Rebuilding or Remodeling a House: Which is Cheaper?

The question of whether to renovate or demolish a house is worth exploring, as the difference in costs can be quite substantial. Home renovation is a personalized activity, unique to the individual home that requires a lot of time and labor. Building a new house can be done quickly, using modern systems and materials that maximize efficiency and save time. When should you consider REBUILDING instead of remodeling? There is a common misconception that remodeling a home is less expensive, which is true if you already own the home.

Rebuilding all or part of a home to meet Department of Energy's suggested guidelines, including installing energy-efficient windows, insulation, and appliances, may be the most cost-effective solution, especially if your home is over 75 years old. As remodeling requires less outside work, there are fewer permits, regulations, and inspections that your home contractor will have to follow or comply with, speeding up your project schedule. If the cost of remodeling your home exceeds the resale value, or if there are lots to build in your ideal neighborhood, rebuilding may be the best option. If you live in a historic home with lots of original details such as ceiling moldings, hardwood floors and antique fixtures, a remodel can allow you to keep the character of your home intact.

And it doesn't always make financial sense to look for a stylish kitchen remodel, especially if the budget for the remodel approaches or exceeds the current value of your home. When deciding between rebuilding or remodeling your house, it's important to consider all factors involved. The cost of materials and labor should be weighed against the potential resale value of the property. Additionally, it's important to consider how long it will take to complete the project and whether or not you have the necessary permits and regulations in place.

Finally, if you live in a historic home with lots of original details such as ceiling moldings, hardwood floors and antique fixtures, it may be worth considering a remodel instead of rebuilding.