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Your chimney comes with dampers, which are similar to air vents. Dampers are metal plates that allow hot air and smoke to flow from the fireplace up your chimney and out of your home. When you close the damper, it prevents cool air from getting into your home. This is why you’ll want to check to make sure your damper is open before starting your fireplace and you want to ensure it’s closed after the fire goes out. You can open and close them via an external knob, pull chain, or lever. 

Wood is classified as either hardwood or softwood. For firewood, hardwoods are generally the best choice as they tend to burn longer, hotter, and produce less smoke than softwoods. Recommended hardwoods include oak, hickory, maple, cherry, ash, beech, birch, elm, and walnut. Oak is a particularly good option as it's widely available, slow-burning, and doesn't produce much smoke or sparks. Some woods, like oak, hickory, and cherry, also emit a pleasant scent. It is best to avoid softwoods such as eucalyptus, poplar, and willow, as they create a lot of smoke and have a high moisture content that makes them difficult to light and burn efficiently.

Gas-powered fireplaces seem to be the most desirable type for homebuyers, per a Redfin report on homebuying trends. That said, any fireplace that has been maintained well and is in safe, working condition could be a draw for buyers, regardless of whether it uses wood logs, propane, or electricity as fuel.

One disadvantage of a wood furnace is that you need a constant supply of wood to run it. Even if you have a good amount of wood on your property (or have another way to get affordable wood), you’ll still need to chop it, store it, and re-fuel your furnace with it to keep your house heated.