The first thing I would like to address in the dilema of considering carpet or wood flooring, is, aesthetics.  We all have our own idea of what looks good.  I will tell you, most of the buyers I work with are MORE impressed in visiting homes with wood flooring.  Also, having toured sold identical models of homes in which some have carpet, some have wood flooring, the rooms with wood flooring look bigger than the rooms with carpet.  That aside, I will point out pros and cons of both, from an ROI point of view.

Carpet Pros

1. dampens noise
2. soft/comfortable underfoot
3. variety of colors and styles to suit

Wood Flooring

1. lasts 30-50 years, depending on product
2. easy to keep clean
3. lower cost of ownership than carpet
4. variety of product and colors to suit
5. never goes out of style

Articles to check out:

• Berber vs Wood Flooring
• Wood vs Carpet
• Carpet vs Hardwood Floors