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Adding a garage to the property tends to be a good investment. The garage will give you extra space to store the cars or use it just as storage space. Garages can also be used as a workspace or workshop. Garages can also be converted afterward to any type of room if you plan carefully in the construction phase.
The garage will increase the resale value of the house. Return of investment is about 65-80%, But it’s important to consider things that could decrease or increase the resale value. Any home renovation projects that increase the overall square footage will usually increase the property value.
Let’s look at some real-world research data for the typical ROI of garages and garage door upgrades.
Is Detached Garage a Good Investment?
Detached garages are a good investment, but they can take up lots of space. Consider your lot size if it can fit a detached garage without making the layout look cramped. HOA (homeowners association) can also deny building a detached garage altogether if the community is highly restricted to certain styles.
You can also renovate old detached garages. There are many upgrades to garages like insulation, climate control, and finishing the inside. But, again, consider the resale value of the property carefully.
Adding a custom or pre-built detached garage is not cheap unless you can DIY a significant amount of the labor. However, there are prefabricated cheap garage kits available and pole barns for storage.
But in the proper detached garage, the ROI is 60-80% depending on the size and other various things. So you will not probably earn back the total value.
The national average is about 65% of the value of a detached garage during resale according to the Remodeling 2015 Cost vs. Value Report (www.costvsvalue.com) (2015 is the latest time they included garage additions.) Check the below links.
Example Garage Referred in the Report
“Construct a 26-by-26-foot freestanding two-car garage, including footings and slab-on-grade foundation, 2×4 wood frame with OSB structural sheathing, and gable truss roof at 6/12 pitch.
Install 25-year asphalt shingle roofing with galvanized metal flashing, vinyl siding, and trim. Install five double-hung 30-by-48-inch vinyl windows; one 3-0/6-8 exterior door with half-glass and lockset; and two composite 9-by-8-foot overhead doors with motorized openers.
Include 100-amp breaker at main house panel and 50 linear feet of trench buried conduit to feed new electrical subpanel. Provide electrical wiring for openers; three-way switching for fluorescent ceiling fixtures over each bay; three-way switching for two exterior spotlights; outlets to code. Interior wall, floors, and ceilings remain unfinished.”
Is an Attached Garage a Good Investment?
The attached garages usually come with the house and can be easily added to the blueprint plans during house planning. They also offer a lot of storage space and are a very common type of garage, making them a good investment. Most homeowners want a garage.
Building attached garages afterward will come with architectural difficulties because making significant changes to house structural integrity will bump up the cost.
Adding an attached garage should be done during major renovations to older houses and before moving in. Otherwise, the construction will negatively affect daily life.
New garage projects are much easier done as detached garages. Moreover, prefabricated garage kits are available, and modular ones can be customized to match the home design.
If you want to add an attached garage afterward. Take into consideration all the expenses. Here is an article about garage construction costs.
Is a New Garage Door a Good Investment?
A new garage door is an excellent investment with an ROI of 85-98% and will make the house easier to sell. A survey of real estate professionals found that 70 percent of Realtors agree that a new garage door helps sell a home for more money and faster.
Installing a new garage door has other benefits besides curb appeal. Such as:
Energy Efficiency – Insulated door will save a considerable amount of money in energy bills and make the temperatures more comfortable even without all garage insulation.
Appearance – There are many materials and styles available to make your home really stand out. Also, when selling the house, the first thing potential buyers will notice is the house’s outside appearance. And garage door is often a big part of it. With a custom garage door, you can complement the theme of the house. Check different types of garage doors in here.
Safety – Upgrading the door comes with better locks and upgraded safety features. You can even invest in a new garage door opener with smart technology to make life easier. Read about smart openers here.
Noise – the new door will be quieter in most cases, and modern openers can be very quiet too—no more squeaking noises from the garage.
Garage door replacement has long been in top ROI in the annual survey of Cost vs.Value Report conducted by Remodeling magazine. They rank home improvement projects by ROI at resale. Check it out.
Example Garage Door Referred in the Report
“Remove and dispose of existing 16×7-foot garage door and tracks. Install new four-section garage door on new heavy-duty galvanized steel tracks; reuse existing motorized opener.
A new door has a lifetime warranty and is made with high-tensile-strength steel with two coats of factory-applied paint, is foam insulated to minimum R-12, and includes thermal seals between pinch-resistant panels. Windows in the top panel are ½-inch insulated glass. Hardware includes galvanized steel hinges and ball-bearing urethane rollers.”
Does Garage Increase Home Value?
The garage will increase the resale value of the house. Return of investment is about 65-80%, But it’s important to consider things that could decrease or increase the resale value. Any home additions need to be thoughtful and customized to fit the present time and future needs.
Things To Consider:
The Lot Size: If the lot is small, adding a detached garage or pole barn can make the property cramped. So building an attached garage can make more sense. However, the attached garages can be, in some cases, very near the house, so this depends on the building regulations. Adding a short covered breezeway is a good option too.
Aesthetics – Prefabricated metal buildings can be cheap. But usually needs to be customized to match the design of the home. For example, in some areas, the HOA(homeowners association) will deny building detached garages, or they need to be highly customized.
Finishing the Garage – Many garages are left unfinished from the inside to keep the construction costs down. This will naturally affect the resale price too. Check this article about the cost of building a garage.
Insulation – Insulation is necessary for some regions and will make the temperatures inside the garage much more comfortable. Insulation also prevents condensation very effectively and adds soundproofing. Check this article on why and how to insulate the garage.
Climate Control – If the garage is used for anything more than simple storage. Adding heating and cooling with insulation will make space comfortably used as a workshop or something similar. Check these articles for heating and cooling.
Detached Garage – Will keep smells and loud noises away from the house and safer choice considering fire hazard. Detached garages can also be built with a second story to add more storage space or guest room.
Check this article for a different types of garages.
Attached Garage – Have direct access from the house and usually build simultaneously as the house. Adding one later is a massive project and should be done during major renovations to older homes. If your house has an attached garage, you can build a detached garage and redesign the attached garage footage to function as some other space.
Garage Size – How big of a garage do you need? What about potential future owners? Consider the other houses in the neighborhood and the surrounding local area. If many homes have 3 car garages and you build a 2 car garage, it could make the house harder to sell. The garage size can be a deciding factor for homebuyers. Check this article about different garage sizes.
Zoning Laws – In some regions, there can be restrictions on how big a percentage of land that buildings can cover. This includes every building on the property. There are also setback rules that buildings need to be located a certain distance from the rear, side, and front property lines. Street access needs to be counted too in the plans. Check this article where the detached garage should be located.