An external garage can add between $12,750 and $33,150 to your overall home value. Almost 85% of homebuyers regard external garage storage as desirable. So, you can expect to get 75% to 85% of your investment back when selling your home.
An external garage functions as a safe parking space, storage space, gym, or additional living space. Here’s an in-depth guide on how much value a garage adds to a house.
Key Statistics
Does the Type of Garage Affect Its Added Value?
Yes, the type of garage does have a bearing on the property’s fair market value. There are two primary types of garages:
1. Attached Garage
- An attached garage is connected to your existing home.
- It is considered to be the cheaper option as one wall (of your existing house) is already built.
- It offers greater accessibility by virtue of being attached to the main house.
2. Detached Garage
- A detached garage stands independent of your house.
- It offers more privacy and is easy to repurpose for additional living space.
- It allows you to enter and exit the garage without disturbing the main house.
Here’s an easy comparison between attached vs. detached garage:
| Consideration | Attached Garage | Detached Garage |
| Cost of Building | Cheaper to build | More expensive to build |
| Flexibility in Usage | Since these are attached to the main house, they don’t offer much flexibility in usage. | These can be used for a variety of purposes, including a workshop or a separate housing unit. |
| Security and Privacy Concerns | This can cause security concerns as it becomes an additional entry/exit to the house. | Offers greater security and privacy to the main house. |
| Accessibility | Easy access directly from the house. | Homeowners must brave the elements to access a detached garage. |
Regardless of the garage type, size is a crucial factor. A two-car garage will fetch you more than a one-car garage, whether it is attached or detached.
How Much Value Does a Garage Add to a House Based on Location?
On average, houses with garages sell for approximately 12% more than those without garages. However, this can vary depending on where you live.
The highest average is witnessed in Chicago, IL, at 38%. Here, a garage can add as much as $47,000 to your home’s value. On the other hand, in Raleigh, North Carolina, the average garage premium is only 2%. The same garage in St Louis, MO, will sell for far less in Raleigh, NC.
In a nutshell, garages do drive the value of your home. But, the amount by which the value increases fluctuates with location.
What Is the Cost of Building a Garage?
The average cost of building a garage in the United States is approximately $24,000. This number varies based on materials, foundation, interiors, and additional technology like automated doors.
A single-car detached garage can cost you around $7,250. Further, an attached three-car garage with a loft costs around $50,000. So, the cost of a garage depends on how big and fancy you want it to be.
Is Renovating an Existing Garage a Worthwhile Investment?
Yes. Renovating an existing garage means greater ROI. Here’s what you can do to improve your garage’s form and function:
- Add counters, cabinets, and cupboards for neat storage
- Re-paint the walls
- Resurface the floor
- Add automation to the garage door and lighting fixtures
You can also increase your house’s value by simply replacing the garage door. You can expect as much as a 102.7% return on a new garage door.
Key Considerations Before Adding a Garage
Here are several things you must take into account before you build a garage:
1. Choose the Type of Garage
Both attached and detached garages come with their set of pros and cons. Choosing the right one depends on your needs, lifestyle, and home layout.
If your priority is flexibility, a detached garage is a better option. Alternatively, if you brave extreme weather conditions, it’s best to have an attached garage. This allows you to access the space without stepping out of the house.
2. Research Your Local Zoning Laws
Your external garage must conform to the local zoning laws to avoid penalization. Zoning laws influence factors such as:
- Whether a garage can be added to your property
- Size limitations of your garage
- Other miscellaneous provisions such as drainage considerations, number of doors and windows, etc.
- What purposes can the garage be utilized for
Since zone laws vary by location, consult local authorities or real estate pros to get the complete picture.
3. Consider Its Effect on Your Driveway
Before constructing a garage, you must ensure that it does not hinder the entry and exit of your home. Design the garage based on your property’s orientation, layout, shape, and size.
You must also decide if your driveway needs to be altered to accommodate the external garage. Additionally, check if the property boundaries allow you to build the garage in a specific way.
4. Ensure It Has Adequate Ventilation and Insulation
You could use the garage to park your car, store gardening equipment, as your workshop, or even an entertainment room. But in all cases, ventilation and proper insulation (if the weather calls for it) are essential.
Silent threats like mold and mildew can fester if adequate airing measures aren’t undertaken during design and construction. So, make sure you factor in windows, building materials, and heating/cooling appliance requirements.
5. Plan Your Garage Layout for Maximum Flexibility
When designing your garage, it’s essential to factor in the primary objective of its use. However, avoid making it your sole priority.
For instance, if parking is the main goal, utilize the boundary of the garage as extra storage space. Incorporate shelves and cabinets to store miscellaneous equipment such as sports gear, gardening tools, electrical supplies, etc.
Bottom Line
A garage can add considerable value to your residential property. However, the extent of this value depends highly on where you live. So, ensure you consider that when conducting your cost-benefit analysis.
And once you have that locked in, it’s time to find a partner to maximize your property’s sale. Houzeo can help you sell your home faster and get maximum return on investment. Additionally, you can also save thousands in real estate commissions.
Frequently Asked Questions
Does the absence of a garage devalue a home?
No. But it does affect your pool of buyers. 85% of home buyers regard garage storage as essential. And so homes without a garage might have less demand.
Are there tax implications for adding a garage to a property?
Adding a garage to your house doesn’t independently drive your tax implication. However, by virtue of driving your home’s market value up, it can result in you paying capital gains taxes.
Does the interior finish of a garage affect its value?
A put-together, staged home can convince even the most hesitant of buyers. And so, yes a garage with an interior finish can help you drive its value.
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