Budgeting Tips: Remodeling Home vs. Buying New

Thinking about upgrading your living space in Los Angeles? Whether you are picturing an open-concept kitchen in Malibu, a sleek outdoor living area in the Palisades, or a modern interior in Downey, one question stands out: Is remodeling your current home worth it, or is it better to buy new?

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This guide unpacks the budgeting side of that choice—helping you understand the costs, hidden savings, and lifestyle trade-offs of remodeling a home versus starting fresh elsewhere. So, let’s dive into the dollars and sense of it all.

Remodeling Home: What Are the Real Costs?

When it comes to home remodeling, most people underestimate the costs—and the value it can actually bring. From minor upgrades to full-blown overhauls, costs can range widely depending on your scope, neighborhood, and the finishes you choose.

In Los Angeles, especially areas like Malibu and the Palisades, expect upscale remodels to start at:

• Kitchen remodels: $60,000 – $120,000

• Bathroom renovations: $30,000 – $80,000

• Full home remodels: $250,000+

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It is not just materials and labor. Factor in permits, design services, and sometimes even a place to stay while work is underway, and it can add to the total cost.

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Pro Tip: For high-end finishes or eco-conscious designs, plan to increase your home remodel budget by at least 20%. If you want to go green or tech-smart, then add another 10-15%.

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Still, if you love your location and the structure of your house is good, remodeling your home could be your smartest long-term investment.

Buying a New Home in LA: What Are You Really Paying For?

With no doubt, buying a brand-new home sounds exciting—turnkey, zero dust, no construction noise. However, in places like Palisades or Malibu, you are also paying a premium for that fresh start.

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What is the average cost of buying a new luxury home in these areas?

• Malibu: As of mid‑2025, the median sale price hovers around $4.35 million—with luxury homes often selling for $8 million to $14.5 million or more.

• Palisades: On Realtor.com, there is a median listing price near $4.2 million, and a median sale price around $3.1 million.

• Downey: A more recent update from the Greater Downey Association of Realtors cites the average sales price for Q2 2025 as $1,131,009, though high-end transactions may skew this figure.

Buying new is not just about the price tag on the listing. You will face closing costs, moving trucks, and—more often than not—renovations to make the space truly yours. Also, let us not forget property taxes, which usually jump with higher-value homes. Suddenly, that “easy” move doesn’t feel so easy anymore. Home remodeling, on the other hand, often lets you design your dream space while keeping a tighter rein on the budget.

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If you are still weighing both options, check out our previous blog about full remodel vs. buy guide, where we break down lifestyle factors, benefits, and costs beyond just the numbers.

How to Budget for Remodeling Without the Headache

When it comes to bigger projects, the question of how to budget for remodeling is one of the first things homeowners ask us at Energize Builders. And it’s no surprise—figuring out the numbers can feel overwhelming if you don’t know where to start. The good news? With the right approach, you can create a plan that keeps your project on track and your stress levels low.

Here’s a quick guide on how to budget for a home remodel effectively:

• Set a clear goal: Decide if you are upgrading a kitchen, adding an outdoor space, or planning a full makeover. The more specific you are, the easier it is to budget.

• Get multiple quotes: Compare at least two to three local contractors in Los Angeles to understand realistic pricing.

• Plan for surprises: Always set aside 10–20% of your budget for unexpected costs.

• Prioritize ROI: Kitchens and bathrooms usually deliver the highest return on investment, making them smart starting points.

• Account for permits: Los Angeles regulations can cause delays if you don’t plan for the paperwork early on.

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If you want help designing a remodel budget that fits your property in Malibu, Palisades, or Downey, our team at Energize Builders can walk you through the process step by step. With a clear plan, you will feel confident knowing exactly where your money is going—and how to maximize every dollar.

Budget-Friendly Home Renovation Ideas That Still Impress

Remodeling doesn’t have to break the bank. If you are aiming for high impact without a high price tag, consider these budget-friendly home renovation ideas:

• Update lighting fixtures for a modern touch

• Repaint walls with fresh, trendy tones (think warm neutrals and cool grays)

• Refinish cabinets instead of replacing them

• Add built-in storage for function and form

• Install energy-efficient windows to cut future utility bills

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Each of these minor changes can dramatically elevate your home’s look—without taking a wrecking ball to your wallet.

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Remember: You don’t need to tear your house apart to make it feel brand new. Sometimes, it is the small upgrades that make the biggest impact.

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If you are curious about what that looks like, browse our work portfolio. From Malibu to Downey, our home remodeling Los Angeles projects show how we create luxurious, livable spaces that balance elegance with practicality.

Lifestyle Considerations: Is Remodeling Your Home the Right Fit for You?

Your home is not just a structure—it is a lifestyle. From neighbors you cherish to ocean views you wake up to, location matters.

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So, ask yourself: What does “home” really mean to you? If you are already in a great school district, have a convenient commute, or cannot imagine leaving behind the memories made within those walls, remodeling your home could be the perfect solution. It keeps your roots intact while giving you the upgrades and luxury in the place you already belong.

Home Remodeling Projects That Increase Your Property Value

If you are going to spend big, make it count. Certain home remodeling projects in Los Angeles consistently add value—especially in upscale areas.

Here are some high-ROI ideas:

• Kitchen overhauls with luxury appliances

• Spa-style bathroom renovations

• Outdoor kitchens and entertainment areas

• Adding an ADU (accessory dwelling unit)

• Home office upgrades with built-ins and smart tech

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In hot markets like Malibu and Palisades, these features can make your home stand out—and sell faster, should you decide to move later.

Remodeling Home in Los Angeles: Why It’s a Smart Move

Still debating whether remodeling your home is the right move? Think of it this way—home remodeling projects in Los Angeles are not just about following a trend. It is about making a smart investment in your lifestyle. As property values rise, upgrading your current space often gives you more control and better value than buying new. At Energize Builders, we know how to balance beauty, function, and local requirements to bring your vision to life.

Energize Builders: Make the Move That Moves You

Thinking about remodeling your home in Los Angeles, but not sure where to start? What if you could upgrade your space without leaving Malibu, Downey, or Palisades? At Energize Builders, we have spent over 10 years in the industry helping homeowners create dream homes that fit their lifestyle. As a licensed general contractor for home remodel projects, we know how to turn big ideas into beautiful results. Why settle for a home that no longer works for you?

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Call (310) 963-1567 today for your free consultation, and let’s explore your options.