A fireplace can increase a home's value by as much as 12%, with some reports indicating that homes with fireplaces list for around 13% more than the median sale price. Fireplaces are both functional and aesthetically pleasing, adding a charm that many homebuyers find desirable. The actual return on investment depends on the fireplace's size, type, and material.

However, a fireplace can detract from a property's value if it is unusable, not up to code, or in need of immediate repairs. The type of fireplace also matters; custom electric fireplaces and inserts can add value, while freestanding units that can be removed have less impact.

The cost to install a pre-fabricated gas fireplace ranges from $2,000 to $7,500. The final price is influenced by several factors, including the specific model and size of the unit, the complexity of the venting, labor rates, and whether any structural modifications are required.

A fireplace is, by definition, an enclosed space where you burn wood or other fuel for the purpose of generating light and heat. A firepit burns wood and is much less expensive to build, but they aren’t technically a fireplace as it isn’t enclosed. An outdoor oven—commonly outdoor brick pizza ovens—often uses wood as fuel, but its primary purpose is to cook food, and you’d rarely just burn wood inside them for warmth or aesthetic reasons.

Fireplace inserts have several potential disadvantages. The cost of the insert and its installation can be a significant investment, as the process can be complicated and expensive, particularly if modifications to the existing fireplace are necessary. Aesthetically, some people find that inserts lack the traditional look and authentic ambiance of an open, crackling fire. There are also ongoing costs for maintenance, cleaning, and fuel. Fuel type can be a limitation; for example, an insert may be unusable if you don't have access to its specific fuel source. Maintenance and repairs can also require specialized services, especially for gas or electric models. Finally, while an insert is more efficient than an open fireplace, it may not heat a home as evenly as a central HVAC system.