Do Hardwood Floors Increase Home Value?

Visions of real hardwood floors are definitely in the minds of today's homebuyers. Inspired by a mix of Instagram-fueled dreams and the sheer convenience of real wood floors, buyers often consider this a major make-or-break feature in their home searches. There's just no way around it.

However, homeowners looking to sell often wonder if the return on investment (ROI) is really all it's cracked up to be. Are buyers really willing to pay more for hardwood floors? According to the nation's top real estate agents, adding hardwood flooring is the single greatest home improvement for boosting home value. Knowing how potential buyers view wood flooring compared to other options makes deciding on this project easier.

Do Hardwood Floors Increase Home Value?

Most estimates show that hardwood flooring can increase a home's value by anywhere from 2.5% to 10%. For a home at the average listing price of $415,200 that's an extra $12,000 to $40,000 in the seller's pocket.

Buyer demand for hardwood vs. carpet or other flooring

Hardwood reigns when it comes to buyer demand. While options like luxury vinyl plank (LVP) can be viewed as substitutes for hardwood floors, this is a step down in terms of value. LVP is seen as a cheaper option that has potential for denting, fading, or causing gaps in floors. It also can't be refinished the way hardwood can. That means that future homeowners are "stuck" with LVP unless they want to pay for a full flooring replacement.

Carpet is also considered a step down from real wood floors. Unlike hardwood that can last a lifetime with proper care and occasional refinishing, popular nylon and polyester carpets are only meant to last five to 15 years. In addition, carpets are notorious for soaking up dirt, debris, allergens, and stains. Carpet can be a nightmare to care for in a home with kids or pets. It also simply lacks the luxury factor of hardwood.

How hardwood impacts home appraisal and perceived value

According to appraisal experts, flooring accounts for 5% to 10% of total home value. Yes, it influences your appraisal outcome. Professional appraisers actually determine flooring value in relation to a home's value based on durability ratings, aesthetic appeal scores, and market preferences. While hardwood gets between 8/10 and 10/10 during appraisals, options like luxury vinyl plank and laminate get 6/10 to 8/10.

If you listen to the mouths of appraisers, newer is better. Having flooring that's older than 15 years can reduce home value by 2% to 5%. Consistent flooring that's the same throughout a home adds 1% to 3% compared to mismatched flooring.

Faster sales and stronger offers with hardwood floors

Desirability translates to faster home sales. In fact, having hardwood floors throughout a home is one of the best ways to make a home stand out in the market. Just half of homes in the United States have some wood flooring. Meanwhile 75% of homes have carpet. The rarity of all-wood homes makes buyers eager to jump when they have the option to purchase one.

ROI: The Return on Investment of Hardwood Floors

Hardwood flooring is something buyers scan listings for while pursuing their dream homes. A recent National Association of REALTORS® (NAR) Remodeling Impact Report reveals that hardwood flooring has the greatest positive impact on home resale value. The estimated ROI for hardwood floors is 118%. For comparison, The NAR finds that a complete kitchen renovation has an ROI of 60%.

It's not always necessary to start from scratch with wood floors to get a solid ROI. NAR research finds that refinishing existing hardwood floors has an ROI of 147%. Whether a homeowner intends to stay in a home forever or place it on the market, adding or restoring hardwood flooring boosts long-term value while lowering maintenance costs over time.

Types of Hardwood Flooring and Their Impact on Value

Anyone who has watched DIY shows or dipped a toe in home improvement knows that there are many different types of wood floors to choose from today. While all wood floors are beautiful, not every wood choice offers the same value boost for homes.

Solid Hardwood: Premium appeal, durability, refinishing potential

Solid hardwood is the most desired option. Buyers appreciate the elegance and timeless appeal of this choice. In fact, it's one of the most easily identifiable features of a "luxury" proper versus a flip property. The big benefit here is that solid hardwood floors can last several lifetimes because they can be sanded and refinished up to three times.

Engineered Hardwood: Stability, affordability, real wood veneer

While attractive and durable, engineered hardwood doesn't have the "wow" factor of solid hardwood. However, it's still a very solid choice with a reliable ROI. It's a good choice when seeking to boost home value and sell a home faster without digging too deep into your pockets.

Bamboo Flooring: Sustainable option, modern look

Bamboo flooring is generally less expensive than real hardwood and engineered hardwood.

The reason why is that bamboo is a fast-growing "grass" that regenerates in just a few years compared to slow-growing hardwood trees. On the sustainability end, bamboo is a renewable resource that's considered much more eco-friendly.

