The Upgrade You Should Make in 2023

Written By Timothy Harenda

“And the award for the interior upgrade with the highest ROI goes to…”

*Dramatic pause*

REFINISHED HARDWOOD FLOORS!

*Wild applause*

It’s true! The National Association of REALTORS remodeling impact report from 2022 found that homeowners that refinished their hardwood floors saw a 147% recovery of their costs when selling their home. Calculating your ROI (return on investment) for any home upgrades is critical when preparing to sell, and this one upgrade stood above the rest when it came to getting homeowners the highest percentage of costs recovered.

Interesting enough, the project with the second highest ROI was new hardwood flooring, with a 118% recovery of costs.


Let’s break this down a little:

  • The estimated cost to refinish your hardwood floors is approximately $3,400, as calculated by the National Association of the Remodeling Industry.

  • The resulting boost in value from this job was approximately $5,000, as estimated by the National Association of REALTORS. In other words, buyers would pay around $5k MORE for a home with refinished hardwood floors as compared to a home with scratched up, faded, or worn out hardwood floors.


Let’s take a look at what this means for buyers and sellers:

  • If you’re BUYING a home with wood flooring that looks worn, but you don’t want to break the bank to replace it, refinishing the floors can be a great options! However, the first question to ask, as obvious as it sounds, is whether your wood floors are able to be refinished. Here’s a great article that speaks to that question.

  • If you’re SELLING a home, is this a project that’s worth your time and money? Maybe. Assuming that your floors are able to be refinished (see article link above), the big question to consider would be the current state your floors are in, especially compared to others for sale in the neighborhood. Remember that home shoppers are always comparing the features your home to the homes they just looked at. Do your floors already compare favorably with others nearby? Then you may not see as much of a boost in value. However, if you’re noticing other homes that seem to have superior flooring, then it may be time to refinish.

A word of warning though: Don’t be surprised if the finished result makes you change your mind and not want to sell your home! 90% of those that had their floors refinished reported that they had a greater desire to be home since completing their project.

Happy sanding!


Source: Remodeling Impact Report published by the National Association of REALTORS® Research Group

Timothy Harenda