Homeowners undoubtedly face an endless stream of projects as a home’s comfort, security, and style are of top priority.  Sometimes, it can be tempting to tackle home improvements without taking proper time to consider all of the factors involved.  But, waitbefore sinking money, time and effort into an update, it is highly recommended to investigate whether investing in a particular renovation will truly be worthwhile.  For many homeowners, the worth of a project is determined by ROI (return of investment).  Many experts agree that installing updated flooring can offer a substantial ROI while simultaneously improving a home’s aesthetic, style and comfort making the renovation a win-win!  

According to ibuyer.com, “Flooring can be a major make-or-break item when it comes to selling your home. Buyers love to see brand-new flooring that is easy to maintain.” Therefore, “most homeowners find about a seventy percent ROI on new floors when they go to sell their house.”  Whether installing new flooring in a forever home or planning to relocate, it is clear that new flooring adds both personal and economic value.

Now that the benefit of new flooring has been established, the question is which type of flooring offers the best value, and what else is involved? Ibuyer.com states that “eighty percent ROI” can be realized by following a few recommendations.  For that reason, a quick study of flooring types and recommendations should provide useful guidance in maximizing ROI when preparing for a new flooring update.

Flooring Types that Increase ROI

Hardwood Floors

Realtor.com ROI:  70%-80% on average

Depending on location, hardwoods continue to reign supreme as the most popular flooring material capable of increasing a home’s value. As genuine wood flooring offers many options, catering to a wide range of preferences, it is a logical choice that looks amazing in most homes. In addition, most home buyers are naturally attracted to wood flooring due to its durability and beauty. Although wood flooring is a more costly option, the increased home value will likely compensate for the cost. According to Realtor.com, “the average ROI for installing hardwood floors is about 70% to 80%, and wood floors can boost the sales price of your home as much as 2.5%.”

 

Tile

Realtor.com ROI:  50%-70% on average

Tile can, indeed, increase ROI but there is a little more involved with the consideration. The material and appearance of the selected tile are essential factors in increasing home value.  In addition, the specific rooms in which tile has been installed could be equally important to home buyers.  Bathrooms are usually considered a great space for tile installation, appreciated by many home buyers, due to the material’s durability and water-resistance.  In fact, when the right tile is selected, it can give the bathroom a fantastic facelift while preventing costly moisture damage at the same time.

Climate is another important component when considering tile flooring.  As tile is cold underfoot it might be considered a downfall in colder regions whereas a preferred material in warmer climates due to its ability to stay cool as temperatures rise.  As climate can provide guidance in choosing the most valuable flooring material, it is important to gain knowledge of the best flooring types by region to maximize ROI.

 

Carpeting

Realtor.com ROI:  25%-40% 

Most buyers will appreciate seeing brand new, clean carpeting especially when installed in bedrooms. In many cases, carpeting could be a smart investment since it is relatively inexpensive to install offering a budget-friendly way of updating home spaces. However, in order to maximize ROI, carpeting is discouraged from being installed in high-traffic living spaces in today’s real estate market. On the other hand, buyers might truly appreciate new carpeting in bedrooms and lower-traffic areas.

 

Luxury Vinyl Plank

Luxury Vinyl Plank is considered a preferred material to laminate flooring, recently gaining in popularity quickly. This synthetic material imitates the appearance of wood flooring, very convincingly, without the higher price tag. As luxury vinyl plank flooring is durable and water-resistant, it can be a fantastic option for high-traffic areas as well as bathrooms and kitchens.  Although true that luxury vinyl is good at imitating hardwood flooring, it’s feeling is not identical to that of its wood flooring counterpart. Additionally, it is important to note that when increasing ROI is a top consideration, homeowners should not select flooring that is anything less than a luxury vinyl plank. The less expensive vinyl can bend and twist and is less attractive overall.

 

Laminate Flooring

Yes, there are instances when laminate flooring can increase a home’s value! Laminate is easy to install and can provide the look of wood while on a budget. This flooring type offers durability and beauty in bathrooms as well as humid locations where wood flooring could be at risk of rotting. Although laminate will likely not provide as high of ROI as hardwood, or other types of preferred flooring, homes with dated or worn flooring will usually sell at a higher price point with new laminate installation.

 

 

Additional Considerations

Consistency is key in increasing home value! Flooring should be the same throughout the main living spaces to provide a quality of openness and create a nice flow that most home buyers find attractive.  It is important to keep in mind that unmatched flooring should be avoided, if possible, as it can turn buyers away if it feels disorganized. The exception to the rule is bedroom and bathroom flooring which can get away with not being identical.  Yet, even if not matching, there should still be a level of cohesiveness between rooms to provide greater ROI potential.

Space matters when it comes to flooring renovations and increasing ROI. Naturally, various areas of the home are going to need more durable flooring than others. Entryways and high traffic areas need resilient, easy-to-maintain flooring where water resistance might not be crucial. However, bathrooms and kitchens will benefit greatly from flooring that is both water-resistant and resilient in order to avoid damage and increase flooring longevity.

Location is an important consideration, as discussed previously, since geographic climates have varying effects on flooring types. Typically, hardwood is popular in colder regions as it is warmer than tile underfoot. However, in hot and humid locations, wood is a riskier choice as it has the potential to disintegrate at a faster rate, making tile a more popular choice in warmer regions of the globe.

Market Preferences are a necessary consideration as current trends and updates can be very alluring to potential home buyers. A home that is considered more “turn-key” with the use of neutral, updated colors and materials offers an attractive investment as it will save buyers from needing to make updates themselves and allow enjoyment of their new home immediately.

 

For more information regarding increasing home value with flooring, see the article, “The Best Flooring for Resale Value: Wood, Tile, Carpet, and Beyond” published by Realtor.com.