When you are ready to tackle home improvements, the discussion may start with deciding between renovation vs. remodel.
What’s the difference between remodeling and renovating? They may sound similar, but are they the same? Both remodeling and renovating are projects meant to improve the look and feel of your home. But your choice can ultimately determine how much the project costs.
Knowing the difference may help you understand the cost vs. value of your home update. And this information could be helpful as you plan a realistic budget and choose a way to pay for it.
Both are projects meant to improve a part of your home, but the goals, scope and costs may be quite different. Deciding what you want to accomplish and how much you want to spend will help you identify which to choose.
A renovation is a refresh: restoring or updating a room to improve its condition without changing the basic structure or layout. You might want to make a space feel newer and more modern, or fix wear and tear without major construction.
A room or home renovation could be as limited as a coat of paint you do yourself and new or reupholstered furniture. Or you could update plumbing or lighting fixtures and need to engage tradespeople.This might be the ideal choice if you want to improve your home’s look and feel without changing its layout. But keep in mind, you’ll still need to do some planning, including choosing materials and finishes.
For example, you might move into an older home whose kitchen has seen better days. You could renovate the kitchen to make it look newer but stay the same structurally by:
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What is a remodel?
Remodeling tends to be more extensive than renovating because it means changing the structure, layout, or function of a space. It’s more about transformation than restoration.
Examples of a remodeling project:
Because a remodel may involve moving utilities around and changing the infrastructure of a home, you may need permits and inspections. This will depend on your hometown’s requirements, so it helps to work with a contractor who can walk you through it all. And all of this makes a remodel pricier.
Remodeling pros and cons
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Whether you’re thinking about a renovation or a remodel, you may want to start by setting up a budget, followed by planning on how you’ll pay for it. You may then want to create a step-by-step checklist for how the work will get done. Some additional funds should then be budgeted for unexpected costs.
Even though renovations are more limited in scope than remodels, they can still be costly. Prices depend on many things, and you can make choices to adjust the final costs. These include how much of the work you do yourself, the materials you pick for new cabinets or surfaces, the price of new fixtures or furniture, the cost of paint or other new finishes, and many other details. For instance, kitchen cabinets from a big-box store could cost less than custom-made cabinets.
The cost of renovations may vary widely depending on how you decide to move forward. Some renovations could be relatively inexpensive if they involve simple repainting and replacing a few plumbing or electrical fixtures.
More extensive room renovations may be much more costly, for example, if you plan to replace all bathroom fixtures, kitchen appliances, or outfit a new bedroom in a basement or attic.
And remember, costs vary by location . Big urban areas often have higher labor and materials costs than other places, and that affects the total project cost.
Remodels are typically more extensive than renovations. As a result, you may need to budget more for a remodel than for renovations. Like any home improvement, the final price depends on many things, such as the size of the space to be remodeled, materials used, labor costs, building permits, new appliances, and the age and condition of the space to be improved. Permitting and contractor work can add to the bill.
If you have big changes to make, you might want to engage a contractor early to help scope your costs. An expert can help you estimate, and may be able to help you identify where you can save so you can stick to your budget. Planning your schedule may also be a challenge as the project might take an extended period of time.
Remodeling projects sometimes lead to unexpected costs. For example, you might discover that the changes you want require you to bring your home up to code.
A full bathroom remodel, for example, might involve new plumbing and electrical lines, including opening walls or floors. A kitchen remodel might call for changing the layout of appliances and cabinets. Remodeling a master bedroom and bath can also be among the most extensive types of improvements you can make. In general, these projects can easily run from several thousand dollars to more than $100,000.
Choosing between a remodel or renovation could be a big decision. It may come down to what fits your budget and what you can afford. Or the decision may be driven by the current state of your home, including whether you need to bring it up to code. You may also need to think about how much each type of project might disrupt your life, and how you will manage a home improvement project.
Focus on high-impact areas like kitchens, bathrooms and curb appeal. These updates could boost resale value without the cost and complexity of a full remodel.
Some projects might have a higher return on your investment. Those could include garage door replacements, exterior home improvements like manufactured stone veneers, and minor kitchen remodels.1
If you plan to live in your home for years to come, remodeling can help you customize your space to better suit your lifestyle. While remodeling may require temporary relocation or living with construction noise and dust, making your dream home could be worth it to you.
Renovations typically allow you to stay in your home during the project. If what you want is a refreshed space that feels cozy and “you”, a renovation may get you that with less disruption and cost.
One of the easiest ways to save money on your remodel or renovation is to reduce the size of the project. Instead of fully remodeling a bathroom, you could replace the vanity and toilet and add a fresh coat of paint. Or instead of building an addition to your home, you might repurpose an existing room to give you more space.
If you have the skills (or have relatives or friends who do), you might be able to do some of the project yourself, which can save you on labor costs. Just remember that some home repair projects might require that work be done by a licensed professional. Find out the rules in your area before starting the work.
Finally, focus on the materials. Rather than replacing everything, think hard about what you can keep and reuse. And opt for budget-friendly materials like manufactured countertops instead of natural stone.
There are several ways to pay for home improvement projects. The best option often depends on the scope of your project and your financial situation. Here are some options to consider:
With Discover® Personal Loans, you can estimate your monthly payments ahead of time and apply for up to $40,000. Knowing what you might pay each month, and when the loan should be paid off, might help you build and keep to a budget for your home improvement work.
A remodel or renovation can help convert a house into a home. Even though home improvement projects take time and money, they could be worth it in the long run. By knowing which type of project is right for you and how the right financing could help, your dream home may well be within your reach.
Want to explore the pros and cons of a personal loan for home improvement?
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