Is It Better To Remodel Or Build A Custom Home?
- PGC Building + Design
- Jul 14
- 13 min read
Updated: Oct 27
If you’ve found yourself thinking about a home upgrade recently you may be wondering if it is better to remodel or build a custom home to create the home you're dreaming about. Maybe you’re thinking about updates to make aging in place easier, or you’d like a more modern living space. You might have recently expanded your family and want more space or a more functional layout than your current home has.
There are endless reasons you may be thinking about a remodel or building a custom home and there are often endless possibilities to use either to achieve your goals. Whether remodeling or building a custom home is right for you is dependent on your unique situation - your current and future goals for your home and your personal preferences.
Here we’ll cover some of the top benefits of a remodel and building a custom home as well as the top factors to consider when making your decision and reasons you might choose one method over the other when updating your home.
Don't need all the details? Jump to the Quick Comparison
Remodel Versus A Custom Home
Before we get into all the details to help you determine if a remodel or building a custom home is right for you, let’s define what we mean by remodeling or building a custom home.
Building A Custom Home
A custom home build means you are designing a new home completely from scratch. You define the layout, design, location on the property, size, and more. When building a custom home you’ll work with a team of professionals, an architect, designer, and custom home builder to help you build your new home.
Remodeling
A home remodel means updating an existing structure, leaving some portion of the current home intact. Remodeling projects can range dramatically in size and scope, from larger projects like a home addition or a full gut rehab of the interior to smaller projects like remodeling a single bathroom.
As you consider whether remodeling or building a custom home is right for you, it’s important to understand the benefits of each option.
Benefits Of Remodeling Versus Building A Custom Home
One of the biggest benefits of remodeling is the ability to preserve the sentimental value & character of the current home. If you’ve lived in the home you are remodeling for a long period of time you may have family memories in the home that you simply can’t take with you when you build a new custom home. For some, it’s important to preserve the character of the home, perhaps its historical nature or the architectural style. This isn’t possible to do when you build a custom home; however, it is possible when you choose to remodel.
Another benefit of remodeling versus building a custom home is cost. On average, remodeling will cost less than building a custom home because you are already working with an existing structure. You don’t need a full foundation. You don’t need to factor in site preparation costs. Many parts of the existing home will be used, and therefore reduce the cost when you remodel versus building an entirely new home.
In the same vein, when you remodel, it’s possible to control your costs over time if you opt to break up the work you’d like done into smaller projects rather than do everything all at once. You can choose to upgrade your kitchen first, then remodel your bathrooms, and finally put on the addition with the second junior suite, rather than complete (and pay for) all these projects at once. When making this decision, your remodel contractor will be able to provide you with insight into the most cost-effective project schedule.
Timelines are an important factor to consider and remodeling projects typically take less time than custom home builds. Depending on the size and scope of your remodel, your project may take a few weeks or months versus the many months or years-long process of building a custom home.
One last benefit to consider in the home remodel or custom home build debate is that when remodeling there is a possibility of living in the home while it is being remodeled. This will depend on your specific project and you may need to make alternate living arrangements for a portion of the time; however, when you build a custom home, you will be living elsewhere until your custom home is complete.
Recap: Benefits of Remodeling
You can preserve sentimental value & the character of the home
Typically lower cost than building a custom home (depending on the extent of your renovations)
You can control your budget by updating over time instead of all at once
Typically have a shorter timeline than a full custom build
Able to live in the home during construction
Considerations For Remodeling
In addition to the benefits of remodeling, there are a few other things you’ll want to consider when weighing your options to remodel or build a custom home.
When you remodel there is a larger degree of uncertainty in the project work that isn’t there when you build a new home. As an example, your contractor may uncover rotting wood that needs to be replaced - adding to your initial project cost. Or, you may learn that certain aspects of your home need to be redone in order to be brought up to current building codes. When you remodel there is a greater risk of uncovering more work that needs to be done than originally thought and this can lead to unexpected costs.
Also related to the cost of remodeling is the cost vs value of the upgrades you are making. If you plan to sell your home in the future, the cost vs value you receive for remodels is often lower than building a custom home. There are certain renovation projects which have greater value, but on average the new home will be a better investment in this regard.
If you are interested in cost vs value specifics, the Journal of Light Construction has a cost vs value breakdown by project type for remodeling projects in Bend, Oregon that may be of interest to you.
