The words “renovate” and “remodel” are often used interchangeably when it comes to real estate, contracting, and interior design. In a renovation, a kitchen is still a kitchen and a bedroom is still a bedroom, but repairs and updates are made. This usually includes things like painting, installing new floors, and changing items such as cabinet knobs and faucets. For example, if rotten pieces of wood are discovered, the area (wall, subfloor, or ceiling) will be removed and rebuilt with new wood.
The magazine Remodeling publishes an annual analysis of the cost in relation to the value of common home improvement projects and notes that renovation projects, such as replacing an entrance door or garage door, or changing the siding of a house, will generate an ROI for the owner of approximately 75 percent, 98 percent and 76 percent, 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 see a better ROI on renovation projects than on remodeling projects when they sell their home.
