{"id":19958,"date":"2020-11-30T19:26:27","date_gmt":"2020-12-01T03:26:27","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=19958"},"modified":"2026-04-15T00:10:50","modified_gmt":"2026-04-15T07:10:50","slug":"does-adding-a-fireplace-increase-home-value","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/does-adding-a-fireplace-increase-home-value\/","title":{"rendered":"Fireplaces Don\u2019t Add Value Like They Once Did, But You Can Still Enjoy One"},"content":{"rendered":"

You\u2019ve spent too many cold nights around the Netflix \u201cYule Log\u201d<\/a> and crave the warmth and comfort that only a genuine fireplace can offer. But if you start from scratch, the cost of building a traditional, wood-burning fireplace can cost up to $30,000<\/a>. Besides the ability to keep your feet nice and toasty and serve as a great holiday centerpiece, does adding a fireplace increase home value in a way that justifies the great expense?<\/p>\n

With our guide to modern fireplace trends and the value-add of this specialized upgrade, you\u2019ll get insights into how much value residential appraisers attribute to indoor fireplaces. In addition, we\u2019ll explore the shift away from fireplaces in new construction and offer ways to save money with non-wood-burning fireplace alternatives. If it\u2019s the glowy, cuddle-up-with-a-good-book vibe you\u2019re going for, you\u2019ve got more than one option (and none of them involves your TV!)<\/p>\n

\"Adding<\/a>
Source: (Gabriele Rampazzo \/ Unsplash)<\/figcaption><\/figure>\n

Overall, a fireplace adds minimal value these days<\/h2>\n

The widely used Uniform Residential Appraisal Report<\/a> includes a box where appraisers can check whether a home has one or more fireplaces or wood stoves. While some homeowners may use a fireplace for heating, the appraisal form considers it an amenity in the same category as a patio or deck, a pool, a fence, or a porch. So how does an appraiser value that amenity?<\/p>\n

Mason Spurgeon<\/a>, a certified general real estate appraiser since 2004 who handles appraisals in Missouri, Illinois, and Iowa, estimates that a fireplace may increase a home\u2019s value by a mere $500 to $1,000<\/b>, if at all. And that\u2019s in the Midwest, where freezing winter temperatures only enhance the cozy allure of an indoor fireplace.<\/p>\n

\u201cJust because the fireplace cost a lot of money to install does not mean that the market will place much value on it,\u201d Spurgeon says. \u201cIn lower to moderately priced homes, they are not expected and therefore rarely add to the value.\u201d<\/p>\n

Spurgeon adds that when he asks a homeowner if the fireplace works, the person answers something like, \u201cI\u2019m not sure, but I think so,\u201d indicating that the fireplace isn\u2019t a priority.<\/p>\n

\u201cMost homeowners are not very concerned about fireplaces, probably because they don\u2019t see as much use these days, and they would rather spend their money elsewhere.\u201d<\/p><\/blockquote>\n

A study from the National Association of Home Builders (NAHB) similarly found that only 16% of buyers<\/a> included a fireplace on their list of essential household items.<\/p>\n

The exception: Luxury homes and lodges<\/h2>\n

Rachel Massey<\/a>, a certified residential appraiser covering Ann Arbor, Michigan, and surrounding Washtenaw County, says the value of a fireplace depends on several factors, particularly your local real estate market and price range.<\/p>\n

\u201cFor a market of winter mountain lodges, I would expect there to be a resounding \u2018yes\u2019 in terms of it mattering, and the large stone fireplaces with rough-sawn timber mantels may be all the rage,\u201d says Massey. By contrast, a suburban tract house with a zero clearance fireplace<\/a> \u2014 a particular type of manufactured firebox \u2014 might offer little value beyond a buyer thinking \u201cthat\u2019s nice.\u201d<\/p>\n

Fireplace value also hinges on the home overall and how well the fireplace matches the home\u2019s quality. A large stone fireplace with a wood mantel is expected in a hunting lodge, but if the same fireplace was in a $200,000 home, it would be out of place and may even negatively impact the sale price, Spurgeon says.<\/p>\n

