Question: My home does not have a fireplace and I would like to add one. I really love the smell, sound, and "life" of a wood fire and would prefer to install a wood burning fireplace (vs. gas). Is this a big project? How much should I expect to pay? Answer: Main thing is where the chimney will go. If your house is two story it most likely will have to go in a "chase" or framed box on the outside of the home. A prefab fireplace with this chase can be had for $4000. to $6000. installed...more if you a heating-type fireplace. If you have a singly story home and can build the fireplace and chimney inside the home, then you could spend $2500-4000. You can save some money if you are handy and want to do the painting, hearth, sheetrocking or other parts of the work.