Renovating and remodeling your home can boost its functionality and appeal as well as increase your home’s value along the way. Whether you’re thinking of selling your home soon or just want to make some improvements, upgrading your flooring may be on top of your list. If that’s the case, then there’s a strong possibility that you’re considering the hardwood options.
Not only do they look elegant, classy, and clean, but they’re also one of the top flooring options that can add good value to your home. But just how much do these elegant floors can increase your property value?
Hardwood Flooring: Does It Increase Home Value?
Although there are limited data on the correlation between hardwood flooring and home value, many show that it can increase home value by up to 2.5%. Meanwhile, some say that hardwood floors can increase home value between 3-5%.
Hardwood floors are in high demand and are generally appealing to most buyers. This means that your home will likely sell faster than the average. However, there are certain areas where hardwood flooring becomes the norm.
What’s The ROI?
It should be clear that adding or upgrading to hardwood flooring can increase interest in your home and boost its value. However, how much will you have to spend before you can benefit from this increase? And just how much return of investment (ROI) can you expect for upgrading to hardwood floors?
Let’s start with the estimated cost to install hardwood floors.
The cost of hardwood flooring depends on the type of wood you choose, where you get it from, how much you need, and the installation. Hardwood flooring material can cost anywhere between US$3-7 per square foot plus another USD$4-5 per square foot in labor to install. This means you can expect to pay at least USD$6-12 per square foot. That’s about USD$2,400-6,700 to install hardwood flooring.
With that said, you can save some money by going with the engineered hardwood instead of using real hardwood. This type of flooring usually starts at USD$3 per square foot and tends to be cheaper to install, especially if you go the DIY route. Engineered hardwood offers a similar look to real hardwood, making it similarly appealing without spending too much.
So, now that you know the average cost of hardwood flooring installation, you can estimate how much ROI to expect.
According to reports, you can expect between 70-80% ROI for hardwood floors. This means that if you spend USD$10,000 on hardwood flooring (1,000 square feet at USD$10 per square foot), you can expect about USD$7,000-8,000 reflected in the sale price of your home. And if you don’t plan on selling right away, then the ROI could be even bigger.
Hardwood Flooring: 4 Factors That Affect Home Value
As you can see, upgrading to hardwood floors can increase home value and has good ROI. However, these numbers still depend on other aspects.
1. Hardwood Floor Material
The hardwood material you choose has a significant impact on the expected increase in home value. The average cost of hardwood flooring per square foot and potential added value can fluctuate a bit, depending on the type of wood you choose.
For instance, using pine can only cost you about USD$4 per square foot, whereas higher quality materials like red or white oak, hickory, and Brazilian walnut can cost you up to USD$20. Premium and rare materials also make it more desirable for potential buyers, which helps in increasing its value.
Hardwood flooring can only contribute to the value of your home if they’re well-maintained. So, suppose you already have hardwood flooring installed last year, but having kids or pets caused numerous stains and scratches on its surface. In this case, don’t expect it to boost your asking price. This can do more harm than good as buyers will have to factor in the cost of replacing them.
Fortunately, refinishing your hardwood flooring can produce a similar amount of satisfaction in potential buyers as installing them for the first time.
The direction and pattern in which wood planks are placed can also add or detract buyers’ appeal. If you have short planks placed in a cross or herringbone pattern, then it can make your flooring look dated. Similarly, having all planks going in a single direction can make the room feel tighter and reduce appeal.
In this case, talk to an expert local real estate agent and flooring professional to help you design the perfect flooring wood pattern and direction that can boost value.
4. Match With The Space
The ROI for your hardwood flooring can be greatly improved if it matches the space and creates a balanced appeal. So, before installing hardwood flooring, make sure to consider updating the room first. Regardless of how expensive your hardwood flooring is, it won’t cover up a dated area like the kitchen.
You can get the biggest bang for your buck if your newly-installed hardwood floors on your kitchen are paired with new cabinets, fresh paint, or modern kitchen appliances. This makes it even more appealing to buyers while maximizing ROI.
Is It Truly Worth It?
There’s no denying that hardwood floors can add value to any home, especially since it offers good ROI if you’re planning to sell your home soon. However, there are plenty of other projects you should consider first that can add more value to your home.
For instance, in terms of both appeal and added resale value, the top two projects you should consider are kitchen upgrade and bathroom renovation. In terms of projects that’ll increase value, adding a master suite or a new bathroom increase value more than having a new wood flooring.
So, if you’re hoping to sell your home soon, it’s worth considering where you can better invest your money before putting it on new hardwood flooring. But if you’re not in a hurry to sell your home and just want to improve your home’s aesthetic appeal, then hardwood flooring is a good investment to consider. Consider the ideas mentioned here as you plan and prepare.