The words “renovation” and “remodel” are often used interchangeably, but if you’re planning some major home improvements, it’s best to understand the terminology before speaking with a professional. While both renovation and remodel will improve and update your living space, the two types of projects are very different, each with its own set of benefits and considerations. Get to know six key differences that will help you keep the lingo straight—renovation vs. remodel—and nail down the project that best suits your home.
Renovation updates the look and feel of a room—or an entire structure—without changing its intended purpose.
In a renovation, a kitchen remains a kitchen and a bedroom remains a bedroom, but repairs and updates are made. This generally includes such things as painting, installing new flooring, and switching out items like cabinet knobs and faucets. A renovation also includes structural rebuilding. For example, if rotted wood members are discovered, they will be removed and the area (wall, subfloor, or roof) will be rebuilt using new lumber.
During a remodel, the design—and sometimes the structure—is altered.
Remodeling is the process of changing the functionality and the design of an area. It may involve tearing out a wall to expand a bathroom and reconfiguring a kitchen layout so the cabinets, fridge, sink, and range are in different locations. Constructing an addition to your home would also be considered a remodel. Remodeling need not always involve major structural changes, however; it can be something as simple as turning a guest bedroom into a home office. If the purpose of the area has been altered, it’s been remodeled.
Remodeling is often costlier than renovating.
Since remodeling may involve changing the physical structure of a home, it’s often necessary to reconfigure the wiring, plumbing, and ductwork, which makes the project more complex and pricey. More professional labor is usually involved in a remodel, and the material cost is often higher as well, since many remodeling projects involve building new additions. While the final cost comparison depends on the scope of the project and the quality of the materials, because renovations are usually less complex, they’re also easier on the budget.
Renovating may require pulling a permit, but remodeling almost always does.
Permits ensure that proper building codes are followed. Communities set their own rules, but it’s common for a local building authority to require a permit any time a structure is changed, including putting an addition on a home or tearing out and reconfiguring interior walls. Simple renovations, such as painting and installing new carpeting, don’t require permits, but replacing a roof (a renovation project because design and function are not altered) usually does. Reroofing is in a special category, because if a new roof isn’t installed correctly, it could leak and the home’s structure could be damaged, so most communities require permits for reroofing.
Renovating is more DIY-friendly.
If you’ve got the skills, time, and desire to take on a home improvement yourself, consider renovating rather than remodeling. Most communities do not allow unlicensed homeowners to run electrical wiring or install plumbing, but painting, wallpapering, hanging new doors, and installing trim work are all permitted.
Renovating offers a better return on investment (ROI).
Since renovating usually costs less, and because it involves repairing and updating a home’s basic features, homeowners will often see a better ROI on renovation projects than they will on remodeling projects when they sell their house.
You could spend big bucks to add a large three-season room to the back of your house (remodeling), but if your roof leaks and the furnace doesn’t work, buyers will go elsewhere. Remodeling Magazine publishes an annual cost-vs-value analysis for common home improvement projects, and notes that renovation projects, such as replacing an entry door or a garage door, or re-siding a home, will net the homeowner approximately 75%, 98%, and 76% ROI, respectively, when the house sells. A major kitchen remodel, however, will net only about 60% ROI and adding a master suite addition to the home will bring just about 50% ROI.
OCD, Organize Create Design LLC 