If you plan to live in the home during the remodel, you’ll want to factor in that there will be disruptions to your daily life during the remodel project. The scope of your remodel will determine exactly how much of a disruption, but it will be there in some form regardless of the project.
With a remodel you’ll also want to be aware that when the project is complete, you’ll have areas of your home that will still require more maintenance. Not everything will be brand new, so you’ll want to account for the fact that you’ll have higher maintenance costs versus building a new custom home.
One final thought on remodeling versus building a custom home is that a remodel can be less personal. You will be working within the framework of an already built home, so there will be things you simply can’t change; whereas, when you build a custom home, you’ll have full control to personalize every aspect of your home.
Benefits Of Building A Custom Home Vs Remodeling
One of the greatest benefits of building a custom home is the complete personalization you have. When you build a custom home, you’ll choose the architectural style, the layout, the size and style of your windows, the interior finishes and much more. Everything is truly customized to your style and preferences.
Similarly, with a custom home you’ll also have the ability to build and choose the location of your home on your lot. This means you can orient your home for better natural light or to take advantage of the views. You can also design with increased privacy in mind. When you are remodeling, the location of the home on the lot is already set and changing it may cost more than building a new home would.
Another benefit of building a custom home is that you’ll have greater ability to future proof your home based on your goals. If you don’t plan to move and want to build a home where you will eventually age in place or you expect to have older relatives living with you, you can design for these eventualities when you build a custom home. As another benefit, a custom home typically has a higher resale value than remodeling does. So if your future plans are to sell your home, you can design and build with this in mind.
When it comes to building with sustainable and environmentally friendly materials and methods, this is often easier to achieve when you build a custom home versus remodeling. Because you don’t need to worry about compatibility with the existing structure and materials, the blank canvas of building a new home means it’s easier to incorporate environmentally friendly practices.
In the long run, building a custom home will also have lower maintenance costs, because everything is new - not just the remodeled parts of your home. Additionally, you’ll have a warranty that covers your entire home.
One last benefit of building a custom home versus remodeling is that you won't have an interruption to your daily life because you won’t be living in your home while it is under construction. You’ll be living elsewhere, separate from the construction until your new home is complete.
Recap: Benefits of Building a Custom Home
Complete personalization
Enhanced ability to future-proof based on your goals
Can design a home to suit your lot
Higher resale value
Easier to use environmentally friendly materials and methods
No interruption to daily life due to construction
Lower maintenance costs (everything is under warranty)
For more detailed information on building a custom home, see our article on the pros and cons of building a custom home in Central Oregon.
Considerations For A Custom Home
Two of the greatest considerations for building a custom home versus remodeling are time and cost. In general, a custom home will take longer to complete than remodeling. Not only will you be building from scratch, but you’ll also need to factor in the extended time it takes to design and plan as well as site preparation, and the time it takes for additional permitting and approvals.
Similarly, these factors play a role in the higher cost of building a custom home versus remodeling an existing home. There are additional costs for design, permits and impact fees, additional construction and building material costs as well as the cost for site preparation and new utility hookups. While there can be fewer surprises in cost when building a custom home, you can count on the initial cost estimates being higher than a remodel.
As we mentioned earlier, another consideration when determining whether to remodel or build a custom home is the fact that you’ll need to have alternative living arrangements when you build a custom home. This also impacts the cost as you’ll be paying to live somewhere else while you are also paying for the construction of your new home. This is compared with a remodel where you may be able to live in the home while it is being remodeled so you save on the additional living expenses.
Leaning toward a custom home? Learn more about how to find the best custom home builder.
Key Considerations To Decide If Remodeling Or Building A Custom Home Is Right For You
Ultimately, the decision to remodel or build a custom home is a highly personal decision based on a variety of factors. These are a few of the key items to consider to help you decide if remodeling or building a custom home is the right choice for you.
Location
If you are set on living in a specific location, this may dictate whether a remodel or building a custom home is right for you. For example, certain locations may be better suited for a remodel vs building a new home and vice versa.
As an example, if you are living in a historic home local regulations may prevent the home from being knocked down and rebuilt, so a remodel is the best choice if you don’t want to move from your current location.
Another example when building a custom home is the right choice, is if you’ve found a location that does not yet have a home on it. Perhaps you’ve found an undeveloped parcel of land with mountain views you love. In this case, building a custom home is your best option to be able to live in the location you’d like.