Outside of the woodsy lodge setting, fireplaces also make more of a value impact on homes in high-end neighborhoods, where a fireplace is often viewed as a design statement and baseline requirement for an upscale property.<\/p>\n

\u201cIf it\u2019s in the luxury market, it\u2019s something as an expectation as an amenity, so not having it, you wind up losing value,\u201d says Eric Forney<\/a>, a real estate agent serving Indianapolis, Indiana, who sells properties 38% quicker than the average agent in that area.<\/p>\n

Statistics from NAHB confirm that fireplaces are less common at the lower end of the housing market because of the challenges of keeping new homes affordable. Only 7% of new single-family homes in 2018 that were priced under $150,000 had fireplaces<\/a> compared to more than 60% of the new homes that year priced at $500,000 or above, NAHB reports.<\/p>\n

\"Christmastime<\/a>
Source: (Element5 Digital \/ Pexels)<\/figcaption><\/figure>\n

Lack of practical use, added cost hurts fireplace appeal<\/h2>\n

In 2014, the EPA estimated that there were more than 17.5 million fireplaces nationwide<\/a>. By 2016, that estimation had dropped to 13 million<\/a>. Although the EPA lacks more recent stats on total fireplaces nationwide, data from the new construction sector would indicate that fireplace popularity continues to wane.<\/p>\n

In 2018, builders put fireplaces in only 41%<\/a> of single-family homes, compared to 57% in 2001, according to an annual analysis of U.S. Census data from NAHB.<\/p>\n

Forney shares anecdotally that his new construction buyers have been willing to forgo the cost of installing a fireplace to save money. \u201cIt\u2019s not adding the value on resale that maybe it once did,\u201d he says. \u201cWe don\u2019t see a lot of actual day-to-day use from fireplaces in our market. I feel like they get used around Christmastime when they look nice.\u201d<\/p>\n

In addition to the affordability factor, Spurgeon notes that \u201cfireplaces have been labeled outdated due to their cost to install and upkeep, and the advancement of modern efficient heating systems.\u201d The National Fire Protection Association recommends homeowners do a chimney sweep once a year to check for deposits and correct clearance<\/a>, which calls for writing a $244 check on average each time<\/a>.<\/p>\n

I still want a fireplace: How much are we talking?<\/h2>\n

\u201cFor me personally, a fireplace is a big deal,\u201d shares Massey. \u201cI would be hesitant to buy a house without one because of how much I like to snuggle up around one in the dead of winter.\u201d<\/p>\n

If you\u2019re in Massey\u2019s fireplace-enthusiast camp, you\u2019ll find that the cost to install your dream fireplace depends on whether you desire wood-burning, gas, or electric, as well as whether you have any kind of existing fireplace setup.<\/p>\n

The less fireplace infrastructure you have to work with from the start, the costlier and more complicated this home improvement project will be.<\/p>\n

You should also check with your homeowners’ association, fire department, and local municipality about any building codes regarding fireplaces and types of installation. Then, call your homeowner’s insurance company<\/a> to ask about how a fireplace will impact your policy, similar to how a backyard firepit<\/a> can change your coverage.<\/p>\n

When you\u2019re ready to install that fireplace, consult this brief overview of several different types of fireplaces and what you can expect to spend:<\/p>\n

Wood burning<\/h3>\n

A wood-burning fireplace has a lower utility expense<\/a> but requires the most involved installation from the ground up. As we mentioned before, building a wood-burning fireplace anew can cost as much as $30,000<\/a>, including the chimney, chimney liner, masonry, and labor, according to HomeAdvisor.<\/p>\n

A wood-burning fireplace also needs frequent maintenance, particularly to remove creosote<\/a>, a tar-like deposit from burning wood that remains in your chimney and can be dangerous if not removed. Keep in mind, with that kind of money you could also do a sizable upgrade to your kitchen<\/a> or main bath<\/a>.<\/p>\n

