Renovation vs. remodel: What’s the difference?
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 put in 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.
Warning
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.
If your goal is to make money on your renovation or remodel, remember, most updates simply 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:
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.
(Better Homes and Gardens is a magazine and website devoted to ideas and improvement projects for your home and garden, plus recipes and entertaining ideas. Online at www.bhg.com.)
©2024 Dotdash Meredith. All rights reserved. Used with permission. Distributed by Tribune Content Agency, LLC.
