What Factors Affect Home Resale Value?
Some things are simply out of your hands when it comes to your home’s value. For example – you can’t pick your home up and plop it into a good school district.
Things you can’t alter in your favor include:
- Neighborhood comparable homes
- Home size (unless you’re planning a major construction project)
- Age of Home
The good news is, there are some things you can change about your home to boost its resale value.
Things you can alter to improve your home’s value:
- Upgraded appliances, especially the stove and refrigerator
- Improved home condition, especially maintenance to the exterior
- Remodeled rooms, especially the kitchen
- New energy-efficient features, especially windows
- Additions to the home, especially extra bedrooms or a pool
- Installation of smart technology, especially thermostats and security features
The effect upgrades have on your home will vary greatly in different markets and price brackets. For example, higher-value homes will see a greater spike in price with the addition of a pool versus lower-priced homes that see a greater spike from a kitchen upgrade.
What Floors to Install for Highest Home Value
The question everyone wants to be answered is how to get the best ROI from any upgrades you commit to. For flooring, the answer comes down to installing hardwood when considering ROI.
But there are other factors at play, as mentioned previously when it comes to value-added based on the geographical location and price range.
Let’s break down your basic options for the highest ROI.
The average ROI for installing hardwood floors is 70% to 80% making it a worthwhile investment for those looking to amp up the value of their home. Another plus is buyers want hardwood and will actively search for it in potential homes. Hardwood floors will cost between $9 to $18 per square foot for combined material and installation.
Tile, Stone or Marble
Tile, stone, and marble cost around $12 to $25 per square foot and can net an ROI of around 70%. These are great alternatives to hardwood in tropical climates where mold and warping are a concern.
The downfall? The cost. Tile, stone, and marble floors can be pricey to purchase and to install.
Vinyl and Linoleum
Vinyl and linoleum can give you the hardwood look without the hardwood price. These flooring types have plenty of options when it comes to size and color. Plus, they’re decently cost-effective at between $2 and $12 per square foot, laminate being the less expensive of the two. But you lose out on the overall increase in the value of your home that you get with hardwood.
Carpet is fairly cheap in comparison to other options. You can expect to pay under $7 per square foot. The problem is that buyers don’t look for carpet and some actively avoid it altogether.
Your ROI for new carpet will only be 25% to 40%, paling in comparison to other options. This may be a good option if you’re short on money to invest and need to replace badly damaged flooring.
Should You Repair or Replace Your Flooring?
At some point, you should ask yourself, “Is it more cost-effective to repair or replace my flooring or should I leave it as-is?”
Make sure the cost of flooring fits the overall cost of your house. Someone looking for a lower-priced home isn’t going to cash-in extra for new marble flooring. Consider the homes in your area and the style of your own home when deciding on new flooring.
Tips to Improve Existing Floors Before the Open House
Consider the flooring already installed in your home and ask the following questions as you decide on any flooring renovations:
- Does my flooring match across different rooms to create flow?
- Does the flooring color match the style of my home?
- Is the color and style of my flooring attractive to a wide variety of potential tenants or buyers?
If you decide to keep the existing flooring in your home there are a few things you should keep in mind before you open your doors to potential buyers.
Your flooring should be in good condition.
Appearance should make potential buyers feel as though they could eat off the floor. This means no strange unidentified stains and an overall fresh feel.
Hint: If you wouldn’t let a baby crawl on the floor, it might be time to replace.
What Other Home Upgrades Can Improve Home Value?
If you’re completely renovating your home before you sell or you’re stepping into the home-flipping realm, consider the following as top priority for improving home value.
- Replacing old windows with new energy-efficient ones
- Remodel the kitchen entirely or replace the countertop and cabinetry
- Update or replace the HVAC or plumbing as needed
- Update all electrical systems
- Replace old or damaged flooring
First impressions say a lot. Make each room an experience potential buyers won’t forget. New flooring and other common renovations can help create a visual experience that will garner higher offers and give you a valid reason to list your home at a higher cost.