Renovation vs. Remodel: What’s the Difference?

While it may seem harmless to use the terms “renovation” and “remodeling” interchangeably, the distinction between the two can make a big difference when communicating the scope of your project to potential contractors. Many DIYers and professionals alike tend to mix up terms like “renovating,” “remodeling,” and even “flipping” when discussing their home improvement projects. However, the difference between a renovation and a remodel is more significant than it seems.

In simple terms, remodeling involves more extensive changes than renovating. But what truly separates these two concepts? This guide will break down the differences between renovation and remodeling, along with which approach might be the best fit for your home project.

Renovation vs. Remodel—What’s the Difference?

To put it plainly, renovation involves updating an existing space to make it look and feel new, while remodeling involves transforming the space entirely, often creating something new out of the old. The key distinction lies in your project’s goal. If you’re merely refreshing your space by updating finishes and fixtures, you’re renovating. However, if you’re making major changes like removing walls, reconfiguring floor plans, or adding new rooms, you’re remodeling.

The Renovation Process

Renovation is about updating a home’s appearance without altering its existing structure or layout. If you’ve purchased a home because you love its floor plan but find the outdated wallpaper unbearable, you’re looking at a renovation project.

What Is Renovating?

Renovation refers to refreshing or restoring elements of a home to a like-new condition. It typically involves tasks that are more DIY-friendly than remodeling, as many renovation jobs—like painting, replacing flooring, updating cabinetry, or swapping light fixtures—can be handled by novice DIYers. Remodeling tasks, on the other hand, like digging footings, reframing walls, or rerouting plumbing and electrical systems, are typically beyond most DIY skill sets.

Additionally, renovations often don’t require permits, depending on local building codes, so they may not necessitate hiring a contractor. However, some updates—like replacing laminate with tile—may require structural changes, such as reinforcing the subfloor to support the added weight of the tile.

Examples of Renovation Tasks:

• Refinishing floors
• Painting
• Refacing cabinetry
• Swapping light fixtures
• Updating plumbing fixtures
• Changing door hardware
• Adding trim

The Remodel Process

Remodeling, on the other hand, involves major changes that modify a home’s structure or layout. If your project includes expanding your kitchen, adding a new bathroom, or constructing a sunroom, you’re remodeling—not renovating.

Remodeling projects often include significant infrastructure changes, such as relocating electrical wiring, redoing plumbing, or adding systems like central air conditioning. These tasks typically require permits and may involve more complex approval processes, especially in historical properties.

What Is Remodeling?

Remodeling entails making significant structural or functional changes to a space. This might involve tearing down walls, reworking floor plans, or completely redesigning an area.

Examples of Remodel Tasks:

• Removing walls
• Changing floor plans
• Installing central AC
• Building additions
• Finishing a basement
• Adding a second story
• Building a deck or patio
• Creating a bedroom suite

Renovation vs. Remodel: Cost and Value

Generally speaking, renovations tend to be less expensive than remodels. For instance, refacing cabinets and updating plumbing fixtures will cost much less than making structural changes like tearing down walls or adding support beams. Additionally, once you’ve made structural changes, you’ll still need to invest in new finishes and fixtures, which means you’re essentially paying for both a remodel and a renovation.

Renovations are also easier to budget for since remodeling projects often involve hidden costs. For example, removing a wall between the kitchen and dining room to open up the floor plan might seem like a simple task, but the wall could hide electrical wires, water lines, and ductwork that will need to be rerouted. Furthermore, if the wall is load-bearing, it will need to be replaced by an expensive support beam.

Renovations often provide a higher return on investment (ROI) because they tend to be less costly upfront. A freshly renovated home is more likely to attract buyers, offering the home an updated, move-in-ready appeal. Remodels, on the other hand, can sometimes have lower ROI, particularly if the changes involve larger expansions or structural alterations that may not always recoup their cost when it’s time to sell.

When looking at homes for purchase, it’s important to watch out for poorly done renovations. Some property flippers make cosmetic updates to sell quickly without addressing the home’s underlying issues. Be sure to hire a home inspector who can thoroughly evaluate the house before making a commitment.

Renovation vs. Remodel—The Bottom Line

If your goal is to maximize your investment, it’s important to know that not all updates will increase your home’s value. According to national averages, only a small percentage of home improvement projects recoup 100% or more of the initial cost. Several factors influence ROI, including:

• Total investment
• Location
• Local real estate market
• Project size and scope

One way to maximize ROI is to tackle more DIY-friendly renovations rather than complex remodels, which often require a contractor. DIY renovations are more cost-effective and typically offer a higher ROI than remodeling projects.