Reclaimed Wood: Unique character, eco-friendly resale appeal

Reclaimed wood flooring is a character-adding feature that can boost resale appeal for some homes. People love it for its unique character and custom look. With reclaimed wood planks being recycled from old wood, this is also a great eco-friendly option.

Hardwood vs. Other Flooring Options

Hardwood isn't the only flooring option that can add value to a home. In homes with old or damaged carpets or vinyl floors, replacing floors with a newer version of the same material can make a home appear to be in much better condition. If the choice is between keeping stained carpets or upgrading to new carpet when real wood floors are out of your budget, replacement carpet is certainly better than nothing.

When it comes to hardwood versus carpet for resale implications, hardwood is always the better choice if the goal is to get the best and fastest offer. Carpet can come across as a "budget" option that will need to be replaced in a matter of years.

When it comes to hardwood versus LVP and laminate, "synthetic" flooring options can certainly modernize a home. However, buyers who are interested in high-quality materials could be turned off.

Hardwood alternatives have their pros and cons. Options like LVP and carpet often cost 30% to 50% less compared to real wood floors. In colder climates, some people might actually prefer the warmth of carpet in bedrooms or dens. Ultimately, hardwood alternatives can offer affordable ways to modernize a home without a huge budget.

The big con of any hardwood alternative is longevity. Carpet will last just three to 10 years. While laminate and luxury vinyl flooring can last 15 to 20 years, heavy foot traffic can reduce lifespan. There's also no way to refinish these floors when they become damaged.

Cost of Installing or Refinishing Hardwood Floors

On average, getting hardwood floors installed at your home can cost $5 to $25 per square foot with materials and labor included. Expect lower-tier wood options like engineered wood or red oak to cost $5 to $13 per square foot. Meanwhile, high-end woods can cost $14 to $25.

Refinishing hardwood floors costs $6 per square foot on average. Costs vary based on things like wood type, the condition of your floors, and the finish you choose. While oak refinishing can be $4 to $6 per square foot, it's closer to $7 to $9 for options like mahogany.

There are ways to make hardwood floors more affordable. For example, you can go with a budget-friendly option like oak or maple. Engineered wood that comes with a stained finish can also be significantly less expensive than pure hardwood. You can even select click-and-lock styles that make for easy DIY hardwood floor installation to save money.

How to Protect and Maintain Your Hardwood Investment

Hardwood floors can last a lifetime if you care for them. Here are some classic tips:

• Be diligent about sweeping and dusting wood floors daily to remove grit that will be pushed into your floors to scratch its finish. Use a soft cloth or microfiber dust mop.
  
• Use rugs at busy areas to prevent visible wear patterns on wood floors.
  
• Add felt pads to furniture legs to prevent scuffing.
  
• Keep your home's humidity below 55% to prevent shrinking and swelling of your wood floors that can destabilize your flooring.
  
• Never allow moisture from spills or leaks to settle on wood floors.
  
• Avoid using steam cleaners, oil soaps, vinegar, or astringent cleaners that can strip polyurethane finish from floors.
  
• Reapply a finish or sealant to your floor once every five years.
  
• Refinish wood floors every 10 to 15 years to keep them looking new.

Frequently Asked Questions

Is new hardwood worth the cost?

Yes, the ROI of hardwood flooring is estimated to between 70%-120%.

Will engineered hardwood increase home value?

Yes, engineered hardwood increases home value by providing elegance and uniformity. However, engineered hardwood is generally considered less valuable compared to real hardwood because it cannot be refinished multiple times.

Should I replace carpet with hardwood before selling?

Replacing carpet with hardwood is a great way to make a home more appealing to a wider pool of buyers. However, you need to assess the ROI to see if it's worth it based on your home's current value.

What’s better: refinishing old wood or installing new?

If your floors have been refinished no more than two times before, refinishing old wood floors offers a better ROI than installing new floors.

Key Takeaway on Wood Floors

Do hardwood floors increase home value? Hardwood flooring is considered the best home improvement for return on investment among Realtors. That should say it all. Homebuyers are excited by wood flooring's beauty, longevity, and easy care. There's an elegance factor that makes wood flooring more appealing than carpet and vinyl. However, the bottom line is that new, clean flooring of any kind is better than keeping old, stained rugs or faded and broken vinyl. If hardwood is in your budget, the ROI makes it the right choice for giving your home the wow factor for resale.

Homeowners wondering if wood floor installation or refinishing is right for their home can speak with a property expert at Revive for free. Book your call here today.