In the St Louis area, hardwood gets a home sold MUCH faster than carpeting. Buyers like it and like the ease of taking care of it. As a result, we figure in faster sales time, and fewer mortgage payments as well when we look at the return on the investment. Typically we don't recommend wood in a kitchen unless people can really take care of it, since if a dishwasher goes on the fritz when you aren't there to take care of it, or an ice maker, you can end up with lots of standing water which can damage the floor before it's found (laminate is worse since it will swell), so tile can be a safer alternative.

When you say 'return' the question of your intentions for the property have to be known. If you intend to occupy for a short time, stay with nuetral colors in earth tones, and keep your costs down. If you intend to occupy for 5-10 years, I have always thought that the 'return on investment' (ROI) takes 2 forms. 1) Return OF the investment. Will you get your money back plus some? In this market, you can't miss. 2) Return ON the investment. What kind of dividend or regular income does it provide? Well, in a house that is better measured by 'What does it do for your lives?' How much do you like it? Does it make you happy? Does it make your lives richer?
From that perspective, I would go with what turns you on. Hardwood is good for resale, but hardwood in kitchens gets wet. Can be a problem in the long term. Good quality hardwood is warm and rich. If you dig it, Go for it! What price 10 years of enjoyment? Recommend throw rugs by the sink, and some sort of indicator of moisture under the cabinets near any plumbing.

Hardwood, whether solid or engineered is easy to maintain and is a classic look and if the proper cleaning products are used will last a long time (Bona is a great naural product for hardwood and laminates). If you are going to put tile in your eating area then you should put it in your kitchen as well for continuity. A small area of tile only looks strange and out of place. It depends on how big the area is too. The experts say not to use more than two products in one visual area. Tile is a colder product, wood is warmer. Use the highest quality product you can afford and make sure you hire a reputable installer.

Jessica -
There are a few other factors in play here. Certain areas of town, neighborhoods and square footage require upgrading in flooring products. If you're talking about a $350,000 home in an upscale neighborhood that you got for $300,000 and will be there for a few years (assuming the market returns which it will eventually), then you absolutely should go with hardwood. It is more durable and sends a more expensive, classier message to the buyer. If you're in a small starter home in a tract housing neighborhood, you could be putting too much money in hardwood and might consider a laminate. There is not, unfortunately, a mathematical formula showing which way to go. It is a judgement call in most instances but wood and tile rather than carpet and vinyl flooring should be used as you move up in square footage and price.

Many agents will come and give their opinion for free if you just make the call. I would always want to have someone ask me what I thought BEFORE they made the decision as I can tell them whether their neighborhood will support the extra expense. If you have pets and children, carpet doesn't last as long and Pergo or some other wood laminate wears well (dog nails) sometime actually better than wood. That said I wouldn't put laminate in an expensive house. Even if you aren't going to sell for several years, the right kind of agent would love to talk with you now knowing you'll be loyal and call them again when it's time to list.

Hope this helps.
Trisha Lee Broker/REALTOR, REMAX Boone Realty, Columbia, MO
573-999-1000 TrishaLee@Remax.net

Hardwood is a popular choice and a wise investment - it will stand the test of time provided it is periodically cleaned and sealed

Tile (especially Travertine) was being had for incredibly cheap - this is also a good durable material (although you would want to use stone as opposed to clay or manufactured)

carpet does wear and tear fast and thus has a much shorter half-life than hardwood or tile