Do fireplaces add value to a home?

Is there anything better than cozying up next to a roaring fire with your loved ones on a chilly winter’s night? It’s easy to see why any homeowner may be considering adding a fireplace to their house or why potential homeowners may seek out a home with a fireplace already built in. Fireplaces come with many personal benefits, you may be wondering if it's worth installing one before you sell, especially since there are some home improvements don't add value to a home’s future sale price.

What is the appeal of a fireplace?

Fireplaces have a unique way of transforming a house into a home. The crackling sound of burning wood, the flickering flames, and the radiant heat create a warm (quite literally) and cozy atmosphere. 

Beyond their practical use, fireplaces serve as architectural focal points, enhancing a home's aesthetic appeal. From traditional wood-burning fireplaces to modern, energy-efficient electric ones, the options are diverse, catering to various tastes and styles. Even a simple wood stove can catch your eye and make a home feel a bit more comfy.

What’s the average value added by a fireplace?

According to a survey conducted by Angi in 2016, a significant 70% of real estate agents considered fireplaces to be a valuable addition to a home. Additionally, a staggering 77% of potential buyers expressed their willingness to pay a higher price for a home that already had a fireplace. 

A majority of real estate agents believed that having an indoor or outdoor fireplace could increase a home's value by anywhere between $1,000 and $5,000. Surprisingly, only about 35% of buyers shared this perspective. Nearly a quarter of the respondents felt that a fireplace warranted an additional value of no more than $1,000, while 23% of buyers were not inclined to pay anything extra for a home with a fireplace already in place.

What’s the cost of adding a fireplace to a house?

Installing a fireplace typically ranges from $500 to $5,000. It’s a bit hard to say if adding a fireplace guarantees a large enough ROI boost to cancel out fireplace installation costs, but if you are going to stay in the home for many years, you need to consider how much use and enjoyment you stand to gain from it. The type of fireplace you choose to install can also impact how much you need to invest. Please also keep in mind that your location, the professionals you hire, and the chosen materials can all impact how much you actually spend on a fireplace installation. 

Fireplace costs by type

• Wood-burning fireplace: $2,000 to $5,000 (excluding chimney installation, which can add $3,000 - $10,000 or more)
• Gas fireplace: $2,500 to $7,500 (direct vent gas fireplace)
• Electric fireplace: $500 to $3,000
• Fireplace insert: $2,000 to $4,500
• Ethanol fireplace: $1,000 to $3,000

Different types of fireplaces explained

There is no one best or most valuable type of fireplace to have in a home. Which type of fireplace appeals to the next homeowner can depend a lot on their personal preferences. Here is a closer look at popular fireplace types and what makes them stand out. 

Wood-burning fireplaces

Wood-burning fireplaces hold a timeless charm and are appreciated by buyers who enjoy the traditional crackling sound and aroma of burning wood — especially during the holidays. Homes with well-maintained wood-burning fireplaces may see an increase in resale value, particularly in colder areas.

Gas fireplaces

Gas fireplaces are valued for their convenience, cleanliness, and energy efficiency. Homes equipped with efficient gas fireplaces tend to attract buyers seeking hassle-free heating solutions. This convenience can positively influence the resale value of a home.

Electric fireplaces

Electric fireplaces gained popularity in recent years due to their modern designs, ease of installation, and versatility. While they may not offer the same warmth as traditional fireplaces, their aesthetic appeal and flexibility in placement can enhance a home's overall ambiance, potentially impacting resale value, especially in urban areas or homes with limited space.

Fireplace inserts

Fireplace inserts, which can be woodburning, gas, or electric, are valued for their efficiency in transforming existing fireplaces. They enhance heating capabilities while maintaining the charm of a traditional fireplace. Homes with well-installed fireplace inserts can see a positive impact on resale value.

Ethanol fireplaces

Ethanol fireplaces, which burn clean and do not require a chimney, offer a modern and eco-friendly option to homeowners. While they might not significantly impact resale value on their own, their presence can appeal to environmentally conscious buyers, especially in areas where sustainable living is a priority.

What affects the value of a fireplace?

Several factors can influence the value of a fireplace in a home, making it a more appealing and valuable feature for potential buyers. 

