How Much Does New Carpet Increase Home Value?

On average, homeowners spend $5,400 improving their homes before listing them for sale. They invest in landscaping services, pressure washing, deep cleaning, and other improvements to make the property more desirable.

Most upgrades strike a balance between fashion and functionality, which means some improvements might make the house more aesthetically pleasing while others will prevent flags in the home inspection. 

One popular upgrade is new carpet, which can make homes seem cleaner and more desirable. New carpet can also potentially raise your home’s value and help it sell faster, depending on your circumstances. 

Learn how much new carpet increases your home value and why you might want to invest in this upgrade before listing. Here’s how to move forward with this improvement strategically.

Does New Carpet Increase Home Value?

One of the main things to consider with your home upgrades is the return on investment (ROI), which is the amount you get back in increased resale value.

The challenge is that different flooring types have varying ROIs, which means you need to be strategic about the floors you choose. Here are a few ROI estimates from the experts at USA Today that break down flooring values. 

• Most experts believe you can expect a 50% to 80% ROI for installing new carpet. Potential buyers will notice the carpet and appreciate how clean it is. The quality of the carpet also determines its ROI. 
•  Hardwood floors appeal to buyers and have a high ROI. You can expect at least a 100% ROI by investing in these floors; some flooring professionals believe you will get back even more. Refurbishing worn-out hardwood flooring can also generate a high ROI. 
• Laminate flooring comes with a 50% to 65% ROI. However, this comes with a caveat that it should be durable, high-quality, and professionally installed. No one wants to buy floors that wear out easily. 

Like most home improvements, choosing flooring upgrades requires a cost-benefit analysis. Installing new hardwood floors is expensive, but they could add a wow factor to your home that attracts buyers and gets you the offers you desire. Carpet replacement could be more affordable and drive the same results if you live in a hot real estate market.

Cost vs. Value of Carpet Installation

While general ROI estimates can give you a high-level idea of the benefits of carpet installation, it helps to calculate the cost of this project first so you can identify how much you would like to get back from it.

On average, carpet installation costs between $3 to $11 per square foot. If you are replacing carpet in three 8 x 12 bedrooms, then your total square foot coverage would be 288 square feet. This means your costs would likely fall between $864 and $3,168.

There is a significant variance in the cost of installing new carpet because there are multiple carpet styles and materials. You can opt for the most basic carpet products on the market and save money, but the investment might not impress prospective buyers. Similarly, you don’t want to waste money on quality carpet that buyers will just rip out. 

Carpet costs also vary based on labor. If you install the carpet yourself, you will save money and have a lower ROI target. However, this takes time and know-how. Many would prefer to hire a professional who can complete the job within a day. 

Knowing the cost of the project will help you decide whether you will get value from replacing carpeting in your home. You can also talk to a real estate agent to see if they think new carpets would help your home sell quickly and for the ideal asking price.

Other Benefits of New Carpeting

Some home upgrades have tangible benefits to buyers. House hunters will picture themselves cooking over a new stove or appreciate a new water heater. While new carpet has tangible benefits, it also improves your home in intangible ways. This makes it hard to track the overall ROI. Here are a few ways new carpets provide added value:

• They make a home seem cleaner. New carpeting is free from dirt, stains, wear, pet odor, and child smells. Your entire home will feel cleaner and more valuable, winning over buyers. 
• They make your house turnkey-ready. Even if your buyers plan to replace the carpet with hardwood or laminate flooring, they can still live with the new carpet. Some buyers won’t move into homes until the carpet is deep cleaned or replaced. 
• They can make your home look bigger. Cleaner homes feel more open and larger, which increases their perceived value. Instead of worrying about your old, dingy carpet, buyers can focus on the property as a whole. 
• They will make your house feel cozy. New carpet can strike a balance between making a space feel large but also welcoming. Buyers might have an easier time picturing themselves in your home compared to hardwood or tile floors. This is particularly relevant if you are selling a vacant property as wood floors will create an echo.

Evaluate the state of your carpet and decide whether a deep cleaning will have the same impact as replacing it with new material. If your carpet is worn out, ripped, or beyond cleaning, it’s time to replace it. Updating the carpet could have the same effect as pressure washing the front of your house or adding a fresh coat of paint to the kitchen.

Choosing the Right Carpet for Maximum Value

Understanding your square foot needs and desire to replace your carpet is only the first step of this project. There are additional steps required to choose the best carpet that will maximize your ROI.

Here are a few things to keep in mind to make sure you impress buyers without overspending.

Replacing or Installing Carpet

The ROI on your project will depend on whether you are ripping up existing carpet or covering another form of flooring. Many Realtors find their clients prefer tile, so you might not want to replace this flooring option if you have it. However, adding carpet to a living space like a bedroom can be seen as an upgrade. 

