Fireplaces Increase the Value of Your Home Fireplaces Increase the Value of Your Home
The value of a fireplace to the price of a house is substantial. A fireplace is one of the top six features an appraiser looks for when establishing the market value of a house and one of the most requested features of home buyers. A fireplace can potentially return thousands of dollars on your investment. In addition, the home-heat savings and environmentally friendly aspects of fireplaces can make a house more attractive to buyers, adding more value beyond dollars.
- Home ValueThe value a fireplace adds to the price of a house can be seen in a formuladeveloped by the National Association of Home Builders. The NAHB developed itsHome Price Model in 2004 to show how certain features affect the price of ahome. The standard “southern suburban” home used in this formula included afireplace and was priced at $176,415. When the home price was figured without
the fireplace the value dropped to $156,332, according to NAHB.
- Value in RemodelingThe value of a fireplace to the price of a house can be achieved throughremodeling, as well. According to the website RemodelorMove.com, the additionof a new fireplace can add between $1,800 and $7,200 to the selling price of yourhouse. A fireplace update or upgrade can earn a 50 percent to 80 percent returnon investment, adding $1,500 to $6,400 to your home’s value.
- Energy EfficiencyThe value of a fireplace to the price of a house extends beyond resale value.Buyers like the homey atmosphere created by a fireplace. They also like thesavings they would likely experience on their heating bills. Fireplace inserts cansave between 20 percent and 40 percent off annual heating costs when used tosupplement an average central furnace system, according to the Hearth, Patio andBarbeque Association. One retailer, Alaska Fireplace and Accessories, claims a 100
percent payback on its products between two and four years.
- Tax SavingsWhile it doesn’t add value to a home’s sale price, tax credits for fireplaces increasethe value of the investment for the builder. New fireplaces or fireplace inserts areeligible for a federal consumer tax credit intended to spur investment in energy-efficientequipment. The Federal Tax Credit for Consumer Energy Efficiency coversup to 30 percent of the cost of qualified fireplace inserts (with a cap at $1,500),according to the U.S. government’s Energy Star group.
- Psychological Value
If you are trying to sell your home in winter months, a fireplace is a hugeadvantage. It evokes an immediate feeling of warmth, both physical andpsychological, to interested buyers and open house visitors. This could provide adistinct selling advantage over other houses on the market.
© 2013 Matchless Stove and Chimney