For most homeowners, home improvement projects are not just about improving life in the short term. Instead, in addition to considering how a project will impact your use and enjoyment of your home, you also need to consider what type of ROI, or return on investment, the project will give you. Some home improvement projects like putting in a swimming pool or doing a major kitchen upgrade have notoriously low ROIs. Other projects, like installing new flooring, are known for having great ROIs.
Hardwood floors have long been considered the gold standard in luxury flooring. Timeless, classic, and long-lasting, hardwood floors allow you to charge premium home prices. They are generally more expensive to install, which prospective buyers realize, making it possible to increase the sales price of your home if you have these floors.
However, there are some things to consider when you are thinking about hardwoods. On average, people see a 75% ROI when they sell a home after installing hardwoods. While hardwoods are more expensive than other flooring options, this premium increase can be important. For example, if your home currently has worn and dirty looking carpets or worn laminate, that can decrease the sales price of your home compared to other houses in your neighborhood. However, replacing them only brings the value of your home up to comparable homes. Choosing hardwood instead might allow you to charge a premium price and actually lower your overall cost for the flooring project.
In addition, you need to understand what the market will support. Right now, the real estate market is booming, but the location of your property is still going to dictate what the market will support. Is your home located in an area where you can charge premium prices based on amenities? If not, then hardwoods might not be a good financial investment. Instead, you might want to consider a great alternative like luxury vinyl plank, which will give you the look and textured feel of hardwoods, but at a lower price point.
If your area can handle premium prices, you may want to consider other additions that can enhance your hardwoods. One of the only complaints we hear about hardwood flooring is that it can be cold in the winter. Installing a radiant heat system that heats your floors eliminates this problem and is another high ROI investment that will make your property even more attractive to future buyers!
