A tankless heater makes hot water as you use it instead of keeping a tank full of it hot all day. The hot water does not run out and you get the floor space back. It is a bigger job than swapping a tank, so here is what is genuinely involved.
First, it is not a straight swap. A tankless unit fires hard and fast the moment you open a tap, so it usually needs a larger gas line than a tank did, and it needs its own venting. That work is the real difference between a tankless quote and a tank quote, which is why the two numbers are not comparable on their own.
Second, the water here is hard. Hard water leaves scale inside the heat exchanger, and scale is what kills tankless units early. They are built to be flushed, it takes about an hour, and doing it on a schedule is the whole difference between a unit that lasts and one that does not. If you are putting one in, ask us about a softener at the same time.