How Adding a Fireplace Increases Your Home Value
Buying a home is an investment. When purchasing a home, it’s important to always think about your return on investment (ROI). There are a number of things you can do to add value to home, many of which in the long, pay for themselves. One such thing is adding a fireplace. Installing a fireplace can immediately boost the value of your home.
People want fireplaces
According to a 2013 survey from the National Association of Realtors, 40% of new homebuyers are willing to pay more for a home with a fireplace and are willing to pony up an addition $1,400 for a home with a fireplace. The demand for fireplaces is trending upward and many speculate that homes with fireplaces will become more and more popular as people nowadays are spending more time on phones and tablets instead of watching tv. In that event, a room with a fireplace is a perfect place to post up and veg.
Similarly, a survey from the National Association of Home Builders found that over three-quarters of homebuyers are looking for homes with a fireplace in the family room. The second most desired place to a fireplace is the living room according to the survey, as homeowners want their guest to enjoy it as well.
Home type and locations
It goes without saying that the value added by a fireplace varies by home. Depending on what kind of home you have, your fireplace may prove to be more valuable. For more high-end homes, people will expect fireplaces and will certainly be willing to pay more. However, for more modest homes, a fireplace may not end up adding much value. Take where you live and what kind of home you have into consideration when installing a fireplace. Know that your value added will vary.
How much does it cost to install a fireplace?
As with most things, the cost of adding a fireplace to your home varies. The cost of installation can run anywhere from a few hundred dollars to several thousand. This depends on the style of the fireplace and where you put it in. According to Homeguide, A natural gas or propane unit typically costs between $2,300 and $4,000 while a traditional wood burning fireplace usually runs around $1,900 to $3,300. Electric fireplace can cost significantly less with prices ranging from as little as $100 to $2,200. Another thing to keep in mind is placement. Where you install your fireplace can affect your final cost. In some cases, an in-wall installation can cost an additional $5,000.
Where to install?
If you want to get the best bang for your buck, the rule of thumb is to put your fireplace in the most used room in the house. The living room or great room tend to be the standard spots. Sometimes you may want to enhance the look or feel to a room such as an office or den. Having a fireplace in either of those may prove to be a rewarding investment when you sell your house. All things considered, homeowners can easily recover 100% of the cost to install their fireplace. The National Association of Real Estate Appraisers, adding a fireplace to your home can increase its value by 6-12%.
Investing in your home is important. When you buy real estate, in most cases you will eventually end up reselling it. As such, it’s crucial to take steps to increase the value of your home to get the best return on investment. Adding a fireplace may seem like a small feat, but everything adds up. Installing a fireplace is relatively easy to do and can immediately value to your home.