Fireplaces, Heating Stoves, Flues and Chimneys - older woodburning fireplace restoration

I have recently purchased an older home (1920's) with a medium-sized woodburning fireplace that has not been used in years. The cap is rusted, it has no liner and no damper, and there is some minor brick breakdown in the firebox. I had hoped to bring it back to a safe woodburning state.

I called several chimney sweeps, all of whom said not to bother and tried to sell me whatever gas insert they happened to carry. I finally got a sweep to come out and clean and inspect it. He pointed out the above issues, then said that it would cost $7000 to rebuild the firebox and line the flue, but that he would rather sell me the Ahrens insert/liner system (he is a dealer) for the low price of $5000.

The home is one story. The chimney is straight and in good condition. The brick damage in the box is not severe. I can repoint brick, and I have read about stainless and spray on liners. I seems that it should not have to cost thousands to restore. Am I right in thinking that people are trying to sell me things and services I don't really need? Are there lower cost solutions, even if this is not a DIY project?
thanks for any help.

I am no expert (as you can see by my other posts) but I have been doing a ton of research on fireplace inserts.

First off with the age of you home and fireplace you would be better off getting an insert. An open fireplace like yours (and mine) you are only getting 10-15% of the efficiency out of the fireplace. In other words you would only get 10 -15% of the potential heat out of the fire. With an insert you can get 65-75% efficiency out of your fire.

Second, there is a HUGE price range for inserts. Here is one well rated from Northern tool for about $1000: Drolet Fireplace Wood Insert, Model# DB03120 | Wood | Northern Tool + Equipment (http://www.northerntool.com/webapp/wcs/stores/servlet/product_6970_200325829_200325829) I have also seen one at Menards for about $800. You have to add the cost of a stainless steel liner kit which can be had for about $350 - $450 (Menards). These are not "pretty" ones. They are work horses that just keep you warm.

I would think if your chimney is solid and insert would be a very good investment. If your fairly handy I would think you could install one yourself. Just do some research, talk to dealers and search on line.

I just got an INSTALLLED price of $2800 on a GAS direct vent intsert (80%+ efficiency). This included running gas by a licensed pipefitter through finished walls and ceiling, installation of the insert and everything in the chimney (the existing fireplace is a tin built-in with a tin chimney). The new insert has a glass door with glass and solid brass trim, themostat, fans and remote control. - This is an example of what a first class insert can cost installed and a different insert could be much cheaper, especially if it a DIY project.

You may have a situation with your existing home and chimney that could have to liabilities that a contractor is not willing to incur liability for without them being corrected. - These could the leakage, water damage, mold and rebuilding of the crown and a good cap. Physical liabilities could be loose falling bricks.

I have a friend who had two chimneys lined with stainless steel at $3,000 each.