The decision of renovating an existing house versus building one from scratch is one many homeowners across South Florida deal with. Financially speaking, this seems like a no-brainer. Isn’t renovation always the cheaper option? It turns out that certain factors can actually make it more cost-effective to build from scratch. 

First off, it’s important to note that we’re not talking about a minor upgrade, like remodeling your kitchen and bathroom. We’re talking about a full-scale, gut renovation. That means creating an entirely new home within an existing structure, allowing for a total redesign of the layout and systems. 

With that in mind, here are a few widely overlooked factors that would make new construction more cost-effective than full-scale renovation:

Older Homes Require Repairs

As charming as they may be, older homes tend to come with lots of costly repairs. When we are talking about renovations with someone, one of the things we always mention is we don’t fully know what we’re going to find behind the walls until we open them up. While we have yet to find pirate treasure, we have found faulty electrical work, corroded plumbing, termite damage and many other situations that need to be remedied but are often not thought of when building out a renovation budget. 

Once you’ve factored these repairs into the cost of your renovation, your total budget could easily exceed the cost of building a new home with brand new plumbing and electrical systems. 

The Price of Quality Materials 

Another factor is the materials used in the renovation. Choosing high-end finishes, appliances, and fixtures could heavily increase the total cost. Regardless of whether you decide to renovate or build from the ground up, it’s a good idea to determine where you can save and where you can splurge in your new home.

Design Changes

When you’re in the construction phase of a home renovation or new build, the two scariest words are ‘change order.’ 

When you build a home from scratch, you know exactly what you’re building from start to finish. With renovations, on the other hand, there’s bound to be surprises during the construction phase which will require change orders, increasing the cost and timeframe of the project. We always recommend keeping a budget for change orders with renovations that are not necessary with new builds. 

Tax Breaks

A major advantage of new construction is the ability to choose whatever design elements you want, as opposed to being limited to the logistics of an existing structure. This allows you to maximize tax credits by choosing design elements with tax credits in mind. 

For example, a homeowner could take further advantage of energy efficient tax credits by building a new home with impact windows, solar panels, insulation, and certain roofing materials. Not only will you get tax credits for using so many energy efficient materials, but your energy bill will also be lower for years to come. 

If you’re debating whether you should renovate or build your dream home from scratch, the Debowsky Design Group is here to help. When you get an accurate picture of each option’s cost, you can determine a realistic budget and get the real planning started. Let’s work together, give us a call.