Increased Property Value: One of the best benefits of adding a garage is the increase in property value. According to various real estate research, homes with garages generally command higher prices than similar homes without them.
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.
In my experience, garage conversions typically do not add value to a home. Right off the bat, a large handful of buyers will not even be interested in the property if it does not have a garage. Therefore, the seller is missing out on about 60% of the potential buyers.
The biggest variance on how much value a garage will add to a house is simply location. The national average premium for a garage is about 12% — in other words, across the country houses with garages sell for about 12% more than houses without one.
If you're looking to maximize your home's value, consider converting your garage into a livable space. Adding a bedroom, home office, or even a rental unit can significantly boost your home's market value. While this is a more substantial investment, the payoff can be substantial.
A garage can increase the value of your property by between 5% and 10%, according to recent research. However, this only holds true for single garages; a double garage might increase the value by up to 20%!
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.
A “functionally adequate” garage in a typical market might add $5,000 to $25,000 worth of value, says Mike Ford, a Southern California-based general certified real estate appraiser since 1986. In high-end markets, the value might be higher.
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.
“Not having a garage is never an issue if the home is priced appropriately,” says Vander Stelt. “Every home sells in every type of market for a price. There's always a market, always.”
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.
Having a garage will nearly always help you sell more quickly and likely at a higher value than a home without one. The bottom line, buying a home with a garage won't hurt your investment plans (unless it's a mess and falling down!) and will likely help you sell with a higher future value.
Garages and parking spaces are in higher demand than ever before, so having – or adding – one attached to your property can significantly increase its value should you choose to sell.
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.
A garage is a highly sought-after feature in a home. Not only does it increase the value of your property, but it provides practical benefits as well. If you have one or more vehicles, an attached garage can provide a secure space to keep them protected.
A detached garage doesn't count as living space. An attached garage may count as living space if it meets specific requirements. Converting your garage to a livable space may increase your home's value.
A general rule of thumb though is that a single garage can add between 5-10% of the total value of your property and up to 20% for a double garage.
As well as providing the family with extra living space, converting the garage was a great way of boosting the value of the property. In fact, it's thought that a garage conversion can increase the value of a home by as much as 20%.
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.
A converted garage can help to make your property more appealing to potential buyers. Whilst storage is often a feature people look for in their home, an extra room will often make your property stand out on the market.
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.
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.