Does upgrading a garage increase home value?

Author: Ardith Pollich IV  |  Last update: Monday, July 21, 2025

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.

Does converting your garage add value?

Yes, converting a garage will often increase the property value. This is because you will typically be taking an underutilised space and transforming it into a more functional living space, whether you add an extra bedroom, living area, or home office.

Is renovating a garage worth it?

In summary, renovating your garage with both low-cost and high-impact upgrades can add considerable value to your home. Whether you're replacing the garage door, adding storage, or converting the space into a livable area, these improvements can make your home more attractive and functional.

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.

What adds the most property value to your home?

Kitchen upgrades typically offer the best return on any kind of home renovation, increasing a home's value between 32% and 86% of the amount spent on the remodel. [1] A minor kitchen remodel can cost around $25,000, while a major kitchen remodel can cost anywhere from $75,000 to $150,000.

6 Highest ROI Home Improvements That ADD VALUE

Does adding a garage increase home value?

According to various real estate research, homes with garages generally command higher prices than similar homes without them. 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.

What decreases property value the most?

10 Surprising Things That Decrease Property Value
  • Bad Neighbors. ...
  • Poor Exterior Paint Quality. ...
  • Deferred Maintenance. ...
  • Neighborhood Foreclosures. ...
  • Proximity to Certain Facilities and Businesses. ...
  • An Unsightly Yard. ...
  • The Address Suffix. ...
  • Too Much Personalization.

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.

What not to say to a home 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”?

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.

Is it legal to convert a garage into a room?

Since California has passed the new ADU laws this year, usable rooms like garage conversions can be used as a source of passive income. Even if you're only planning on converting the garage to an additional bedroom or home office, permits will be needed for residential construction.

What is the cheapest way to remodel a garage?

Affordable Garage Remodel Ideas on a Budget
  1. Decide whether or not to insulate. ...
  2. Choose affordable but practical material for your walls. ...
  3. Skip the finishing and line your garage with storage. ...
  4. Upgrade your floor in your garage remodel to make it look like new. ...
  5. Turn your garage into a multipurpose area.

Is it a good idea to convert a garage?

Converting a garage is a cost effective and less invasive way of creating more space such as an extra bedroom, living room or extension to the existing kitchen. Perhaps your family needs additional contained living space such as 'granny flat' or bedsit with facilities as the kids get older but still live at home.

Will my house lose value if I convert the garage?

The value an ADU adds to a property can be substantial and varies based on several factors including its purpose, size, type, and geographical location. In markets like California, an ADU can instantly boost a home's value by $200,000 to $500,000, with projections for further appreciation over time.

What adds more value to a house, a garage or bedroom?

If the multipurpose room is finished (walls, insulation, HVAC, lighting) it will always add more value. Increasing square footage will (almost) always increase a houses value. A third car garage is a nice feature, but will not proportionately increase value.

Do appraisers look in the garage?

Yes, an appraiser will look in the garage. They need to determine the space (how many cars it can hold) and include it in the official appraisal.

What affects appraisal the most?

What Affects Home Appraisals?
  • The home's location.
  • Land size.
  • Number of bedrooms and bathrooms.
  • Square footage.
  • The year built.
  • Curb appeal.
  • Major systems and home appliances.
  • The condition of the home and its systems.

Do appraisers look in closets?

An appraiser will likely look in your closet to measure it to determine how big is it as larger closets and home with more square footage are more valuable. The appraiser will not assess the cleanliness of your closet.

Do garage improvements increase home value?

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.

Should I get rid of my garage?

They can be great for storage, help you to keep your car safe and even lower your car insurance premiums. But depending on your setup, removing your garage could also help you to gain other benefits – whether that's to do with increasing the size of your garden or gaining more living space.

What does not increase home value?

Don't expect a dollar-for-dollar return

However, big-ticket items, such as pools, major kitchen and bath remodels and extensive landscaping undertaken for the sole reason of adding value might not bring the return you hoped for.

What devalues a house the most?

8 things that will devalue your home
  • It's important to every homeowner that their property retains its value. ...
  • 1) Poor workmanship. ...
  • 2) An increase in crime levels. ...
  • 3) A substandard kitchen. ...
  • 4) Noise pollution. ...
  • 5) Uninspiring exterior. ...
  • 6) How silent are the neighbours? ...
  • 7) Not energy efficient enough.

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 raises property value the most?

Top Home Improvements to Boost Property Value

Revamping your kitchen with sleek new appliances, crisp countertops, and stylish cabinets can net a whopping 102% return on investment when you sell your home, the National Association of Realtors reveals.

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