Key Takeaways
- Gut renovation is warranted when selective renovation exceeds 60-70% of gut cost or when layout changes are fundamental.
- Planning costs of $15,000-$40,000 (architecture, engineering, MEP design, permits) are essential and non-negotiable.
- Two-phase budgeting (demolition first, then re-estimate reconstruction) reduces contingency needs and improves accuracy.
- Gut renovations at $100-$200/SF approach new construction costs ($150-$350/SF)—evaluate the break-even carefully.
This track contains subscriber-only lessons
Explore free tracks in this area of study, or subscribe for full access.
Browse available tracks"Gut Rehabs, Historic Reuse & Advanced Renovation Finance" is a Pro track
Upgrade to access all lessons in this track and the entire curriculum.
Test Your Knowledge
1.When is a gut renovation typically more economical than selective renovation?
2.What is the recommended budget strategy for gut renovations?
3.What is the typical planning cost for a residential gut renovation?