Rehab tiers are the standard scopes used to estimate renovation cost before a contractor bid exists: cosmetic (paint, floors, fixtures, minor repairs — systems sound), mid-grade (cosmetic work plus kitchen and bath renovation and some systems), and full gut (stripped to structure, all systems replaced, possible layout changes). Each tier carries a per-square-foot cost range in a given market, and the big-ticket systems — roof, HVAC, foundation, sewer, electrical — are priced separately on top of the tier figure.
The formula / structureEstimate ≈ (Tier $/sq ft × Living Area) + Big-Ticket Line Items + Contingency (10–15%)
Rehab Tiers: a worked example
Worked example. A 1,300 sq ft house classed mid-grade in a market where that tier runs an example $30–$40/sq ft gives $39,000–$52,000. The roof needs replacement beyond the tier's allowance, so it's priced separately, and a 10% contingency is added before the number enters the offer math. Tier ranges are local — calibrate them from real bids in your market.
What affects Rehab Tiers
- Local labor and materials pricing
- Which systems are graded repair vs. replace
- House age and hidden conditions (rot, wiring, cast-iron drains)
- Permit requirements for the scope
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