With the real estate market on the upswing, many homeowners have begun to consider upgrading their homes after a period of stagnation that was felt nation-wide. While the bathroom and kitchen are probably the first home renovations that come to mind, you may surprise to learn just how much a fireplace can add to the resale value of your home.
Whether you are considering this upgrade as part of a home staging effort or simply looking to invest your money wisely, a new fireplace will instantly recoup your expenses. This home renovation is often overlooked and could be the spark that your home has been missing!
Increasing Your Home Value With A Fireplace
The National Center for Real Estate Research found that fireplaces can increase the average home value by 6-12%. Modern electric fireplaces can be installed in 15 minutes and instantly affect the value of your home.
As the focal point of every home, the hearth serves as a gathering point for all to warm up around. There is a natural allure that turns a house into a home. This can be a draw for homebuyers who are searching for a home that they can connect with on an emotional level. In fact, the National Association of Home Builders (NAHB) found that the majority of surveyed homebuyers considered the fireplace as an essential or desirable feature. This number has increased over the past few years.
Furthermore, 40% of homebuyers said that they would even pay extra for a house with a fireplace. This is according to the National Association of REALTORS 2013 Survey. The fireplace is one of the most preferred features of a home and failing to upgrade could lead you to miss out on an easy financial opportunity.
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Valuing the ROI on your new fireplace can be a bit tricky because fireplaces aren’t calculated separately during a home appraisal. As with any home renovation, your upgrade is relative to the overall value of your home. Installing the same fireplace in two different homes will not necessarily equate to the same increase in resale value.
Upscale homes are expected to have a fireplace so the absence of this feature could negatively impact pricing on such homes. The U.S. Census Bureau reported that 49% of new homes include at least one fireplace. In recent years, this number has slipped as a result of developers choosing to skip out on a fireplace in an effort to reduce costs. This could be an excellent opportunity for you to maximize your homes inherent qualities!
Tips On Choosing the Right Fireplace
There are a plethora of routes to go when installing/replacing your fireplace. You can choose from eco-friendly gel fireplaces or opt out for an energy-efficient electric fireplace. While the latter may be of some concern due to rising electric costs, you can save money on electricity by signing up for a Solar PPA. Rest assured, electric fireplaces are still more efficient than wood and gas fireplaces. This post will help you decide if an electric fireplace is right for you!
Traditional brick hearth and mantel fireplaces can cost upwards of $30,000, comparable to that of a full kitchen remodel without the same return. For those who are interesting in the natural ambiance that a real fire provides, you can still enjoy the benefits of an environmentally friendly fireplace that features a dancing flame. Gel fireplaces can be installed in the living room, dining room, or even the bathroom!