DW/DH are buying a new home with thankless water heater (this is new to both of us)...
Seems to me a "thankless" water heater is to be avoided at all cost.
Sorry, I could not resist.
If your electric plan has a demand-based rate, I suspect the tankless heater will cost more to operate than a conventional heater, unless you refrain from using any hot water during peak-rate hours. A tankless heater draws a LOT of power to heat water in a hurry. Of course I am talking about electric heaters, and not gas-fired ones.
Where I am, electricity in the summer costs 3x during the period of 2PM-8PM, compared to the rest of the day. Prior to having my DIY solar, I used a timer to switch off the water heater during the above period. The 50-gallon capacity was plenty to use during the off period.
The water heater is now run off the solar power, and I do want it to run during the sunlight hours to use up the produced solar power, instead of storing the juice in the battery and using it later. This is more efficient (less power loss), and saves wear and tear on the battery.
PS. By the way, many of the European Airbnbs we stayed at had a tankless water heater, with most of them running on natural gas. I could tell by the roaring flame when they turned on. I did not like them. The water flow had to be just right, or the water was too hot or too cold. This was despite the units trying to modulate the flame to match the heat production to the water demand. Maybe these were cheap units, I don't know.