How should you make the decision to renovate or gut rehab your existing home, or if you should tear down your home and start from scratch with new construction? Good builders can make a renovation just as good, if not better, than new construction. The price of completely renovating versus new construction will be about the same, as well. To make the decision to tear down or renovate, you need to think about what kind of benefits, like size or amenities, you will get from both options.