Does Adding a Permanent Fireplace Increase Your Home’s Resale Value?

If you’re renovating or building in Victoria or Tasmania, weighing up what home improvements to add, you’ve probably thought about a permanent fireplace. The cold winter nights in the southern states make a fireplace very appealing, but does adding a fireplace actually increase your home’s resale value or is it just an aesthetic feature you’ll enjoy while you’re there?

For homes across Melbourne, where cold, damp winters are part and parcel of living here, a well-chosen fireplace can be more than just a comfort upgrade. The right fireplace, properly installed, has the potential to lift buyer appeal, set a property apart from comparable listings, and add genuine long-term value.

In this article, we’ll look at why fireplaces appeal to buyers, the difference between permanent and portable heating features, and how choosing the right type of fireplace can make a real difference when it’s time to sell.

Why Fireplaces Appeal to Buyers

There is something emotional about fireplaces, a romantic idea of being cosy in front of a warm fireplace, the creation of a happy core memory. Then, beyond the ambience, modern day gas and electric fireplaces add a practical heating element to a room, lifting the functionality of a living area, and hence the potential resale value of the home.

• Emotional Connection. Coming back to the emotional connection, a feature fireplace can really make a home stand out, the centre of attention where the family gravitates to be together to relax and socialise.
• Visual Anchor. A well designed fireplace, located in an optimal position, with a sleek, modern hearth, can make a room. It gives a living space a heart and can be the focal point for some wonderful interior decorating.
• Practicality. While open wood-burning fireplaces can be romantic, they can also be inefficient and time consuming to maintain. A modern gas or electric fire can still look regal in your living room while being efficient and helping you save money on your heating bills.
• Perceived Home Value. Listings with clean modern fireplaces often garner more interest from potential buyers, and can raise the property’s resale value. Buyers look for fireplaces that are low maintenance and fit the decor without taking over the space.

Permanent vs Portable: Why “Permanent” Matters for Value

A permanent fireplace adds structure to your home, an architectural focal point to gravitate to. A portable fireplace is temporary and considered personal property, something you’ll take with you once the house is sold. Permanent fixtures yield higher returns in a buyer’s emotional journey.

When it comes to the pricing of a home, there is the appraised value that a real estate agent assigns to the property and then there is the perceived value a potential buyer puts on the home.

An appraised value may take into account distance from public transport, what school catchments the house is in, and the listed features of a home. While a defined dollar value doesn’t exist for a fireplace, a home’s value can move upwards if there is a permanent fireplace inside.

The perceived value is something different. This is the benefit a person feels from the home. The home may be closer to friends, or sit close to where a place of work is. Or, a buyer may have grown up with a fireplace that looks just like that, and so their desire for the home increases, the value of that home goes up, in their mind, thanks to an emotional connection. If a person feels good in a home, they could pay more for it.

A portable fireplace does not do this. Portable fire pits or plug-in heaters are not part of the home, they are considered furniture, something that will be taken when the house is sold. Also, portable units don’t have the same safety measures that built-in fireplaces do.

What Melbourne buyers are looking for

Melbourne fireplace buyers who are renovating, or those looking for a home with a heater already installed, want heaters that are energy efficient to save on costs, low emission, and are a focal point for the room. High-efficiency slow combustion fires, gas log fires and stylish electric fires are all top of the shopping list at the moment.

• Sleek Electric Fireplaces: With the Victorian government phasing out gas connections for new builds, buyers are increasingly looking for zero-emission electric models. Jetmaster’s own VisionLINE range is a popular choice locally, offering realistic LED flames and heat without requiring a flue.
• High-Efficiency Wood Fires: Traditional open fireplaces are losing favour due to poor heat efficiency. Buyers now want slow-combustion wood heaters, prized for lower emissions, long burn times, and maximising warmth while using less firewood.
• Modern Gas Log Fires: Still valued in established homes for instant heat and aesthetic ambiance. However, buyers focus heavily on high star-efficiency ratings and balanced flue systems to reduce running costs.

