How Much Value Does a Garage Add to a House? Top 5 Benefits
The Value of Adding a Garage to Your Home
How much value does a garage add to a house? The answer may surprise you. Adding a garage to your home can potentially increase its value by anywhere between $12,750 and $33,200, according to HomeAdvisor. While the immediate thought might be about extra storage or vehicle protection, the financial upside is clear: homeowners generally recoup 75% to 85% of their investment when selling the property.
A new garage is not just an investment in convenience and security; it’s also a strategic move for boosting your home’s resale value. For instance, Remodeling Magazine’s 2023 Cost vs. Value Report shows that simply replacing a garage door can yield a 103% return on investment, virtually guaranteeing you make a profit.
I’m Ryan Norman, founder of Norman Builders. With over 15 years of experience in home building and renovations, I’ve seen how much value a garage can add to a house. Whether you’re looking to increase your home’s resale value or improve your living space, adding a garage is a smart move.
Let’s explore the details.
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How Much Value Does a Garage Add to a House?
Financial Benefits
Adding a garage to your home can be a fantastic financial decision. According to HomeAdvisor, a garage can add between $12,750 and $33,200 to your home’s value. That’s a substantial increase, making it a worthwhile investment.
But how much of your investment can you expect to get back when you sell your home? The numbers are compelling. Homeowners typically recoup 75% to 85% of their investment in building a garage. This makes sense when you consider that 85% of homebuyers value garage storage, according to a 2019 survey by the National Association of Home Builders.
If you already have a garage, even simple upgrades can yield high returns. Remodeling Magazine’s 2023 Cost vs. Value Report found that replacing a garage door has an average ROI of 103%. That means you could actually make money on the investment—a rare feat in home maintenance.
Practical Benefits
Beyond the financial perks, a garage offers several practical benefits that can improve your daily life and make your home more attractive to buyers.
- Vehicle Protection: A garage protects your vehicles from harsh weather, reducing wear and tear and potentially extending their lifespan.
- Storage: Extra storage space is always a plus. Whether you need room for tools, sports equipment, or seasonal items, a garage offers the perfect solution.
- Flex Space: A garage can be more than just a place to park your car. It can serve as a workshop, gym, or even a home office. The flexibility of this space adds significant value to your home.
In summary, adding a garage is not just a financial investment but also a practical upgrade that improves your living experience and makes your home more marketable.
Let’s explore the types of garages and their specific benefits in the next section.
Types of Garages: Attached vs. Detached
When considering adding a garage to your home, one of the first decisions you’ll need to make is whether to build an attached or detached garage. Each type has its own set of advantages and disadvantages, which can impact everything from cost to convenience and return on investment (ROI).
Attached Garages
Convenience
Attached garages are incredibly convenient. They offer direct access to your home, making it easy to carry groceries, avoid bad weather, and stay warm in the winter. This direct connection to your living space can be a significant selling point for potential buyers.
Cost Efficiency
Building an attached garage is generally more cost-effective. According to HomeAdvisor, attached garages typically cost 10% to 15% less to build than detached garages. This is largely due to shared walls and existing electrical and plumbing systems that reduce construction costs.
Popularity
Attached garages are the most popular choice in American homes, especially in suburban areas. Their practicality and lower building costs make them a frequent choice for homeowners looking to add value to their property. Because they are a common feature, they can make your home more attractive to a broader range of buyers.
Detached Garages
Privacy and Sound Insulation
Detached garages offer more privacy and better sound insulation. Because they are separate from the main house, they can be ideal for activities that generate noise, like woodworking or band practice. This separation can also provide a quieter living environment inside your home.
Dynamic Conversions
One of the standout features of detached garages is their flexibility for conversion into livable spaces. Whether you’re considering an Airbnb rental, a mother-in-law suite, or a home office, a detached garage offers more dynamic and exciting possibilities for change. This can significantly increase your home’s usable square footage and, consequently, its market value.
Cost Comparison and ROI
While detached garages are more expensive to build, costing 10% to 15% more than attached garages, they can offer a higher ROI in certain situations. The ability to convert the space into a livable area can add substantial value. According to Remodeling Magazine, such conversions can yield high returns, especially if the space is well-designed and functional.
In summary, both attached and detached garages have their own sets of benefits. Attached garages offer convenience and cost efficiency, making them a popular choice. Detached garages, on the other hand, provide more privacy and dynamic conversion opportunities, albeit at a higher initial cost. Your choice will depend on your specific needs, budget, and long-term plans for your property.
Renovating an Existing Garage
Renovating an existing garage can be a cost-effective way to add significant value to your home. Let’s explore some low-cost and high-impact upgrades that can transform your garage into a versatile and appealing space.
Low-Cost Upgrades
Garage Door Replacement
One of the most impactful yet affordable upgrades you can make is replacing your garage door. According to the Cost vs. Value Report, the average return on investment (ROI) for a new garage door in 2022 was an impressive 93.3%. Modern garage doors not only improve curb appeal but also improve energy efficiency and security.
Resurfacing the Floor
Another budget-friendly upgrade is resurfacing your garage floor. A clean, smooth floor can make the space look more polished and inviting. Epoxy coatings are a popular choice due to their durability and aesthetic appeal.