• Quality of materials and design: Fireplaces made from premium materials like granite, marble, or custom stonework tend to add more value. Quality craftsmanship and attention to detail in the design contribute significantly to the overall appeal.
• Maintenance and condition: Regular maintenance, such as cleaning and ensuring the firebox is in excellent condition, enhances the fireplace's value. A fireplace that has been well cared-for suggests to buyers that it's in good working order.
• Energy-efficient features: Fireplaces with energy-efficient features like heat-circulating blowers or thermostatic controls are more desirable. These features not only make the fireplace more environmentally friendly, but also help reduce heating costs, increasing its value.
• Aesthetics and placement: A well-placed fireplace that serves as a focal point in a room can significantly enhance the aesthetic appeal of a home. Unique designs, such as floor-to-ceiling stone or a stylish mantel, add character and value.
• Type of fireplace: While personal preference plays a role, gas fireplaces are often favored for their convenience and cleanliness. Wood-burning fireplaces, however, appeal to those who appreciate the traditional experience. Electric fireplaces, with their modern designs and easy installation, are becoming increasingly popular.
• Safety features: Fireplaces equipped with safety features like glass doors, spark guards, and proper ventilation systems are valued higher. These features provide peace of mind to homeowners, especially those with families.
• Compliance with building codes: Ensuring that the fireplace installation meets local building codes and regulations is crucial. A fireplace that is legally installed and safe gives potential buyers confidence, positively impacting its value.
• Local market preferences: Local trends and preferences also play a role. For example, in colder climates, functional fireplaces might be more highly valued, while in warmer regions, fireplaces might be seen as decorative features and valued accordingly.

Is installing a fireplace worth it?

When trying to decide if buying a home with a fireplace is a priority or whether you want to add this project to your renovation to-do list, you may want to keep home value and personal value top of mind. On a personal level, if you appreciate the cozy ambiance and warmth it offers, a fireplace can enhance your living space, making it a valuable addition. Additionally, in regions with cold winters, it can serve as a practical heating source, adding to its appeal. 

If ROI is top of mind, you will also want to consider the local real estate market. If fireplaces are in demand in your area, they can significantly boost your home's resale value. However, if you live in a warmer climate where a fireplace may not be a necessity, the cost and maintenance involved may outweigh the benefits. Do some research on your local housing market, as well as fireplace regulations in your state or local municipality. For example, in California, a rule established by the Bay Area Air Quality Management District in October 2015 prohibits the installation of wood-burning heating devices, including fireplaces, stoves, or fireplace inserts, in new construction houses. This regulation aims to address air quality concerns by restricting the use of wood-burning appliances, thereby promoting cleaner and more environmentally friendly heating options in newly built homes, but this rule can be a major turnoff for some homebuyers. If you buy an older home in that part of the country with a wood-burning fireplace, you have quite a valuable fireplace on your hands. 

It's crucial to evaluate your personal preferences and the specific needs of your household before deciding whether a fireplace is worth the investment, ensuring it aligns with both your lifestyle and potential future resale value.

FAQs

Here are a few more details about the value of fireplaces in homes. 

Q: Do fireplaces add home value?

Yes, fireplaces can typically enhance a home's value since they’re largely appealing to homebuyers. 

Q: Can adding a fireplace increase my home's resale value?

Fireplaces can be a desirable feature, potentially setting your home apart from others in the market and leading to a higher resale value, but keep in mind that you may not necessarily recoup the costs of installing it, which can run high.

Q: Does having a fireplace increase your insurance?

As charming as a crackling fireplace is, having one can lead to increased homeowners insurance premiums. Fireplaces, especially wood-burning ones, pose a higher risk of accidental fires, which is a concern for insurance companies. How much your premiums are affected will vary based on the type of fireplace, safety features installed (such as spark guards and glass doors), your location, and the insurance company's policies. Reach out to your insurance provider for more details about premiums and if there are any safety measures you can implement to mitigate potential costs.

Q: Are there regions where fireplaces are more valued in homes?

 Yes, regions with colder climates often place a higher value on fireplaces, as they serve both functional and aesthetic purposes, providing warmth during colder seasons.

Q: Can you add a fireplace and chimney to your home?

In many cases, yes. Consulting with a professional contractor is crucial to assess the feasibility and cost of adding a fireplace and chimney to your home. Factors such as existing infrastructure and local building codes should be considered.