Wood-burning stove<\/h3>\n

A wood-burning stove can be inserted in an existing chimney and masonry. These come in different varieties (circulating, combustion, and radiant heat), costing about $325 to $4,000 for the units themselves<\/a>.<\/p>\n

Gas<\/h3>\n

A gas fireplace requires less maintenance, but you may need to install a gas line if you choose a vented model. (Ventless<\/a> options also are available.) You should figure about $3,500<\/a> for the unit and installation, plus the utility costs of gas.<\/p>\n

Electric<\/h3>\n

Electric fireplace sales have been on the rise in recent years, with about 832,000 retail units sold in 2018<\/a>, statistics show. An electric fireplace generates a higher utility bill but is easy to operate and maintain.<\/p>\n

The cost includes the unit itself, plus wiring. Since it uses electricity, it doesn\u2019t generate any harmful emissions. A glass-front 5000 BTU insert firebox with a stone bed that uses an existing 120V outlet costs an average of $900<\/a> nationwide for the unit and installation, according to Fixr.com.<\/p>\n

Fireplace insert<\/h3>\n

If your home has an older, open-combustion fireplace, you can upgrade to a fireplace insert<\/a> \u2014 a self-contained unit<\/a> inserted into an existing firebox. These can burn using wood, propane gas, pellets, or electricity, and range in price from about $225 to $2,200, not including installation<\/a>.<\/p>\n

\"Maintenance<\/a>
Source: (Gabor Tinz \/ ShutterStock)<\/figcaption><\/figure>\n

Tips for maximizing the value of your fireplace<\/h2>\n

If your home already has a fireplace, it\u2019s not going to hurt your property value so long as it\u2019s in good shape. \u201cA fireplace may help a property sell faster because of the way it makes people feel, like a large tub in the master bathroom,\u201d Spurgeon says.<\/p>\n

Here\u2019s how you can make sure it\u2019s marketable and show potential buyers the appeal:<\/p>\n

Keep up with routine maintenance<\/h3>\n

Forney says he often sees a number of inspection challenges with a brick chimney or a wood-burning fireplace come up in a real estate transaction, and sometimes inspectors will call for an additional chimney or fireplace inspection.<\/p>\n

To avoid raising red flags with your fireplace, The Chimney Safety Institute of America has three different levels of recommended chimney inspections<\/a> based on use, how often your venting system or fireplace has changed, and whether your home is for sale.<\/p>\n

The organization also has guidelines for hiring a professional chimney sweep. Other recommended fireplace and chimney maintenance<\/a> includes having a wire-mesh cap atop the chimney to keep out birds, squirrels, and debris, plus removing excess ashes.<\/p>\n

Go with gas<\/h3>\n

Spurgeon says that the type of fireplace (wood, gas, electric) doesn\u2019t appear to have an impact on the value-add, though it should be noted that a removable fireplace<\/a> falls into the \u201cpersonal property\u201d camp and will not be included in an appraiser\u2019s valuation at all.<\/p>\n

However, from a marketability perspective, the 2019 edition of NAHB\u2019s What Home Buyers Really Want <\/i>study found that 55% of homebuyers<\/a> found gas fireplaces desirable, compared to 48% of homebuyers<\/a> who liked wood-burning fireplaces. Plus, gas is substantially cheaper, according to the cost estimates we gathered above. So you\u2019re spending less upfront and potentially gaining more from your investment as far as buyer appeal.<\/p>\n

Deal with structural problems prior to listing<\/h3>\n

If you need to remove a chimney or fireplace because of a structural problem or to create more open space, expect to pay about $500 to $2,000 for a partial removal or demolition<\/a>, or roughly $4,000 to $6,000 for a complete removal<\/a>. In either case, experts recommend hiring a structural engineer beforehand for about $500<\/a> to assess the project professionally.<\/p>\n

Use simple staging techniques<\/h3>\n

We recommend following this pre-listing fireplace prep list:<\/p>\n