1. Identify the factors that will shape your decision. Deciding whether to restore or rehabilitate your house, and to what extent, involves understanding its history; its architecture; and the present condition of its materials, finishes, and systems. You should also consider your household’s lifestyle and what personal needs the finished house must accommodate. More broadly, local historic district designations, local building codes, property insurance, and other regulatory or financial considerations will impact the path you take.
2. Review the house’s history. Who lived in the house and when? Did important events occur there? Did either (or both) scenarios have historical significance? If so, you could consider restoring the house to that period to help interpret its history.
3. Know what “restore” means. To restore a house means to return its interior and exterior appearance to a particular date or time period. Strict restorations—ones that eliminate everything not present during the period chosen—are rare for homes, with most owners opting to maintain modern systems (plumbing, anyone?) and sympathetically designed changes, such as later additions, that add to the house’s history.
4. Know what “rehabilitate” means. To rehabilitate a house means to make it useful and functional for contemporary living while preserving important historic and architectural features. For example, a rehabilitated old house would always include modern electrical, mechanical, and plumbing systems, a modern kitchen, and other attributes typical of present-day homes.
5. Choose your approach. The major difference between restoring and rehabilitating is to either exactly duplicate a particular period or concentrate on preserving a sense of the changes that have occurred over time. For example, if an Italianate-style house had lost its wood eave brackets, a restoration project would duplicate them in wood as they originally appeared, while a rehab project would add new brackets of a compatible design in an appropriate substitute material (ex. fiberglass).
This article was taken from: https://savingplaces.org/stories/10-on-tuesday-restore-vs-rehabilitate-which-is-right-for-your-historic-house#.WqvWXZNuYcg