Calculating the Return on your Flooring Project
Installing new flooring in your home consistently ranks as one of the top renovation projects undertaken by homeowners. According to the National Association of Realtors, upgrading or installing new wood flooring is a home renovation project that also brings some of the highest return on investment (ROI) among remodeling projects. So what is your possible flooring renovation ROI?
Before undertaking a flooring renovation project, it’s important to know how much cost you might be able to recoup during resale. Modernize created this guide to help you better understand flooring renovation costs. Then, you can choose the type of flooring that could potentially help you recapture some of your investment if you ever decide to sell your home.
Types of Flooring Replacement
Your potential flooring renovation ROI will largely depend on the amount of your initial investment. Here’s a rundown on the most common types of flooring.
- Hardwood. Hardwood flooring exudes a natural beauty and upscale elegance. It comes in a wide variety of materials and styles. It’s durable and blends well with almost every style of interior design. Materials can be expensive, though, and hardwood isn’t the easiest type of flooring to keep clean on a daily basis.
- Tile. Tile flooring is an extremely durable and wear-resistant flooring material, which makes it a great fit for high-traffic areas such as bathrooms, kitchens, entryways and hallways. It also comes in a vast array of styles, sizes, and designs. It’s near the top of the flooring cost spectrum, however.
- Carpet. Luxurious carpet is best installed in bedrooms and living rooms. It provides comfort, beauty, and helps reduce noise. Carpet can show wear over the long run, however, and it naturally gathers dust, dander, and other harmful allergens – although that issue can be alleviated with regular vacuuming.
- Natural stone. Few flooring materials match the elegance of natural stone flooring. Marble, granite, limestone, and travertine flooring are among the most expensive flooring materials on the market, though. These materials provide excellent insulation, but they are permeable and need to be sealed on a regular basis.
- Engineered vinyl planks. Vinyl plank flooring can be made to mirror expensive hardwood, natural stone, or tile. High-quality vinyl planks are very durable and could be a good fit for high-traffic areas for more cost-conscious flooring renovation projects.
- Linoleum. This inexpensive flooring material has been used for decades. It’s easy to install and maintain, though it can show wear and damage if heavy objects are dropped on it.
Considerations for Your Flooring Renovation ROI
There are a few more things homeowners should think about before selecting a material for their flooring renovation project.
Your Home’s Style and Potential Value
You want to choose a flooring material that’s the best fit for your residence – tile and natural stone aren’t typically found in mobile homes, for instance. Choose the type of flooring that’s the best fit for your home so you can potentially recapture the most return on investment.
Homebuyers can be picky. Installing carpet in high-traffic areas likely won’t create as much buyer demand as hardwood flooring or tile. An experienced real estate agent can help you determine which types of flooring create the most buzz amongst potential buyers.
Your flooring renovation budget will largely determine what type of flooring you install. If your goal is to sell your home soon, you may want to look at ways to finance higher-end flooring if you think it will lead to greater flooring renovation ROI.
Potential Return on Investment
The amount you may be able to recapture on your flooring renovation ROI depends on several factors, including total amount of flooring to be installed, type and quality of flooring materials, and overall project cost.
Here are three of the top flooring renovation ROI projects:
Hardwood flooring. Hardwood is the top choice for flooring renovation ROI. Refinishing hardwood flooring costs an average of $3,500, but homeowners can expect 147 percent return on their investment, the National Association of Realtors reports. Installing new hardwood flooring, meanwhile, costs an average of $5,500 but returns 118 percent of the original investment.
Tile flooring. Tile tends to improve any space in which it’s installed – so long as color, texture and style enhance the visual appeal of your home’s furnishings. It also brings excellent ROI because of its durability, low maintenance, and timeless appeal. Expect to pay between $7 to $14 per square foot for new tile, but you can expect to recapture most, if not all, of those costs at resale.
Carpet. Good quality carpet and padding can be a strong selling point for prospective homebuyers, especially those with young children. New carpet averages between $2.50 and $3 a square foot, making it an affordable choice to upgrade your home’s flooring. Although it won’t command a premium ROI like hardwood flooring, homeowners can expect as much as 85 percent return on investment when installing new carpet.
Maximizing Flooring Renovation ROI
Unlike major home renovation projects such as remodeling a kitchen or adding a new bathroom, homeowners likely won’t have to take out a home equity line of credit or cash-out refinance to install new flooring in select areas of their homes.
Here are a few strategies to maximize your flooring renovation ROI:
Upgrade wisely. A house-wide flooring renovation project could cost tens of thousands of dollars. Installing new flooring in the entryway and other areas prospective buyers will see first could save on costs while boosting the overall appeal of your home.
Choose laminates or engineered planks over natural wood. Real wood flooring is expensive to purchase and install. Quality laminate or engineered flooring that mimics the look of real hardwood could accomplish the same end-goal while shaving several thousand off the cost of materials and installation.
Opt for neutral colors. Wild or dark color schemes may be a deal-breaker for certain homebuyers. Neutral colors such as brown and tan typically work well with any style of decor and personal furnishings.
Now that you’ve learned ways to maximize your flooring renovation ROI, it’s time to speak with a licensed flooring contractor to solidify your action plan.