While it might seem inconsequential to use the terms “renovation” and “remodeling” interchangeably, it can make a major difference when communicating your scope of work to contractor candidates. Many DIYers and pros alike seem to rotate between “renovating,” “remodeling,” and even “flipping” when describing their projects. Still, there is a difference when it comes to renovation vs. remodel.
Put simply, remodeling is more in-depth than renovating. But what truly defines these seemingly synonymous terms? This guide explains the difference between renovation vs. remodel, plus which option may be better for your home project.
Renovation vs. Remodel—What’s the Difference?
Think of it this way: Renovation consists of making something old look and feel new, while remodeling consists of making something new out of something old. The difference comes down to your project’s goal. If you’re simply refreshing your space with new finishes and fixtures, you’re renovating. However, if you’re looking to take out a wall or two, rearrange the floor plan, and tack on an extra bathroom or closet, you’re remodeling.
The Renovation Process
Renovation involves updating the look of a home while maintaining its existing layout and structure. If you buy a home because you fall in love with the floor plan but can’t wait to rip out the dated wallpaper, it’s time for a renovation.
Renovation is generally more DIY-friendly than remodeling. This is because most renovation tasks—painting, installing flooring, refacing cabinetry, and swapping light fixtures—can be done by even beginner DIYers. Tasks considered remodeling—such as digging footings for additions, reframing a house, and rerouting plumbing and electrical to remove walls—aren’t in most DIYer’s wheelhouse. Plus, renovations often don’t require you to pull a permit, which may or may not necessitate a contractor, depending on your local building codes.
Sometimes, changing finishes requires structural changes. For example, replacing laminate flooring with tile may require solidifying the floor system with beams and a new subfloor that will both support the weight of the tile and keep it from cracking.
Examples of Renovation Tasks
- Refinishing floors
- Painting
- Refacing cabinets
- Swapping light fixtures
- Updating plumbing fixtures
- Changing door hardware
- Adding trim
The Remodel Process
Remodeling encompasses projects that restructure the property. Looking to expand your kitchen, add a bathroom, or build a sunroom? You’re remodeling, not renovating.
Additionally, remodeling covers major tasks like relocating infrastructure—for example, adding or replacing electrical wires and breakers, redoing plumbing to remove freezing water lines from a drafty attic, or adding central AC to a historic home. These tasks often require a permit or approval from your local authorities, especially for historically registered properties.
Hiring a Contractor
Be sure you talk to the right type of contractor for your project. If you’re planning a large remodel involving many different surfaces and systems, a general contractor is your best option. The general contractor will work with the subcontractors (plumber, electrician, drywaller, etc) and set up a schedule to bring in the right workers at the best times. For smaller jobs, you may be able to hire the subcontractors yourself, but you’ll be managing the schedule and budget while making design decisions, which can be a lot to do for a DIYer.
What Is Remodeling?
Remodeling entails restructuring or drastically altering a given project.
Examples of Remodel Tasks
- Removing walls
- Changing floor plans
- Adding central AC
- Building additions
- Finishing a basement
- Adding a second level
- Building a deck or patio
- Adding a bedroom suite
Renovation vs. Remodel: Cost and Value
Renovation vs. a remodel is generally less expensive. Refacing cabinets and updating plumbing fixtures cost less than structural changes like knocking out walls or adding beams. Plus, after structural changes are made, you’ll still have to pay for new finishes and fixtures, so you’re essentially paying to remodel, then renovate.
Renovations are easier to budget for, as many of the costs of remodeling are hidden. Remodeling is often more involved than it seems. For example, if you were to remove a wall between a kitchen and a dining room to open up the floor plan and add an island, there’s a good chance that the wall is hiding things like electrical wires, water lines, and ductwork. Once that wall is gone, those things will have to be rerouted, which is a major process that can involve a lot of red tape. On top of this, you must consider that the wall is potentially load-bearing and will have to be replaced by a costly beam.
Because less money is invested on the front end of the project, renovation often has a higher return on investment (ROI) than remodeling. A renovated home looks updated and move-in ready, which is enticing to buyers. This is often still the case with remodeled homes; it just requires more money to get the job done. While nice, projects like enlarging a kitchen and opening up a floor plan don’t always pay off when it comes time to sell.
When home shopping, be on the lookout for shoddy renovations. Flippers know the updates buyers want to see and will often give houses a quick visual refresh to make them sellable, skimping on necessary structural improvements. We recommend hiring a thorough home inspection before closing.
Renovation vs. Remodel—the Bottom Line
If your goal is to make money on your renovation or remodel, remember that most updates aren’t profitable. In fact, the national averages show that only a small percentage of home updates recoup 100% or more of the initial investment. Of course, the actual ROI is dependent on many variables, such as:
- Total investment cost
- Location
- Market
- Project scope
Homeowners can save serious money by doing the work themselves, another reason DIY-friendly renovations have a higher ROI than remodel jobs that require a contractor.