Does a Fireplace Add Value to a Home? Here’s What You Need to Know

Key takeaways: 

• Fireplaces can add value, but it really depends. On average, homes with fireplaces sell for about 13% more, but the actual extra value you get is usually between $1,000 and $5,000 — sometimes less.
• Location plays a big role. If you live in a colder area, a fireplace is often seen as a must-have and adds more value. In warmer places, it’s more of a nice bonus than a dealbreaker.
• The type and condition of the fireplace matter. Gas fireplaces are popular because they’re easy to use and low-maintenance. Electric ones are affordable and simple, while wood-burning fireplaces give that classic charm but need more upkeep.
• Where you put the fireplace makes a difference. Fireplaces in living rooms or family rooms catch buyers’ attention more than ones tucked away in bedrooms or basements.
• Installation costs vary a lot. You could spend anywhere from a couple hundred bucks for an electric unit to up to $10,000 for a gas fireplace. Hiring a pro is definitely worth it for safety and to make sure everything’s up to code.

If you’re thinking about home improvement projects to boost your home’s value, you may find yourself asking: Does a fireplace add value to a home? The truth is: it depends. Factors like location, cost, type of fireplace, condition, placement, and local market preferences all play a role.

In this Redfin real estate guide, we’ll walk you through what the data says about how much value a fireplace can add. So, whether you’re in Bend, OR, or Denver, CO, you’ll gain some insight on whether it’s worth the investment.

Does a fireplace raise the value of a house? 

Did you know that, on average, homes with fireplaces are listed for 13% more than the national median sale price? And, according to Angi, fireplaces are a popular feature — about 70% of real estate agents say they add value, and 77% of buyers say they’d pay more for a home that has one. 

Great news right? But here’s the catch: the actual value added might not be as high as you’d expect. Most agents estimate that a fireplace adds between $1,000 and $5,000 in value, yet only about 35% of buyers agree. In fact, nearly a quarter of buyers think a fireplace is worth $1,000 or less, and some aren’t willing to pay extra at all.

There are several factors that can affect the ROI of installing a fireplace. We’ve broken them down below.

Key factors that impact how much value a fireplace adds

• Location: Fireplaces add more value in colder climates. In warmer areas, they’re a bonus, not a must-have.
• Installation cost: High installation costs may offer minimal ROI if not balanced by resale value.
• Type of fireplace: Gas and electric are low-maintenance and energy-efficient, while wood-burning fireplaces are traditional but require more upkeep.
• Condition: Well-maintained fireplaces add value; outdated ones can deter buyers.
• Placement: Fireplaces in main living areas — like the living room or family room — are generally more desirable than those in bedrooms or basements.
• Buyer preference: Local demand varies — some buyers love fireplaces, others see them as a hassle.

What do you need to do before getting a fireplace installed?

Before jumping into a fireplace installation, it’s a good idea to understand a few key things, especially when it comes to safety, placement, and local regulations.

Here are some things to keep in mind:

• Do I need a permit? In many areas, yes, especially for gas or wood-burning fireplaces. Permits make sure your setup meets safety codes and local building requirements. It’s best to check with your city or county before getting started.

• Can you put a fireplace anywhere in your home? Not quite. Where you can install it depends on your home’s layout and what type of fireplace you’re going with. Gas and wood-burning options often need venting or a chimney, while electric fireplaces are more flexible.

• Should you hire a professional fireplace installer? Definitely. For anything other than a plug-in electric unit, it’s smart (and often required) to have a licensed professional handle the installation. It keeps things safe, code-compliant, and may even be necessary to keep your warranty valid.

How much does it cost to install a fireplace? 

According to 2025 data from HomeGuide, the average cost to install a fireplace varies based on type and complexity:

• Electric fireplace: $200 – $3,000
• Wood-burning fireplace: $1,900 – $3,300
• Gas fireplace: $2,300 – $10,000
• Masonry fireplace: $3,500 – $5,600

These estimates include both materials and professional installation. It’s important to be mindful that the total cost can fluctuate depending on factors such as the complexity of the installation, the materials chosen, and any additional features like custom mantels or hearths. It’s advisable to consult with a professional to determine the type and materials that best fit your needs and budget.

We’ll break down each of these types of fireplaces and their pros and cons below.

Types of fireplaces: pros and cons

 

Type	Pros	Cons	Best for
Gas	Clean, efficient, easy to control.	Higher cost, needs venting and gas lines.	Real flames without the wood.
Electric	Low-maintenance, budget-friendly, plug-and-go.	No real flames, won’t work if power’s out.	Homes without chimneys.
Ethanol	Vent-free, modern look, easy setup.	Low heat, limited flame control.	Small or ventless spaces.

Data source: Angi

Tip: Factor in both upfront and long-term costs like fuel and maintenance. Choose a fireplace that fits your home’s layout, energy needs, and budget for the best value.

What do buyers look for in a fireplace?

Out of all the 10 most popular home features* homes with fireplaces average the most views per listing at 733 views. Fireplaces do a great job at keeping your home warm and cozy without increasing your electric bill. So, make sure to build it in an area that’s regularly used, such as a family room or living room. These high-traffic areas will make the fireplace a focal point and add to the room’s ambiance.

How to find a qualified fireplace installer

Hiring a professional fireplace installer can save you time, stress, and costly mistakes — especially when you’re dealing with things like venting, permits, and fuel lines. Before making a decision, take some time to do your research. Look for licensed and insured installers with at least a few years of experience working specifically with fireplace inserts. Read reviews, ask for references, and get a few quotes to compare.

It’s also smart to ask the right questions up front, like whether they handle gas or electrical work, if permits are included, and what kind of warranty they offer. You’ll want someone who’s not only qualified but also clear about the full scope of work.

Ask neighbors for recommendations or check with your local real estate agent; they often have go-to pros they trust. Whether you’re upgrading for comfort or getting your home ready to sell, the right installer can make all the difference.

FAQs: Does a fireplace add value to a home?

Does a fireplace really add value to a home?

It can — just not always as much as you might think. Homes with fireplaces are often listed for more (on average, about 13% above the national median), and most real estate agents agree they’re a plus. But when it comes to actual dollars, most say a fireplace adds somewhere between $1,000 and $5,000 in value.

What kind of fireplace adds the most value?

It depends on your home and your buyers. Gas fireplaces tend to be the most appealing because they’re easy to use and low-maintenance. Electric ones are super flexible and affordable. Wood-burning fireplaces have that classic charm, but they do require more upkeep.

What do buyers really care about when it comes to fireplaces?

Buyers love fireplaces that are clean, modern, and in the right spot, usually the living room or family room. Listings with fireplaces actually get more views than any other top home feature. If it looks good and works well, it could give your home a real edge.