As a home represents a family’s single largest investment, any improvements should definitely add to its value. While there are many projects that meet this standard, wood flooring is right at or near the top of that list.
Wood floors can add real value to your home, no matter if you plan to live in it forever or put it on the market next month. Whether we are working with new home builders or with customers renovating an existing home, the trend toward wood flooring is clear. Home owners are increasingly choosing wood floors for their natural beauty, quality, elegance, durability, and ease of care as well as for their health and environmental advantages. These factors represent an immediate and lasting improvement to the aesthetic value of any home.
Wood floors also have a traditional appeal that can significantly increase the market value of a home. The Appraisal Institute of Canada currently estimates that homeowners can recoup 50-75% of the cost of a new wood floor simply in increased appraisal value. And with respect to resale value, a 2006 survey of real estate agents by the National Wood Flooring Association found that over 80% of realtors agreed that homes with hardwood floors spent less days on the market. Over 90% agreed that homes with hardwood floors were easier to sell, and that they sold for higher prices.
While the range of increased resale price varies with local market conditions, a conservative estimate of a 3% increase in list price for wood flooring can translate to significantly enhanced market value. For example, an investment of $10,000 in wood flooring in a home initially valued at $400,000 could potentially increase its selling price to $412,000, more than recouping the homeowner’s investment. And at 5% increase in list price, the return on investment doubles.
Whether you just love the look, feel and ambience of a natural floor under your feet, or if you want to give your home a competitive edge in the resale market, wood flooring can offer a great return on investment and is a smart renovation choice.