated by propane would probably be ok with it.
On a side note - As someone who's owned a condo with electric heat and sold homes heated with an electric heat pump I can vouch for electric heat being much more reasonable in cost than many people think. It's also very clean.
Prices for any fuel vary year to year so I usually caution buyers about deciding on a "best fuel source" based only in price since things could easily change.
Either system requires you have a truck back up and fill your tank. Is one cheaper than the other? The only other issue is you have an ugly propane tank outside instead of an oil tank hidden inside somewhere.
I would not think it would make a lot of difference. Electric heat, now THAT is an expensive heat source.