When we start looking for our dream homes, it’s tempting to try to find one that fits all of our criteria right off the bat. And while everybody’s personal taste varies, there are a few things we all tend to want: modern kitchen appliances and bathroom fixtures, lots of natural light, and plenty of storage space. But the homes that are actually out there and in our budgets? Those are fewer and farther between than a lot of us realize! That doesn’t mean we have to settle, though. What it does mean? We need to bust out our DIY, home renovation powers. As this recent, incredible smaller home renovation from House & Home demonstrates, any house can be transformed into the home of your dreams if you’re willing to put in the effort. Just take a look at what the homeowners had to work with:

You can see clearly— it’s a nice-enough home, for sure, but also super-old-fashioned, with peeling, faded wall-paper in outdated designs; a cramped feel, thanks to too many rooms packed into a tiny footprint; beat-up flooring that not only contrasts from room to room, but is peeling up; and just a general, worn-down feel.

Look at it now.

Yes, that’s the same house! Really! How incredible is that transformation? The new open floor plan is accentuated by having fewer pieces of larger furniture, making a spare look feel totally comfortable while still being stylish. The entryway . . .

. . . got extended through to the porch, adding tons of storage space without encroaching on the living area. The dining room . . .

. . . is now part of the main living area, making both feel much more spacious and allowing for lots of fun, comfortable entertaining! Plus, how much better does it look without the wallpaper?! Even such a simple, cosmetic change makes a big difference, like we see in the kitchen . . .

. . . where getting rid of that overwhelmingly blue look makes it feel instantly more modern. The same type of change happens in the bathroom . . .

. . . which is now a space worthy of spa-like self-care and relaxation. Every room features a calming white color palette, featuring lots of natural materials like light wood and concrete.

Color comes in carefully chosen artwork that speaks to the homeowners, showcasing personality without adding too much to overwhelm the sense of calm.

Even the basement feels light and airy, thanks to a really big window well that lets in tons of natural light. There’s also a ton of storage down there!

There are also lots of fun, unique details throughout, like an asymmetrical back door in the kitchen.

What a gorgeous renovation! It doesn’t look or feel like the same home at all!

I’m feeling ready to move in myself, looking at these photos.

Well, I’m certainly feeling inspired. How about you? Watch the full tour below for inspiration, and take a second look at that older home you passed up in your new house search. The possibilities are so much than we ever imagined.