Does an electric fireplace add value to your home? 

Most homeowners rarely think of fireplaces when it comes to increasing their property’s value. Instead, they focus on their kitchen, yards, and bathrooms. However, in recent years, electric fireplaces have also become a highly sought-after commodity. Thanks to their ability to add comfort and beauty to your home’s interior, while providing warmth on cool winter nights. 

Moreover, the Home Builders National Association claims that installing a fireplace in your home can increase the property’s value by up to 12%. It’s one of the top 3 desired in-home amenities that realtors and home buyers use to rank the property. So, in addition to increasing your home’s value, an electric fireplace can attract potential buyers looking to create memories in the cozy, inviting space. 

But, is adding an electric fireplace worth the investment? Will an electric fireplace add value to your home? 

Let’s find out! 

Do electric fireplaces add value to a home? 

Although it may seem costly to add an electric fireplace to your home, these amenities increase the home’s value and attract potential buyers. Homeowners usually recover 100% of their initial investment once they sell their home. 

According to a 2016 Angi Survey, about 70% of realtors (real estate agents) believed that a fireplace adds value to a home, while 77% of homebuyers were willing to spend more for a home with a fireplace. On the other hand, the lack of a fireplace in a new house is usually a deal breaker for most potential buyers, while more than 75% of homebuyers claim that they look for a fireplace in the new property. This is one of the factors that has led to the demand for electric fireplaces in recent years. Also, real estate agents claim more than 50% of homebuyers would enjoy a fireplace in multiple spaces like living rooms, guest bedrooms, and master bedrooms. 

To answer your question; Yes, adding an electric fireplace will increase your home’s resale value. At the same time, it will significantly enhance the ambiance of your living space, making it an excellent alternative where budget or building regulations may not allow for a gas or wood-burning fireplace. This is because an electric fireplace costs less to operate than its gas counterpart and requires a much smaller upfront cost. 

Other benefits of installing an electric fireplace in terms of increasing the home’s value are; 

• Enhances the home’s interior design 

Electric fireplaces create a beautiful focal point in any living space. And with a wide range of styles and various types of electric fireplaces available, you’ll easily find a unit that blends with your home’s interior. Moreover, adding a fireplace with a mantel will allow you to display family photos, artwork, and seasonal decor above it to make the space feel like home. 

• Creates a cozy ambiance 

The glimmering flames and cracking wood sound produced by an electric fireplace creates a calm and relaxing atmosphere. As a result, your home will feel inviting and cozy for guests, making it a great amenity for those who like to host seasonal parties or family gatherings. 

• Increases the resale value 

According to research, homes with fireplaces get an average of 550 views per listing, which is more than homes with multiple bathrooms and open concepts. So, if you’re planning to sell your home down the line, an electric fireplace is a good investment to increase its resale value and attract more potential buyers. 

• Provides heat 

In addition to enhancing your home’s decor, an electric fireplace delivers a significant amount of heat, allowing you to give up the central furnace during the winter. Plus, you don’t have to turn up the heat in the entire house as it allows you to only heat the room where you spend the most time. This will potentially lower your energy bills since electric fireplaces don’t use a lot of electricity to maintain a comfortable temperature in your house. 

How much value will an electric fireplace add to your home? 

As already mentioned, installing an electric fireplace will add some value to your home. However, the problem is the sum, as that value can easily negate itself. The average cost of installing the electric fireplace costs about $850 – $3,500. 

Unfortunately, very few buyers will be willing to pay for an amenity that is already there. While most real estate agents believe that installing an outdoor or indoor fireplace increases the value of the home by about $1000 – $5000, only 35% of homebuyers agree to this. Contrarily, about 25% believed that the fireplace isn’t worth more than an extra $1000, while 23% of the buyers were not willing to pay anything extra at all. 

On the bright side, ventless and electric fireplaces are much less costly to install than their wood-burning counterparts. Nonetheless, upgrades like remodeling a bathroom or finishing your basement could offer a greater return than adding an electric fireplace when trying to increase your home’s value. 

Interestingly, around 16% of homebuyers include a fireplace when listing essential amenities of a new household. So, even though an electric fireplace will not add much in terms of monetary value, it will attract buyers that would not have considered your house otherwise. 

Conclusion 

Putting the exact monetary value aside, electric fireplaces are a great way to increase your home’s resale value. According to a 2021 study, an average home with a fireplace listed 13 percent more than the national median sale price. Moreover, these homes usually sold for around the asking price, but that can also be attributed to the historic surge of demand in houses during the same period. Either way, homes with fireplaces had the most views per listing as well as the highest sale-to-list ratios than homes with other popular features.