Does Adding A Garage Increase Home Value?

Understanding the Value of Adding a Garage

Adding a garage to a property can be a potential game-changer regarding its value. In many cases, homes with a garage command a higher asking price than those without. This increase is not just due to the added convenience but also because a garage can be a multifunctional space – for parking, storage, or even a workshop.

A HomeAdvisor study reported that garages can increase a home’s value between $12,750 and $33,150 more, netting about a 75% to 85% ROI when the home sells. Of course, the actual value addition varies based on location, size, and the quality of the construction.

Types of Garages and Their Impact

When considering adding a garage, homeowners can choose between an attached or a detached garage. Each comes with its benefits and potential drawbacks.

Attached Garages: These are connected to the main house, offering easy access. They're often more convenient, especially in areas with harsh weather conditions. However, they might limit design options and can be more challenging to retrofit in some homes.

Detached Garages: These stand alone from the main house and offer more flexibility in design and location on the property. They can be customized to match or complement the home’s style, potentially adding more aesthetic appeal. However, they might require more land and can be less convenient in terms of access.

Customization options for both types of garages include size variations, choice of materials, and additional features like electric car charging stations or smart security systems. These customizations can further enhance the value of the property.

Considering Your Home and Neighborhood

Before taking on a garage renovation or addition, it's important to consider the specifics of your home and neighborhood. Not all homes are ideally suited for a garage addition, and not all neighborhoods will yield the same return on investment.

Home Style Compatibility: The design of the garage should harmonize with your home's existing style. A mismatched addition can detract from the aesthetic appeal and potentially decrease the value of your home. Whether you own a modern, traditional, or historic home, the garage should be a natural extension of its style.

Neighborhood Standards: In neighborhoods where most homes have garages, adding one can be vital for keeping your home competitive in the market. Conversely, in areas where garages are less common, the addition might not yield as significant a return but could still offer a unique selling point.

Cost Analysis and Budgeting

Building a garage involves various costs, which can vary greatly depending on location, size, and materials chosen. On average, homeowners spend between $16,000 to $39,000+ for a standard two-car garage, according to a report by Bob Vila. This cost includes:

• Materials: From basic wood framing to high-end finishes.
• Labor: The cost of skilled labor for construction.
• Permits and Legal Fees: Depending on local regulations, these can add to the overall cost.
• Additional Features: Including electricity, insulation, and custom doors.

Budgeting wisely and considering potential cost-saving measures, like choosing more affordable materials or a simpler design, can help keep expenses in check.

Return on Investment (ROI)

The ROI of a garage addition can be significant. While it varies, homeowners can expect an average return of 75%-85% of their investment when they sell their home. This ROI is competitive with other popular home improvement projects, making a garage addition a financially sound decision for many.

Legal and Zoning Considerations

Before construction begins, it's essential to understand local zoning laws and acquire the necessary permits. These regulations can dictate the size, location, and even the appearance of your garage. Consulting with a professional like Revive or your local zoning office is crucial to ensure your project complies with all legal requirements.

The Construction Process

Adding a garage is a significant undertaking. Here's a general overview of the process:

1. Planning and Design: Work with a professional to design the garage.
2. Obtaining Permits: Ensure all legal requirements are met.
3. Hiring a Contractor: Work with a vetted contractor experienced in garage construction.
4. Construction: The actual building process can take several weeks to months.
5. Inspection and Final Touches: Ensuring everything is up to code and finalizing the project.

Key Takeaways

Adding a garage to a house is more than just an aesthetic upgrade or a convenience feature; it's a substantial investment in the value of your property. While the upfront costs can be significant, the potential increase in home value, alongside the added functionality and appeal, often makes this project a worthwhile venture for many homeowners.

For added peace of mind, always consult with a professional before undertaking such a large and potentially expensive project on your own. Revive experts can be of help. Get in touch with a Property Advisor here.