I'd get someone who just does fireplaces to come take a look at it. If just the top is an issue, they can probably correct that without totally rebuilding the chimney. We were having our chimney checked and a cap replaced (blew off in a hurricane). The guy came down and told us there was some masonry damage and exposed wood that shouldn't be there. It has been years now, so I don't remember exactly what he did, but he rebuilt the top and installed a new upgraded cap. I don't think we were out more than $1000 or just a bit over. Maybe what I am picturing is not your problem, but I'd get a second (maybe third) opinion on the chimney and your options.

I would want the fireplace vented, so I would want the chimney.

Every unvented fireplace I have seen work burned with an unpleasant smell.

For appraisal purposes, FPs add about $3000 here in NC. But that does not always translate into resale value.

I doubt the absence or presence of a chimney is going to make much of a difference to buyers and it should have virtually zero impact on value. My guess is that any increase in value (again minimal) would be offset by the increased cost of having a brick chimney. The absence or presence of the fireplace is what will add appraisal value.

To me, a house without a chimney would look weird. I can't see it being an issue for you.

I'm assuming that they would only be removing the exterior part of the chimney, not what is inside the house. I wouldn't like it and I would not want unvented gas logs in my fireplace.

As long as you put in a vented gas fireplace, I don't see a problem. Whatever tiny do, don't do an unvented gas fireplace.

I'm surprised that unvented gas fireplaces are legal anywhere. Maybe in warm climates where the risk of death is alleviated by opened windows? https://greenhomesamerica.wordpress.com/2011/12/20/a-bad-idea-unvented-gas-fire-place/

I like the option of using a fireplace and I like the look of chimneys. I've never heard of a wood chimney.

Salti, you don't think that people have fires for reasons other than warmth? Not sure what you're getting at. In warm climates where they use the fireplace with the windows open? ????

I was talking about unvented fireplaces, I thought that was apparent. In warm climates, people might use unvented fireplaces with the windows open to reduce the risk of death from CO exposure. In Canada, unvented fireplaces are illegal, so I was trying to figure out where they would be legal. Hope that is clearer for you.

As an appraiser, the value loss of the chimney will range from 5,000 to 2,500. If you live anywhere else but Florida, most markets will punish you if you don't have a fireplace. But, it may cost more to remedy the situation than the value involved. When you go to sell, the competition will have fireplaces of varying types and descriptions. The farther north you go, the more important it will become to have one in the home. While they are a relic of the past and not very energy efficient, many people wouldn't live in a home that doesn't have a secondary heating source.

I agree with some of the other posters. First, explore having the chimney repaired. There are couple of components may have failed. You need an experienced mason who is a fireplace builder to evaluate the situation. While most of us can make an educated guess, it requires an expert opinion. It would be a shame to make a decision without all of the facts in hand.

So have the top rebuilt by a qualified chimney guy. I had this done at two different houses last year. It cost a couple grand and is good for decades. If the flue itself needs work that will be a few thousand but you want a wood-burning fireplace. They have something called heat shield today, where they can coat the inside of the chimney if it isn't too damaged. This is cheaper.

Thanks for everybody's reply. Our chimney is not in a good shape. There is a gap between the chimney and the house (not sure what caused the gap). Our builder said from the top to the bottom, there is a 3 inches offset and the chimney is not a straight line (crooked at the top). He also said there was no concrete footing or foundation underneath the chimney. We are not sure in this situation, if it is worth repairing it.

The gas fireplace option is removing the whole chimney and the old fireplace, installing a new gas fireplace, build a bump out for venting the gas fireplace. So I think it should be considered as a vented gas fireplace. @Anglophilia, they do plan to remove everything, inside and outside. He said the fireplace and the chimney is a whole piece, it has to be removed together.

Gas fireplaces come in two varieties: vented and ventless.

The combustion of natural gas or propane creates toxic fumes. A vented fireplace exhausts those fumes to the outside, while a ventless supposedly burns efficiently enough to keep the fumes at non-toxic levels. I say supposedly because there is significant evidence that they don't. One reason for this is that they need to be re-calibrated to an efficient burn or they lose that efficiency, not many people really pay $100-$200 a year to have their fireplace re-calibrated to safe levels. It could also be noted that one appliance putting out significant but safe levels of carbon monoxide is not really a good thing.

I personally, would not ever consider installing a ventless fireplace, and I would think an inspector may point this out. We recently bought a house with a ventless gas fireplace and our inspector pointed it out to us, and noted the controversy but didn't really take a side. It wasn't connected to propane and I will never run it but it is there. So make sure what you are getting is being vented to the exterior of the home.

Edit: There are several faux brick chimney surrounds that can be installed at the roof which will give the look of a chimney outside without the weight and foundation of a chimney inside.

Our wood burning chimney flu is stainless steel ducting. The exterior is wood frame with faux stone veneer to match the rest of the home.