Do Hardwood Floors Increase Home Value?
- Do Hardwood Floors Increase Home Value?
- How Much Value Do Hardwood Floors Add?
- Cost of Hardwood Flooring
- How to Afford Hardwood Floors
- Frequently Asked Questions
For some homeowners, hardwood floors are a dream come true. Finding hardwood floors under an ugly carpet can be like finding buried treasure. New hardwood floors also have a certain luxury appeal to them that can change the entire feel of a home. While they may look great, do hardwood floors add value and are they worth the cost? Find out.
Do Hardwood Floors Increase Home Value?
Yes, generally hardwood floors increase home value. Because hardwood floors are such a desirable flooring option, they tend to be in high demand. As a result, they can bump up the sales price of a home. Especially in a competitive market where there is a high demand for move-in ready homes and fewer listings on the market, hardwood flooring may help your house stand out and draw in higher offers. Of course, there are a lot of factors at play. Before you rip up all your carpet, you should have a better understanding of the potential ROI of hardwood flooring in your market, the cost of installation, and your other options.
How Much Value Do Hardwood Floors Add?
How much hardwood flooring increases home value is not exact and will be dependent on several different factors. The local market, the buyer, the state of the house itself, and where the hardwood flooring is in the home can all impact the value of hardwood flooring. According to estimates by the National Association of REALTORS®, buyers pay around $6,500 for new wood flooring and $5,000 for refinished hardwood flooring.1
Besides just looking at the value, you need to determine whether or not hardwood flooring will be worth it by looking at the expected return on investment (ROI). ROI is calculated from the project cost and the increase in sales price. The type of hardwood flooring, materials used, general contractor, and size and shape of the area can all impact the project costs and the return. There is also a notable difference between new hardwood flooring and refinished hardwood floors.
ROI for New Hardwood Floors
If you don’t already have hardwood flooring in your home, you may be thinking of installing it. On average, we found that the return on investment for hardwood flooring in Curbio projects was 276%.2 This high ROI on hardwood floors can result in a significant amount of money back in your pocket when you sell.
ROI for Refinished Hardwood Floors
If you already have hardwood floors, then you are in luck. Although hardwood floors increase home value, those that are scratched, dull, and worn down will not be a big selling point for buyers. Instead, homeowners should get these floors refinished.
Refinishing hardwood floors increases home value significantly. Based on past Curbio projects, we found that the average ROI on refinished hardwood flooring is 348%.2 Not only is this higher than the return for new wood flooring, but also it is one of the best ROIs for home improvements.
Hardwood vs. Other Flooring
Besides hardwood flooring, there are various other flooring options that have different pros and cons and may give you a better return depending on your situation.
Luxury vinyl plank flooring (LVP) is a type of flooring that has the appearance of hardwood floors but is cheaper and still durable. Because of its waterproof quality but modern look, it has grown in popularity in recent years. Like hardwood floors, it also has a high ROI of 235%.2
Carpet is a common type of flooring that has been around for ages. It is cheaper to install than hardwood flooring and has a similar ROI of 280%.2 Depending on your home and the room, you may want to consider replacing old carpet with new carpet before selling instead of installing new hardwood floors.
Cost of Hardwood Floors
While hardwood floors look sleek and modern, they can also come with a hefty price tag that can turn some homeowners away.
New Hardwood Floors
Installing new hardwood flooring tends to be more expensive than refinishing existing wood floors. On average, the cost of installing new hardwood floors is estimated to be around $5,500.1 This cost can vary significantly based on the size of the area.
Refinishing Hardwood Floors
The cost to refinish hardwood floors may be significantly cheaper than installing new wood floors from scratch. According to one source, the average cost to refinish hardwood floors is $3,400.1 Of course, larger areas or hardwood floors that are particularly worn down could end up costing more.
How to Afford Hardwood Floors
Because hardwood floors increase home value and have such a high ROI, both installing these new floors or refinishing them can be enticing, but not everyone has the cash to pay for these updates upfront.
Some homeowners will elect to DIY these projects to save money on labor costs, but this approach can be problematic. Not only will these homeowners spend a significant amount of their own time on these projects but also the quality of the work could suffer. In the pursuit to save money, the end result could not look as they hoped.
If you want hardwood flooring but cannot afford the price tag, luxury vinyl tile may be another alternative. This flooring costs much less but still has a high ROI. Homeowners who elect to use this type of flooring can save a lot of money on project costs while still getting the modern look they desire.
If that cost still seems out of reach, it doesn’t necessarily mean you are out of luck. You can still get the increase in home value from hardwood floors without the upfront price tag. At Curbio, we make pre-sale updates realistic for more homeowners by using a pay-at-closing price model. Our general contractors do the work, but payment is deferred until after the house sells. As a result, you can sell your house faster as well as for more. We will even help you determine which projects and updates will have the highest ROI.
Talk to your real estate agent about working us, or contact us and we may be able to find you an agent in your area.