“Most clients don’t want to hear those words,” says Paul Irwin, design director with Landis Construction, in the Washington, D.C., area, “but it really needs to be considered on major remodels. “In one case, for example, plans for a 1,300-square-foot addition revealed that the house’s existing foundation wasn’t up to code and would have to be replaced—a $30,000 proposition.

After crunching the numbers, the owners concluded that it would cost as much to update the house, a former summer cottage, as it would reproduce it new. “For a relatively small additional cost,” says the owner, “we get all the benefits of new construction while preserving the character and feel of our old house.”

Increase Efficiency, Not Size

If you can reorganize and equip your kitchen for maximum utility, you may not need to blow out the walls to gain square footage. Start by replacing space-hogging shelves with cabinet-height pullout drawers 8 inches wide, containing racks for canned goods and other items.

“You’re getting three or more horizontal planes where you might otherwise get only one,” says Louis Smith Jr., an architect with Meier Group, in Ann Arbor, Michigan.

You could easily shell out a few thousand to outfit cabinets with upgrades like dividers, pull-out pot trays, and lazy Susans, but you’ll save many times that amount by skipping the addition you thought you needed.

• Cost to expand kitchen by 200 square feet: $48,000 to $95,000
• Cost of super-efficient, custom-designed cabinets: $35,000
• Saved: Up to $60,000

Bring in Natural Light Without Adding Windows

Before cutting a big hole in the side of your house and rearranging the framing, consider less invasive—and less expensive—ways of capturing light.

To brighten up a windowless bath or hallway, for instance, you can install a “light tube,” which slips between roof rafters and funnels sunshine down into the living space.

• Cost to add a double-pane insulated window: $1,500
• Cost for a light tube: $500
• Saved: $1,000

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