Essentially, the difference between them is that a renovation refers to the restoration of something to a previous state, while a remodeling refers to the creation of something new. Remodeling is the process of changing the functionality and design of an area. It may involve tearing off a wall to expand a bathroom and reconfiguring the kitchen layout so that cabinets, refrigerator, sink and stove are in different locations. Building an addition to your home would also be considered a remodel.
However, remodeling doesn't always have to involve major structural changes; it can be something as simple as converting a guest room into a home office. If the purpose of the area has been modified, it has been remodeled. Remodeling involves changing an entire room or building. Remodeling tends to be a much more complex process than restoration or renovation, as it involves making changes to the structure of a building.
Renovation and remodeling are the two most common words used in construction, real estate, interior design and contracting. However, there is a significant difference between them. Renovating means “reviving or restoring something to a previous state through improvements: repainting, repainting, restoring. Remodeling, on the other hand, is restructuring the state of something, “essentially redoing”.
While a remodel is changing the shape of something (adding a new shower to an existing bathroom), the renovation is more focused on restoring something old to good condition (fixing a creaking floor, for example, or assuming a kitchen renovation cost). Since renovation usually costs less, and because it involves repairing and updating the basic features of a home, homeowners will often see a better ROI on renovation projects than on remodeling projects when they sell their home.
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