Does a new garage increase home value?

Author: Gwen Thiel  |  Last update: Monday, October 6, 2025

A garage can add between 5% to 20% to a home's value, depending on factors such as location, design and the existing housing market. This increase can be especially significant in suburban areas where parking space is a premium.

How much does a garage increase home value?

The garage is an under-rated money maker for any homeowner

Let's talk numbers. Typically, the ROI of a garage addition is sixty-four to eighty-one percent, adding an estimated $20,000 to $35,000 to your home's value.

Is it worth building a new garage?

Yes, adding a garage can significantly increase your home's value. Homeowners can see a return on investment (ROI) of up to 65% after building a garage. A well-constructed, secure garage is an attractive feature for potential buyers, offering additional storage space and protection for vehicles.

How does a garage affect the appraisal?

The size of the garage greatly affects its appraisal value. Larger garages typically add more value to a home due to the additional space for vehicles or storage. For instance, a two-car garage will generally be appraised higher than a single-car garage because it offers more space and functionality.

Does converting a garage add value to your house?

Generally, a well-designed garage conversion can increase your property value by 10%-20%. If you add a bedroom with an ensuite, this will typically see the property value increase the most.

The Real Estate Value of a Garage Addition

Does a house lose value without a garage?

Having a garage will nearly always help you sell more quickly and likely at a higher value than a home without one.

How important is a garage for resale?

Yes, a garage can significantly add value to a home. According to HomeAdvisor, a garage can increase your home's value by $12,750 to $33,200. Remodeling Magazine's 2023 Cost vs.

What adds the most value to an appraisal?

Use the area around your home to boost its appraisal value
  • Improve your house's curb appeal. ...
  • Mow and clean up your yard. ...
  • Examine the exterior of your home. ...
  • Document all of your home upgrades. ...
  • Give your home a deep cleaning. ...
  • Patch up any imperfections. ...
  • Let the appraiser do their job. ...
  • Be open to the appraiser's questions.

What brings down a home appraisal?

Damage, incomplete repairs, and deferred maintenance can reduce your home's value. The appraiser deducts estimated costs of these repairs, affecting the appraisal amount. Outdated or non-functional features. An older home with outdated decor, appliances, or layouts may receive a lower value in its appraisal.

How much does it cost to build a 24x24 garage?

Site-Built 24×24 Garage Cost: Around $25,000

However, $25,000 is a good entry point for a custom, site-built garage. It is also important to note that while only a site-built garage can make use of the convenience of a concrete floor, that is not included in the $25,000 average price point.

Is converting a garage a good idea?

Whether or not converting your garage is a good idea can depend on whether you're planning to stay in your home or want to sell soon. If you have no plans to move anytime in the near future, converting your garage into a more livable space can certainly add a great deal of personal enjoyment to your home.

What is the ROI on a new garage?

How much value does a garage add to a house? A garage can increase your home's value, adding between $12,750 and $33,150, according to HomeAdvisor, which says you'll typically get back between 75% and 85% of your investment when you sell your home.

Does a new garage door increase home value?

Recent research says yes. According to Zonda Media's 2023 Cost vs. Value report, homeowners who replace their garage doors see a nearly 103% return on investment (ROI). On average, homeowners spent about $4,300 on a garage door replacement and saw a resale value of almost $4,420.

Does closing in a garage add value?

If done correctly a garage conversion will add extra finished square footage to a house. It does come at the expense of a garage. Unless one adds a garage or other covered parking the increase in value may be offset by the loss of the garage.

Does a garage or extra room add more value?

OTOH, houses with 3rd car garages are desirable, especially if you're in a price point where it's hard to find a 3rd car garage, so this would increase sellability more than a multipurpose room IF it will make you stand out for the price point.

What not to say to an appraiser?

In his post, he lists 10 things as a Realtor (or even homeowner), you should avoid saying to the appraiser:
  • I'll be happy as long as it appraises for at least the sales price.
  • Do your best to get the value as high as possible.
  • The market has been “on fire”. ...
  • Is it going to come in at “value”?

How to increase home value by $50,000?

Adding $50K in Value to Your Home: Top Strategies for Sellers
  1. Curb Appeal Matters. First impressions count. ...
  2. Upgrade the Kitchen. The kitchen is often the heart of the home. ...
  3. Bathroom Remodel. Bathrooms also hold great value. ...
  4. Energy Efficiency Improvements. ...
  5. Fresh Paint and Flooring. ...
  6. Professional Staging. ...
  7. Proper Pricing Strategy.

What makes your home appraise higher?

Options to maximize your home's appraisal value can include bolstering the property's curb appeal, documenting home upgrades, making minor repairs, deep cleaning the home and doing your own comparison analysis.

Does upgrading a garage increase home value?

You wouldn't necessarily think so, but a garage can increase your home's value by tens of thousands of dollars. According to HomeAdvisor, a garage can add between $12,750 and $33,200 in value to your home.

What makes the most money at a garage sale?

Because tools and furniture are in demand and hold up well over time, they typically sell well and/or make the most money at yard sales. If electronics are still current and in good shape, these can also be high earners.

Is it a good idea to buy a garage?

Garage units are a great, low-hassle way of investing in property. They're also very low maintenance, with no boilers, leaks or noise issues – so can be far less hassle than renting out a house or flat, especially if you're new to the residential property game.

Does converting a garage add value?

Does Converting a Garage Add Value to Your Home? As long as you complete your garage conversion properly, it will add value to your home. The value itself depends on how seamless the conversion is and the type of room you build. Typically, you can expect to recoup about 80% of the project cost.

Can I remove my garage door and replace with a window?

Can a garage door be replaced with a window? Yes, a garage door can be replaced with a window.

Do you need permission to convert a garage?

In most circumstances, you will be able to convert your garage without getting planning permission from your local planning authority. However, there are some instances where planning permission will be required, and so we have put together this short guide to help you.

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