Remodeling or New Home

By Florida Building Code: When the cost of remodeling exceeds 50% of the house’s market value or the remodeling area exceeds 50% of the house’s total area, the entire house has to comply with the new Building Code
(which will increase the cost of construction substantially)
Construction considerations: If the remodeling work or addition is limited in scope (just a couple of rooms, about 20% of the entire house)
it is worth it to remodel or add to the existing house.
On the other hand, if the remodeling work and/or the new addition is much more extensive,
the homeowner should analyze other options to determine if it makes sense financially.
Even after remodeling an existing house is still old –
most of the existing electrical wiring, plumbing and mechanical systems will stay in place.
By experience and asking some clients after the house has been completed,
we find that many regretted their decision. Most would have preferred a new house,
(comparing SF to SF, remodeling work is typically more expensive than building a new house).
One empiric rule of thumb to help making a choice between remodeling
or a new house is the following: When the cost of remodeling exceeds
about 40% of the house market value, it is better build a new house.