Hardwood Flooring and Appraisals/Market Value

[adriancrocker]

Hi,

This is my first post here, so forgive me if it is in the wrong place.

Anyway, I recently purchased a house and the flooring (carpet, vinyl) needs to be replaced. My thinking is to do carpet in most of the house and hardwoods (installed by me) in the great room and kitchen. My alternative is to do more carpet in the great room and vinyl or tile in the kitchen.

We may be selling in two or three years so resale is an important factor. I have always heard hardwoods add value to the house, but does this mean appraised value or simply market value? Either way is it smart to pay a extra for hardwoods for resale purposes? The house is in an upscale area.

One last question, does it make any difference to the buyer or appraisers whether the hardwoods are engineered (not laminate though) or solid? The ylook the same in the stores, but engineered is less expensive.

I would appreciate any info you guys have.

Thanks in advance.

 

[John LaBelle]

Hard to say without knowing the neighborhood. What do the other homes in the area have? If buyers are looking for hardwood, then I'd probably install the hardwood. There are also varying degrees of carpet and tile as well. Just something else to consider.

They may look the same in the store, but I can usually pick out laminate vs. real hardwood.

 

[wyecoyote]

Depends upon your market area and the house. If you are only staying 2 years+/- is the cost and return on your investment worth it. Hardwoods and tile/travertine/marble/granite etc.. are in my market usually seen as the upper end and most of the time do add value.

I assume that on the engineered floors you are not talking about the laminate systems but ones where there is a thin skin of the wood over a plywood style sandwich system. I have seen these in some houses. Usually can tell the difference by walking on them if they are the engineered or actuall hardwood. Haven't seen much of a difference price wise in my market of a reaction.

 

[Restrain]

It's funny. My folks had a home built new in the 50's, covered the hardwoods because the floor was cold. Now, in the era of central heat, hardwoods are "warmer" and good hardwoods generally bring more value..sometimes a lot.

 

[Lestat]

Check out the other homes for sale or that have sold in your neighborhood. Do they have carpet or wood? Laminate or the real thing. I find it interesting how many homeowners tell me they have hardwood floors which are actually just laminate. Anyone ever discuss hardwood vs softwood? We had a lawsuit here recently. An agent advertised hardwood floors which actually were pine which is a softwood. The buyers ended up winning and got a hefty settlement. Makes you stop and think eh?

 

[robert higgins]

also you can check with some local real estate agents and see what they say.

 

[Mike Garrett RAA]

IN MY MARKET hardwood floors do add value. Could I tell you how much? Not without doing research into the market. By the way...appraised value should always be market value unless the appraiser is asked to appraise to a different definition of value which would not be your case.

I wish you well.

 

[Mountain Man]

It depends on the price range, and what is common in your local neighborhood. While you might not see a dollar return by installing wood, it can set your house apart from others in the market, so marketing time can be less.

Personally, I love #2 red oak, and it cost me about $2.60 per SF with 3 coats of poly. I use it in most of my houses since that is about the same as a mid grade carpet.

Laminates (Pergo) comes in different grades, and price ranges. You can go with the cheaper grade and off brand, but it won't last as long. However, since you plan to sell in 2+- years, I would go with a typical "builder spec" grade.

As for prefinished hardwood, they can cost as much, and often more, than real hardwood. But with prefinished, it's just a very thin veneer of wood. Soooo, you can't refinish it more than 1 time... 2 tops.

 

[Scott Kibler]

Either way is it smart to pay a extra for hardwoods for resale purposes? The house is in an upscale area.

Around here vinyl in the kitchen would be a negative in an "upscale" market.

 

[adriancrocker]

Thanks everyone, you all have been very helpful. A little background about my home and neighborhood. It is in a very nice subdivision with mostly custom built homes in outer metro Philadelphia (Chester County) and houses average around 525k and are on average around 3000 square feet. Most are upscale and have hardwoods, granite countertops, wine cellers, etc. My house is an odd ball in the subdivision though, it is 1650 sq ft and I just paid 325k for it. There really are no comps size wise in our subdivision. It is the same age as the other houses, same quality of construction, and a premium lot, but does not have all the upscale amenities and is obviosly much smaller. I would like to put in granite countertops, nice new flooring and just do some general cosmetic work to bring it close to par with the other houses. I realize with a much smaller home, I will never get near what the larger houses sell for, but I would like to close the gap in pricing when I do sell. Is my plan sound or should I just do the bare minimum and sell for less when I am ready to move?

I'm getting a bit away from just the flooring issue, but I would be interested in hearing your thoughts. I may also check with a local real estate agent as Robert recommended.

Thanks again.