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While the terms renovation and remodel are sometimes used interchangeably, there are significant differences. A renovation updates or restores features in a home without making significant structural changes, leaving existing layouts intact. Conversely, a remodel often involves structural changes that dramatically alter layouts, like removing walls to create an open kitchen.

Open floor plans can come with drawbacks—mainly the lack of privacy and noise dampening. Walls act as an important barrier for traveling sounds, meaning in an open floor plan you could hear your dishwasher running while sitting in your living room. Storage limitations and separation of activities (for example, keeping the kid’s playroom away from the dining room) are other reasons some homeowners are opting out of an open floor plan.

When deciding what to renovate first when remodeling a house on a budget, think about your home’s most pressing need. If you have an old kitchen that isn’t functional, you may want to start there. If you need extra living space for your growing family immediately, consider remodeling the basement first. Learning how to prioritize home improvement projects can help you stick to your budget while making improvements that give you the biggest immediate benefit.

Adding a mudroom is one of the most budget-friendly home additions compared to other projects, costing between $8,000 and $16,000 on average. Not only is the room often quite small, but it also requires minimal fixtures or wiring to make the room practical. The most costly features include a weatherproof floor and an exterior door.