Renovation vs. remodeling: The differences explained

When it comes to updating your outdated kitchen or revamping your home for your growing family, you want to either renovate or remodel your home.

Renovation and remodeling are two terms often used interchangeably, but they pertain to different aspects of home improvement. 

Looking to freshen up your space or wholly transform it? Then, understanding the distinction between renovation and remodeling is essential when talking to a contractor or a mortgage lender.

What’s the difference between a renovation and remodeling a home?

Let’s take a closer look into the distinct differences between renovating and remodeling your home.

What is a renovation?

When you renovate your home, you’re making significant changes to your home's structure, layout or design.

 A home renovation involves transforming your existing living space into something more appealing and tailored to your needs. For example, let's say you have a small, outdated kitchen. In this case, a home renovation could involve replacing kitchen tiles or upgrading appliances.

When contemplating a home renovation, there are several important factors to consider:

• Establish what you want to achieve: Consider your goals, priorities and how the renovation will enhance your living space.
• Determine your budget: Along with setting a renovation budget, it’s important to allocate funds for unexpected expenses. Make sure to also obtain multiple quotes from contractors and suppliers to get the best value for your money.
• Consider the timeframe for the project: Home renovations can disrupt your daily life, so prepare for potential delays. Communicate with your contractor to establish a realistic timeline and factor in any necessary permits or approvals that may be required.
• Think about your lifestyle: How will renovations affect your lifestyle during and after the project? Will you need to relocate temporarily or impact your daily routine?
• Research reputable contractors: Follow up on references, read reviews and ensure they have the necessary licenses and insurance. Clear communication and a good working relationship with your contractor are key to a successful renovation.

Pros and cons of renovations

Renovating a home comes with several benefits, like how much more money you can save when renovating a home versus remodeling it. Let’s explore the advantages and disadvantages.

Pros

• Renovations allow you to update and improve your living space without needing to demolish and build your home back up.
• It allows you to customize your living space to suit your style preferences and make it more functional.
• Updating your home to be more energy-efficient can lead to lower utility bills over time.
• You can significantly boost the property's value when it's time for you to sell with capital improvements.

Cons

• They can be a costly financial investment.
• They can significantly disrupt your daily life depending on the scale of the project.

What is a remodel?

Remodeling your home is a significant improvement project involving changes or updates in an existing space. A few examples of a remodel include building a new room or moving around permanent structures (i.e. sinks and toilets).

When contemplating a home remodel, there are several important factors to consider:

Contemplating a home remodel? Consider these factors before you decide:

• Set a realistic timeline: Having a realistic timeline and being prepared for potential delays along the way is essential. Depending on how much you would like your home to be remodeled can take weeks, months or even longer to complete.
• Consider the costs: Expenses can vary widely depending on the size, complexity and desired outcome. Being financially prepared to remodel your home by budgeting can help eliminate some of the stress associated with the cost commitment.
• Do thorough research: This includes gathering ideas, creating a detailed budget, and finding reputable contractors or professionals to assist with the remodel. Taking the time to plan and prepare can help minimize unexpected surprises and make the process more manageable.

Pros and cons of a remodel

Remodeling a home offers numerous advantages that can enhance the property's functionality and value. However, there are drawbacks to think about as well.

Pros

• Allows you to change the layout of your house completely to suit your preferences.
• Can increase the value of your home by adding features like an extra bathroom or putting on an addition to your home.
• Offers the opportunity to create a more functional living space.

Cons

• High-end materials or professional contractors can be costly.
• Expenses can become unpredictable if the project goes over budget.
• Requires careful planning and budgeting to avoid financial surprises.

Should you renovate or remodel?

When you are determining whether you should renovate your home or remodel your home, here are some questions you should consider:

1. What is your budget?
2. How long do you plan to stay in your home?
3. What are your goals for the project?
4. Do you have the time and skills required for a DIY project?
5. Do you want to add value to your home?
6. How will the project impact your daily life?
7. Will you hire a contractor?
8. Are you going to sell your home soon?

Renovation and remodeling FAQs

Now that we've explored the differences between remodeling and renovating a home, let's look at some frequently asked questions.

What’s the difference between renovation and restoration?

Renovation refers to the process of improving or updating a space, usually for functional or aesthetic purposes. Restoration, on the other hand, involves returning a space to its original or historically accurate state, preserving its original features and materials.

While both involve making changes to a space, renovation focuses on modernization, while restoration emphasizes preservation.

What does remodeling consist of?

Remodeling typically involves making changes or improvements to a building or space. This can include renovations such as updating fixtures, painting walls, replacing flooring or redesigning the layout. The scope of a remodeling project can vary depending on the goals and budget of the individual or organization undertaking it.

What are the two types of remodeling?

Interior remodeling and exterior remodeling are the two types of remodeling. Interior remodeling involves making changes to the inside of a building, such as renovating a kitchen or bathroom. On the other hand, exterior remodeling focuses on improving the outside of a structure, such as adding a patio or replacing siding.

What does a full renovation mean?

A full renovation refers to a comprehensive overhaul of the area of the home being renovated, typically involving significant changes to its structure, layout and aesthetics.

It often includes demolishing existing elements, such as walls or fixtures, and replacing them with new ones. This process aims to completely transform the space, keeping the home area up to date and meeting the desired vision that the homeowner wants.

The bottom line: Choosing to renovate or remodel

There is a vast difference between renovating and remodeling a home. Renovating your home involves making cosmetic changes to enhance the appearance of your home without altering its structure. Alternatively, remodeling focuses on transforming the structure and layout of a home.

If you're considering a home project but lack the necessary funds, applying for a home equity loan can be a viable solution. Whether you're looking to refresh your home's appearance or completely transform its layout, a home equity loan can help you turn your vision into a reality.