Should You Renovate or Buy a New Home in Winnetka?

In today’s market, the decision often comes down to time, final costs, and what the end result will be.

• Renovating gives you control over the final project.  You can creat exactly what you want.   It can offer lower property tax assessment advantages—but renovations costs have increased significantly and timelines are less predictable
• Buying new offers convenience and immediate livability—but comes at a premium price and higher assessed value

Most buyers are weighing customization vs. simplicity.

Renovation costs on the North Shore have risen sharply over the past few years.

Typical realities today:

• Construction costs are significantly higher than they were pre-2020
• Labor is tighter, which can impact timelines
• High-end finishes and materials have increased in cost

Rough cost ranges (very general):

• Light renovation: $150–$250 per sq ft for minimal work
• Mid-level renovation: $250–$400 per sq ft
• High-end / full gut: $400–$1200+ per sq ft- Prices in Winnetka will be closer to this range

(These ranges vary widely depending on scope, home type, and finishes.)

Pros of renovating:

• Ability to customize exactly what you want- 
• Opportunity to buy in a better location at a lower entry price
• Potential to phase work over time

Cons of renovating:

• Costs can escalate quickly
• Challenges of finding professional help
• Longer and sometimes unpredictable timelines
• Requires decision-making and oversight

The Property Tax Advantage 

One important factor many buyers don’t initially consider:

Buying a home at a lower price point that needs work can result in a lower assessed value, especially compared to buying a fully renovated or new construction home.

While renovations can eventually impact assessments, there is often a period where:

• Your purchase price (lower) influences your assessment
• Your property taxes may be lower relative to fully renovated homes

This can make a meaningful difference in long-term carrying costs.

Buying New or Fully Renovated

What you get:

• Move-in ready condition
• Modern layouts and finishes
• No immediate projects or disruption
• Controlled cost

What to expect:

• Higher purchase price
• Higher assessed value (and typically higher property taxes)
• Less flexibility to customize

For many buyers, the appeal is simplicity—you can settle in immediately without the complexity of a project.

The Trade-Off Most Buyers Face

In Winnetka, this decision often comes down to:

• Location vs. condition
• Time vs. control
• Upfront cost vs. long-term value

Some buyers prefer:

• Buying a home that needs work in a prime location and renovating over time

Others prefer:

• Paying a premium for a finished home and avoiding the process entirely

My Perspective (After 20+ Years in This Market)

What I see most often is that buyers underestimate two things:

1. The true cost of renovation today
2. The time and decision-making involved

At the same time, many buyers overlook the financial upside of buying a home with potential and the ability to grow wealth through appreciation at a lower price point.

How to Decide

A few questions that help clarify the right path:

• Do you have the time and interest to manage a renovation?
• Do you love a creative project or do you hate making these decisions?
• How important is move-in ready condition?
• Would you rather invest in location or finishes?
• Are you comfortable with some uncertainty in cost and timing?

A Practical Approach

Some buyers take a middle path:

• Purchase a home that is livable but not fully updated
• Make targeted improvements over time

This can balance cost, flexibility, and livability.

Want to Talk Through the Options?

Every property—and every renovation—looks different in this market.

If you’re weighing whether to renovate or buy new, I’m happy to walk through real examples and current opportunities so you can make a more informed decision.