what kind of water heater state direct vents cost about that installed being in a attic might be you need external air for combustion,and there not cheap.but Id check on the lie about to small to have a energy rating.

Definitely get another estimate.
Water heaters only cost a few hundred dollars.

Here is a 40 gallon from Lowes for instance…
As you can see, it is under $300.

Your install may cost alittle more due to the fact it is in the attic??
Add even $300 for install and you are at under $600.

Make a few more calls and get some estimates over the phone. Explain the size and location of your heater, also gas or electric.
Call Home Depot if you have one near you. Or Sears.
Good Luck.
=-1&storeId=10051&catalogId=10053

Electric heated or gas? Easy access or crowded? Simple swap-out or renevation? A simple swap-out should not cost more than $450-at most. Better tanks are available,and may add a $100 to the cost of the part,but the fact is it does not add any more labor cost to the swap. I say anything above $450 is a blatant rip-off!

Get another bid. We replaced our 50 gallon soon after moving in and it cost around $500. Granted, our wasn’t in the attic, but that should hardly cause a $1200 delta.