Hi,
We bought a house recently. It has a fireplace in the living room. There is no fireplace in the family room. We are extending the family room from 15 X 12 to 21 X 12. We are thinking about adding a fireplace in the family room. Will it increase the value of the home? We are not so particular about having a fireplace in the family room unless it adds value (more than what we would spend) to the home. We would appreciate your suggestions and help in this regard.

Thanks,
Raj

There are many who do not consider a fireplace an asset at all. It will add value for a buyer who wants a fireplace in the family room, and it won't for others. My own personal belief, unfounded in actual fact though it is, that the $10,000 to $20,000 you might spend for a fireplace will never add that much value. Your best bet for a better answer would be to ask several real estate brokers.

I asked a real estate buddy of mine this question before and he said that no, you will never see the return but it will add sellability to your home, just like Richard said.

Actually, we are thinking of adding a direct vent fireplace and are hoping that it would cost less (around $2500). We do not want to spend more than that. Also, it looks like we need to check the city code on adding a direct vent fireplace.

Don't shoot the messenger but $2500 isn't going to get you much. A decent fireplace alone is probably that much if you order it with a fan, then there's installation and finishing. Depending how elaborate you want to go on the finishing, I would budget closer to $3500 - $4000.