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Depends on how it was installed in the first place.
Where's it located?
EG: in a garage with no stand under it.
Inside a home with no pan with an outside drain.
No drip leg in the gas line.
As you well know by now pictures sure help.
 

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No idea what your local codes are but a lot of that would never pass here.
There's no drop leg on the gas line, no pan running to a floor drain, miss aligned vent, not seeing a ball valve on the cold water inlet, no flex line from the main to the heater, no shut off on the gas line.
 
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Has he actually looked at the current situation ? I would expect to pay more than that for replacing an existing code compliant installation . That is not. Heck he has to spend at least 30 minutes to go pull the permit. I am not a pro, but that vent kind of scares the hell out of me. I would make sure my army of CO detectors were working . Not only does he need to remove the the existing water heater from behind other plumbing and appliances and get the new one back in there (probably at least a half hour by two guys) , he has to redo the gas line and vent at the bare minimum . I don't have gas and never hired a plumber to to this kind of thing but I have hired them to other things , much smaller and less work and the price was a lot more than that. I guess in my area if a plumber quoted me 400 or 500 bucks to install in this situation I wouldn't be surprised. Maybe more. I don't how much work it would be to fix that vent situation .
 

· RETIRED MASTER PLUMBER,
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As well as the other things post above,
Many times there are things that have to be done to bring a new heater up to
today's code, it is not always a mater of pull one out and stick a new one back in,
there is NO SUCH THING AS GRANDFATHER IN when you buy a new car it has to be built up to today's standards same as with new appliances installed
 

· In Loving Memory
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Non compliant chimney????
By code. chimney is not allowed to be more then 7 times the smallest appliances breech opening. So a 3" breeched/draft hooded/dilution hooded water heater. May not be connected to a flue pipe or chimney that is more then 49 sq in in cross section.
 
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