Nobody wants to buy a water heater they didn't need. And nobody wants to pay for a $300 repair on a tank that springs a leak three months later. So we give you the facts and let you make the call.
Here's the rough rule we use. If the heater is under 8 years old and the problem is a part (element, thermostat, thermocouple, valve), repair almost always wins. If it's past 10 years, rusty water is coming from the hot side only, or there's water seeping from the tank itself, replacement is the better spend. The gray zone is years 8 to 10. In that range, we look at the condition of the anode rod, how much sediment is in the tank, and what the repair costs are compared to a new unit.