Choosing the right fireplace type for resale value

If you want the best return on investment for your fireplace and increase the resale value of your home an inbuilt gas fireplace is the best choice. However, there are, of course, other fireplace options available, so let’s have a quick look at each for their pros and cons.

Gas Fireplaces

They are highly desirable in upscale real estate markets. With instant heat that is easily controlled, and with a clean-burning fuel, they are convenient and no-mess, which buyers love. They are best for when you’re renovating old homes, to keep the original charm while adding some modern sophistication.

You do need a gas line to your home, of course, and the installation costs can be a little bit higher. However, the ROI you get in terms of added value to your home, is significant.

Electric Fireplaces

Electric fireplaces are the most flexible types of fireplaces that you can install. They don’t need venting or gas lines and can pretty much plug into any power point on your wall. They are best for apartments, townhouses and homes with that minimalistic aesthetic interior.

Great low installation costs and you can usually install them without any major structural renovations. They can seem a little ‘cold’ and modern, lacking in stylistic warmth, when compared to gas heaters, but nonetheless they are a good choice for quick and clean warmth.

Wood Fireplaces

If you’re after the classic look of open fireplaces in Melbourne, a traditional wood-burning option still delivers that crackle and charm, that builds a feeling of nostalgia and coziness. If you have a large home, a traditional style of residence with bluestone walls, for example, a wood burning fireplace would add so much character. They’re also a great option if your home is in a rural or semi-rural setting, where supplies of wood are abundant.

The installation costs for a wood fireplace are high, with flues, hearth and regular cleaning required, and this can be a drawback for many buyers.

Key Factors for Resale:

• Market Demands: Fireplaces add the most value to premium or luxury properties where buyers expect them as a design statement. In entry-level purchases, they may not offer as strong of a return.
• Aesthetic Integration: A poorly maintained, outdated brick fireplace can actually decrease a home’s value. Ensure any new unit is styled to match the home’s architecture.

Getting it installed properly matters

Wanting a fireplace for yourselves, and for resale value, is a great idea, but if you try to install it yourself, you could run into troubles, which may add costly repairs further down the line.

Visiting a fireplace store in Melbourne before you buy means you can compare options in person and get advice tailored to your home.

Proper installation of a Jetmaster fireplace is vital for safety, optimal heat exposure and for warranty compliance. For brick chimneys or gas heaters, correct flues and clearances must be met to avoid fire hazards.

Why Installation Matters

• Safety First: Ensuring adequate distances from combustible materials prevents dangerous temperature build-ups in walls and ceilings.
• Flue Performance: A properly designed and installed flue means efficient draw, preventing smoke from spilling into your home.
• Warranty Protection: Manufacturers require adherence to local building codes and strict insulation guidelines; DIY or incorrect installations void warranties.

Key Technical Requirements

• Floor Protection: Non-combustible hearths or floor protectors are required under and in front of open fireboxes.
• Clearance to Combustibles: When using twin-skin flues, a minimum of 50mm clearance to combustibles must be maintained.
• Ventilation: Active flues must be properly sealed and ventilated at both the top and bottom of the casing to retain heat without overheating.

Is a Fireplace Worth It for Resale Value?

For homeowners shopping for fireplaces in Melbourne and Tasmania, a permanent fireplace is more than just a cosy winter feature to gather in front of with a mug of hot chocolate. It can genuinely lift a home’s appeal for future buyers. The key is in choosing the right style of fireplace for your home and having it professionally installed.

A high-efficiency gas fireplace tends to offer the strongest return for most homes, balancing instant heat, low maintenance, and broad buyer appeal. Electric models suit apartments and modern interiors where flexibility and low installation costs matter most, while wood-burning fireplaces still hold a special place in romantics’ hearts.

Be warned, though, that a poorly installed fireplace, or one that clashes with your home’s aesthetic will do more harm than good when it comes to the resale value of your property.

If you’re ready to add a fireplace that adds genuine value to your home, get in touch with the Jetmaster Heat & Glo team for expert advice and professional installation.