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The average return on investment (ROI) for installing hardwood floors in one's home ranges between 70–80 percent, potentially adding up to 2.5 percent to the sale price.

“Hardwood floors will increase the market value of your home quite a bit ... Invest in hardwood flooring now, and reap the benefits for decades to come," says Kimberly Villa, marketing manager for Kaminskiy Design and Remodeling in San Diego. Realtor.com says that refinished hardwood flooring ranked as one of the most appealing projects to homebuyers in a recent survey.

Less expensive options such as faux hardwood floors still give the look and feel of the real thing; they're also engineered to withstand more wear and tear. The physical cost of faux versus real hardwood varies depending on the species of wood, but where you'll really see a difference in price is in the installation.

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