How to Add a Fireplace for Home Value

Contact the local city building committee for the city or township of residence. Inquire about the cost of building permits for the addition of a fireplace. Write this information down and keep it when factoring the cost versus home value calculation.

Find a flat wall in your home. Measure approximately four feet across and four to five feet up on the wall to ensure that the space accommodates the addition of the fireplace. If it does, take the next step.

Contact local building professionals. Discuss the options of adding a wood-burning fireplace versus a gas fireplace. The cost of fireplace additions, including labor, range from a few hundred dollars to over $20,000, according to House Logic. Alone, fireplace units are about $1,000 in price. Write down estimates of charges from at least three contractors regarding fireplace installation.

Review the facts about adding value to a home. Adding all of the cost considerations that go along with having a fireplace installed, research the statistics from the National Association of Realtors. In 2007 survey, 46 percent of home buyers agreed that they would pay a median $1,220 price increase for a fireplace addition. Overall, a fireplace does increase the value of a property, but the rule of thumb and expert advice is to equate the benefit to the overall price. For example, fireplace additions in homes over $500,000 could prove to be a excellent value addition, whereas fireplaces in $100,000 homes are not likely to recoup the value. Using your cost projections for the improvement and your tax-appraised value---received annually from your mortgage company or tax assessors office---determine the cost versus benefit analysis.