The words “renovate” and “remodel” are often used interchangeably when it comes to real estate, contracting, and interior design. However, for professionals working in one or more of these industries, these terms actually imply two very different things. Basically, the difference between them is that a renovation refers to restoring something to a previous state, while a remodeling refers to creating something new. Remodeling is the process of changing the functionality and design of an area.
It may involve breaking a wall to expand a bathroom and reconfiguring the kitchen layout so that the cabinets, refrigerator, sink, and stove are in different places. Building an addition to your home would also be considered a remodel. However, remodeling doesn't always involve major structural changes; it can be as simple as turning a guest room into a home office. If the purpose of the area has been altered, it has been remodeled.
The terms renovation and remodeling are often used interchangeably. But for housing professionals, they're different. Both involve physical changes to a property, but differ in the cost and types of construction involved. Remodeling Magazine publishes an annual cost-to-value analysis of common home improvement projects and notes that renovation projects, such as replacing an entrance door or garage door, or changing the coating of a house, will bring the homeowner approximately 75 percent, 98 percent and 76 percent of their ROI, respectively, when the house is sold.
Because renovation usually costs less and because it involves repairing and updating the basic features of a home, homeowners often get a better ROI on renovation projects than on remodeling projects when they sell their home.
