After a question, it sounds directly from an HGTV show: Should you commit yourself to a complete renovation or start fresh with a new building? It really depends on your budget and you want to make a little number of numbers before making the final decision. While the idea of ”camping” in your own home while a larger renovation is completed, you can automatically choose a new build, you may want to rethink again. In the most Scenarios, It is usually more expensive to build a house. The average costs for the construction of a new family home in 2025 are $ 323,026 based on numbers from HomeAdvisor.
If you plan to renovate a house, Nerdwallet Recommends the budgeting between 15 and 150 US dollars per quadrat foot, depending on factors such as the scope, location of the project and the quality of the surfaces you have chosen. Based on this area, the renovation of a 2,000 square meter house could cost between $ 30,000 and $ 300,000.
In advance, more about what you should think about if you decide whether you want to renovate or build again.
Wild cards budget
Renovation work can cut out many of the big ticket objects required for a new building, e.g. Nested home plans. “Apart from that, unforeseen objects can appear during a renovation that unexpectedly increase the costs,” she says.
As soon as the walls are open, hidden problems such as outdated sanitary or structural defects can arise that quickly increase costs, says Miltiadis ChestnutA real estate agent who specializes in the Miami and Miami Beach and Director of Luxury Sales markets at Compass.
Further financial cards can bring the house to current codes and the approval fees. Although the largest cost driver is the unknown in renovation work, those who go the new construction route often pay more for upgrades and adjustments.
“The temptation to spend” only a little more “for better surfaces adds up quickly, especially if they are used in all parts of the house,” he says.
Compare schedules
A covenant construction usually takes longer than a renovation. The claim and approval process, especially for projects with full pillows, can significantly delay the start of construction, says Kastanis. Renovation work, on the other hand, can often be done gradually, and some permits enable more flexibility to start projects earlier.
Atkins notes that the renovation work in their experience often takes just as time before they have completed the new building. Although they usually contain fewer square materials, the timeline is pushed out by the complexity of the building and the unforeseen challenges that occur frequently.
Finance considerations
For those who build new building loans, construction loans usually have higher interest rates than a traditional 15- or 30-year mortgage. However, some construction loans can be converted into a mortgage after completing the house.
Homeowners who bought houses to interest rates of less than 3 percent in 2020 and 2021 can also be motivated to renovate in today's higher interest rate environment instead of buying today's purchase.
“We see a lot of people who stay in their houses and for this reason to look at a new place,” says Zack Lazo, based in Maryland, based in Maryland Cornerstone conversion. “If you locked a price about five years ago, you will get the advantage of more space while you don't have to worry about a higher interest rate.”
The planning of home owners who are planning renovations should consider speaking to a financial planner in order to determine the best financing strategy. Many choose to finance upgrades through an equity loan or a credit line that are options that may be offered tax -deductible interest When using for qualified house improvements.
Advantages and disadvantages of renovations compared to the new building
By renovating, you can preserve and improve the character of an older house with the characteristics that modern builds are often missing, says Kastanis.
“Many buyers appreciate the warmth and uniqueness that is associated with original architectural details,” he says.
However, renovation work has restrictions: You cannot usually improve the amount, and additions can feel incoherently from the original structure.
The new building offers the advantage of the building for current codes, which often leads to improved energy efficiency, lower insurance costs and a house that requires less immediate maintenance, says Kastanis.
The disadvantage is that the claim and the approval process can be lengthy and it is easy to cross the budget with upgrades and changes during the build.
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Brittany Anas is a former newspaper reporter (The Denver PostPresent Boulder Daily Camera) Freelance writer. Before she hit alone, she reported almost every clock – from university formation to crimes. Now she writes about food, cocktails, travel and lifestyle topics for Men's JournalPresent House beautifulPresent ForbesPresent EasierPresent ShondalandPresent viabilityHearst newspapers, Tripsavvy and more. In her free time, she trains basketball, crashes Pools and loves to hang out with her rude but calm Boston Terrier, who never has the memo that has referred to the breed as “America's gentleman”.