Adding Storage
Installing new storage solutions can also significantly improve the functionality of your garage. Shelving units, overhead racks, and wall-mounted hooks can help organize tools, sports equipment, and seasonal items, making the space more usable and attractive to potential buyers.
Painting and Insulating
A fresh coat of paint can brighten up your garage and make it feel more like an extension of your home. Insulating the walls can improve the comfort and energy efficiency of the space, making it suitable for various uses year-round.
High-Impact Upgrades
Workshop Counters and Cabinets
For homeowners who enjoy DIY projects, adding workshop counters and cabinets can transform a simple garage into a functional workspace. Built-in counters and cabinets provide ample storage and workspace, making it easier to tackle home improvement projects.
Organizational Structures
Investing in organizational structures like pegboards, tool chests, and custom storage solutions can make your garage a highly efficient and organized space. These improvements not only improve functionality but also appeal to buyers looking for a well-maintained and practical home.
Garage Conversions
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. For instance, converting a garage into a living space can increase your livable square footage and bedroom count, which are major selling points for potential buyers.
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.
Costs and Financing Options
Building or renovating a garage can be a significant investment, but it can also add substantial value to your home. Let’s break down the costs and explore various financing options to help you make an informed decision.
Cost Breakdown
The cost of building a garage can vary widely based on factors like size, materials, and location. Here’s a rough estimate of average costs:
| Garage Type | Average Cost Range |
|---|---|
| 1-Car Garage | $10,000 – $25,000 |
| 2-Car Garage | $20,000 – $45,000 |
| 3-Car Garage | $30,000 – $60,000 |
| RV Garage | $36,000 – $70,000 |
Source: HomeAdvisor
These estimates include basic construction costs but can increase with additional features like insulation, electrical work, and custom finishes.
Financing Methods
If paying cash isn’t an option, several financing methods can help you fund your garage project:
Home Equity Loan
A home equity loan allows you to borrow against the equity you’ve built in your home. You receive a lump sum with a fixed interest rate, making it easier to budget for monthly payments. Many lenders prefer that you don’t borrow more than 80% of your home’s equity.
Home Equity Line of Credit (HELOC)
A HELOC provides a revolving line of credit, giving you flexibility to borrow as needed during the draw period, which typically lasts 5 to 15 years. You can make interest-only payments during this time, but once the draw period ends, you’ll start making full monthly payments. HELOC interest rates are usually variable, so your payments can fluctuate.
Personal Loan
Personal loans for home improvement projects can range from $500 to $100,000 with repayment terms from one to seven years. These loans don’t usually require collateral, but interest rates can be higher, especially if you don’t have strong credit. Some lenders may charge upfront origination fees.
Pros and Cons Summary
| Financing Method | Pros | Cons |
|---|---|---|
| Home Equity Loan | Fixed interest rate, predictable payments | Risk of losing home if you default |
| HELOC | Flexible borrowing, interest-only payments initially | Variable rates, payment fluctuation |
| Personal Loan | No collateral required, quick approval | Higher interest rates, possible fees |
When choosing a financing method, consider your financial situation, credit score, and long-term plans. Consulting with a financial advisor can also provide personalized guidance.
By understanding the costs and financing options available, you can make a more informed decision about adding a garage to your home. Next, we’ll dive into frequently asked questions about how much value a garage can add to your property.
Frequently Asked Questions about How Much Value Does a Garage Add to a House
Does a garage add value to a home?
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. Value Report found that replacing a garage door alone can offer an average ROI of 103%, meaning you could actually make money on that investment.
How important is a garage for resale?
A garage can be crucial for resale, especially in certain markets. The National Association of Home Builders found that 85% of homebuyers value garage storage. In cities like Chicago, a garage can add up to a 38% premium to the sale price of a home. On the other hand, in places like Raleigh, NC, the premium might be as low as 2%. The key takeaway? The importance of a garage varies by location, but it generally makes a home more attractive to buyers.
Is having a garage worth it?
Absolutely, having a garage is often worth the investment. Beyond the financial benefits, there are practical advantages like additional storage, protection for your vehicle, and even potential as a flex space. If you already have a garage, simple upgrades like a new door can offer a high return on investment. However, consider your own needs and how long you plan to stay in your home. If you plan to use and enjoy the garage, the investment typically pays for itself over time.
Conclusion
Adding a garage to your home is an investment that offers both financial and practical benefits. Whether you’re looking to increase your home’s resale value or simply need more space, a well-designed garage can deliver substantial returns.
At Norman Builders, we specialize in creating custom garage additions that align with your needs and budget. Our expertise in new home construction and remodeling has made us a trusted name in the Merrimack Valley, North Shore, Seacoast, and Southern NH areas since 2007.
By choosing Norman Builders, you’re not just adding a garage; you’re enhancing your home’s overall appeal and functionality. Our personalized service ensures that every project is custom to meet your unique requirements, making your home more attractive to potential buyers and more enjoyable for you.
Ready to explore the benefits of a garage addition? Contact us today to get started on your project. Let our team of experts help you add value and convenience to your home with a beautifully crafted garage addition.
By investing in a garage, you’re making a smart choice for both your present and future. From increased home value to added convenience, the benefits are clear. Trust Norman Builders to deliver exceptional craftsmanship and personalized service for your home improvement needs.