If you are replacing your current carpet, focus on choosing clean, durable materials. If you want to install carpet, make sure this choice will actually be an upgrade.

Carpet Quality and Types

The quality of your carpet replacement will determine how much value it provides. If you install cheap or poor-quality carpet, your buyers will notice. They might see this as a drawback of buying your house, even though you thought the carpet was an upgrade.

Conversely, you don’t want to overspend on carpet that buyers plan to replace anyway. Here are a few indicators of quality that can help you choose the right option: 

• Durability: it’s always worth investing in water-resistant and pet-resistant carpet. 
• Density: dense carpet will cost more but will wear out slower. 
• Materials: wool carpet is of higher quality but is also more expensive. Some carpets shed and require regular vacuuming in the living space. 
• Touch: consider how the carpet feels. Opt for a soft carpet material without creating an excessively plush experience. Avoid scratchy or plastic-feeling carpet squares.   

Sometimes the most durable material is too uncomfortable to buy. When choosing carpet, strike a balance between durability, softness, and price. 

Color and Style Considerations

In the same way that home sellers use a fresh coat of paint to bring a neutral color to a room, fresh carpet increases the chances that buyers won’t get distracted by your personal interior design preferences. Avoid polarizing or dramatic colors that can put off buyers. Dark colors are an absolute no-no, along with bright colors and dramatic patterns.

Similarly, you skip the perfectly white carpet as well. This carpet can stress out buyers who will worry about staining it. White carpet in high-traffic areas can quickly turn brown and dirty. Instead, look for cream and tan carpeting that simultaneously hides dirt while making a space seem light and bright.

An interior designer can help you pick out neutral carpet colors that are popular with buyers and homeowners right now. They can recommend some shades that will add value to your home while also matching your design preferences.  

Additional Considerations for Carpeting and Home Value

There are a few additional things to keep in mind as you decide to upgrade your carpet. New carpets can impress potential buyers but also appeal to their lifestyle needs.

That said, not everyone likes carpet, and you might be better off installing laminate flooring and adding a few rugs for staging instead. Here are a few considerations to review. 

• Noise insulation: carpet does a much better job of absorbing noise than tile, hardwood, or laminate flooring. This could be an ideal option if you are selling a condo that has thin walls. 
• Target buyers: carpet is soft, which is ideal for new parents who will let their baby play on the floor. It is also warmer to the touch than other materials, which is ideal for cold climates. However, buyers with pets might not want carpet because it is harder to wipe up messes than tile and hardwood. 
• Allergens and dust: people who are sensitive to dust might have reactions to carpet, which traps dust mites and other dirt in its fibers. Even clean carpets become conduits for allergens over time. Replacing your carpet can help people with these sensitivities, though some buyers might avoid carpeting altogether for this reason.
• Home decor trends: flooring preferences change over time. You might decide to invest in laminate flooring instead and use rugs that match current trends. When color palette preferences change, the buyers can simply replace their rugs. 

There’s no way to please everyone. One potential buyer will get excited about the new carpet while the next one wishes it was tile. Consider what types of flooring make sense for your house and your budget before starting the renovation process.     

Talk to Your Realtor About Highlighting the New Carpet

If you replace your carpet before listing your house, make sure your real estate agent knows to highlight this asset during showings and open houses. Your carpet can be the main focal point of the room and the first thing buyers notice when they walk in. 

One way to highlight the new carpet is by asking buyers to wear shoe coverings when they tour the home. Your agent can highlight how the carpet was recently replaced and this practice ensures it stays clean until the buyer moves in. Your agent can also stage your house around the carpet by ensuring there is plenty of open space to highlight it. 

After you replace your carpet, make sure the rest of your house is clean as well. Wipe down countertops and clean your bathrooms before showings to maximize the clean feeling. This will create a positive impression for buyers who don’t want to move into a dingy or dirty house.

Discuss Upgrading Carpet With Your Real Estate Agent

Updating the carpet in your living rooms and bedrooms can make your house look bigger and feel cleaner. This can make it more desirable to buyers – especially if you currently have smelly carpet that has been worn out by kids and pets. It doesn’t cost much to replace carpeting and this project can be done quickly by a contractor; however, you still want to be mindful of the investment. Understand your costs and decide whether a carpet upgrade will really benefit your home.

If you aren’t sure whether updating the carpet will have a big impact, talk to your real estate broker. Someone who has experience selling real estate has seen dozens of carpet conditions and will know whether your flooring needs to be replaced. They can advise you on how potential buyers will see the property and if new carpet can help it sell.

To find a licensed real estate broker in your area, turn to FastExpert. You can hire a Realtor who will provide an honest opinion on your home and help you improve it in a way that attracts potential buyers.