Timeframe
Typically, building a custom home will take longer than remodeling. This is not always the case, but it can be used as a rule of thumb when making your decision to remodel or build a custom home.
Convenience
When you build a custom home, you won’t be able to live on your property until the home has been built and has a certificate of occupancy. That may mean many months of living in a different location while your custom home is under construction.
If you decide to remodel your home, oftentimes you can continue living in your current residence during the remodeling process. This isn’t always the case depending on your specific remodel; however, you can also plan to minimize your time spent living elsewhere if that is a goal for you during your project.
History / Emotional Attachment
The personal history you have in a home is often a reason people choose to remain in the same home with a remodel versus building a custom home. You may have memories in your home that you wish to preserve. Your home may also be a family home with generations of history that you want to continue.
There are also cases, like in our example above, where your home may be historic for another reason and you’d like to or need to preserve the history of the home.
These are important factors to consider when deciding whether remodeling or building a home is right for you and your family.
Condition Of Current Home
Another key factor to consider is the condition of your current home. If there are major issues with the integrity of your current home, you may save considerable money building a new home versus remodeling your current home.
Items that are often red flags that can indicate greater cost if you are attempting to remodel your home are foundational issues, structural damage, and major plumbing or electrical issues.
If your current home is structurally sound, a remodel may be the lower-cost option and well worth considering.
Ability / Regulatory Hurdles
There are certain aspects out of your control that may make the decision to remodel or build a home an easy one for you. This is the case when it comes to regulatory hurdles you may encounter.
In our earlier example, living in a historic home or one on the national register of historic places may simply mean the remodel you’d like to make isn’t allowed. In other cases, you may find that there are HOA restrictions or zoning requirements that automatically rule out the updates you’d like to make.
When you have an older home, you may find that your home’s entire plumbing system needs to be redone to meet current code requirements when you remodel.
These types of regulatory requirements can cause the cost of remodeling to go up significantly, perhaps enough to make it more cost-effective to build a new custom home versus remodeling.
Cost
Cost is always an important consideration. For many, the lower-cost option may be the likely choice. In many cases remodeling will be the lower cost option; however, remodeling, especially an older home, can come with more unexpected costs - i.e. the need to redo the entire plumbing system to meet code.
When building a custom home, as long as you have properly planned, you can avoid many unexpected costs that may arise. This can make building a custom home more attractive even if the initial cost is higher than remodeling.
The best way to determine the difference in cost between these two options is to talk with a remodel contractor and home builder to get actual estimates for your options.
If you are in Central Oregon and considering your options to build a custom home or remodel, our team at PGC Building + Design would love to talk with you to provide insight through a cost estimate based on your goals. Get in touch with us.
Personal Goals
Perhaps the most important consideration when deciding to remodel or build a custom home is your personal goals. Consider what you want in your home. Are there any non-negotiables for you? Is it important to you to remain in the same location? What is your top priority? How extensive are the changes that you’d like to make? Is it important to make your home more environmentally friendly? Are you trying to modernize your home? Do you want more space for family or guests? Are you planning to move in the future or remain in the same location for many years? What are your financial goals?
Thinking about and being clear on your personal goals will make the decision to remodel or build a custom home much easier. Your goals can help you as you interview remodel contractors or choose the best custom home builder to help you with your project. Having a clear view of your goals will also help you compare your options as you weigh the factors that are most important to you.
Quick Comparison of Key Considerations
When To Remodel Or Build A Custom Home
A Remodel May Be Best When:
You love your current location (schools, commute, neighbors).
The foundation and structure of the home are in good shape.
You want to preserve sentimental value (family memories or history).
You have a tight budget and want to upgrade over time.
You're okay with disruption to daily life during construction.
You only need moderate changes (kitchen, bathrooms, adding a room).
You want to retain the character of the home.
A Custom Home Build May Be Best When:
You want complete control over design (floor plan, finishes, energy efficiency).
Your current home has major structural issues (foundation, wiring, roof).
You can't achieve what you want by remodeling.
You’re ready for a fresh start in a new or better location.
You have the time and budget to handle a longer project.
You prefer lower maintenance living.
Considering a remodel or building a custom home in Central Oregon? We are here to help. If you are considering updates to your existing home with a remodel or building a custom home, we’d love to talk with you about your project. Our experienced team can provide further insight into the pros and cons of each option to help you determine the right choice for your unique situation. Contact us today to talk about your project.
Comments