Whether you're hoping to sell your property soon or want to add value to it in the long run, the garage might not be the first place you think of when considering home improvements. Numerous households use the garage as a dumping ground for unwanted possessions and a workshop for personal projects, thus its aesthetic value is often overlooked. However, if you are searching for a creative way to impress potential buyers, a finished garage is one option at your disposal. And yet, does a finished garage actually increase the selling price of a home? This question's answer is conditional on the specific objectives you have in mind and the kind of client you hope to attract.
Any homeowner or real estate agent worth their salt knows that the right fixtures and fittings may sway a reluctant buyer into a committed client. Did you know that a finished garage can raise your home's market value? Bathrooms and kitchens that have been upgraded, together with fresh paint and expert staging, can increase your home's value and interest from potential buyers.
When guests arrive at a house, they expect the other rooms to be satisfactory. However, when they open the door, they are pleasantly surprised to find a finished garage that can be used as a usable area. One of the most popular Ontario home builders claims that a finished garage can provide as much extra income as an extra bedroom in the main house.
The key to successfully producing that additional space is making it feel cosy and inviting, like a space that can actually be utilised, by supplying it with lights, finished flooring, weatherproofing, and storage that is actually used. To achieve your goal, you must plant the seed in their minds that "that garage could work well as a rec room, playroom, gym, or any number of other things" as they leave your presentation.
What is a "finished garage" exactly?
Finishing a garage can imply a number of various things depending on your prefered design aesthetic and the overall design of your home. Using a definition that is both broad and inclusive, we can cover the great majority of recently built houses.
In the end, the finished garage ought to share the same essential traits as the rest of the house.
This means that there shouldn't be any exposed ducts, wiring, studs, or beams anywhere in the house. Drywall installation in the garage is recommended if same material has been used elsewhere in the house. Depending on the climate of your area, garage insulation, heating and cooling systems, or both may be necessary. You can use tile, epoxy, or even exposed concrete for the floor, but make sure to seal it so that water doesn't seep in and cause problems.
Also crucial are the room's illumination and air circulation. A well-lit room with a strategically placed fan may do wonders for the comfort and friendliness of the space.
Your home's design should incorporate beams and ducting if it has a rustic cabin or industrial design theme. When you have finished detailing your garage to the same standard as the rest of your home, you may declare it complete.
What does a finished garage do to the home appraisal?
Now comes the time when actual action must be taken.
I contacted a number of appraisers operating in some of the most competitive housing markets in the country to enquire as to whether or not the presence of a finished garage was taken into account when assigning a value to a home.
As it happens, this does make an impact, though perhaps not as much as you had hoped.
Standard garage renovations can easily cost several thousand dollars due to the high price of materials like drywall, paint, flooring, and garage storage.
A sizeable chunk of that sum will go towards the price of the storage cabinets, but their worth shouldn't be factored into the appraisal. A real estate evaluation takes into account solely the physical features of the property. Most garage storage options do not qualify because they can be easily packed up and relocated.
The only components that are missing are the drywall and flooring. The average home's resale price increase is below 50% of the original purchase price. An gain of roughly $1,000 in value is to be expected in most cases.
Beyond the numbers: adding "curb appeal."
It appears that a finished garage adds minimal value to a home. There is, however, always room for enhancement in terms of your home's kerb appeal. That might be as nice as anything else.
To what extent does it have "kerb appeal?" The word "kerb appeal" is used to describe the qualities of your home that set it apart from others in the neighbourhood (these houses are referred to as "comps").
When I was a kid, we lived in Pennsylvania, where my mum was a real estate agent. Recently, I've been exposed to numerous discussions concerning the importance of getting a property ready for sale.
She'd put in a lot of time advising clients on how to best present their homes to potential buyers.
If potential buyers were impressed by a home's kerb appeal, there would be more interest in buying it. As a result, the house sold faster and at a price closer to the original asking price.
You have a garage, but what does this have to do with anything?
There is a general consensus that the garage will be disorganised and incomplete. I challenge you to take a drive around your neighbourhood on a Saturday afternoon if you don't believe me. I think you'll be astonished by what you find. Most people have to leave their automobiles on the driveway rather than the garage since the garage is full of junk.
Having a finished, tidy, and well-organized garage can set your house apart from the others.
What about converting your garage to a gym or an additional bedroom?
The situation is becoming increasingly complex. If you want to use your garage for something other than storing your car, you'll need to take a lot more measures.
According to Nest.com, a single-car garage can enhance a home's value by as much as $5,000. One might reasonably anticipate losing at least that sum if one decides to turn their garage into an additional room.
Many would-be buyers, myself included, will rule out a house because it lacks a garage.
Obtaining the necessary licences from the local government is essential if you plan on making a space that is not currently habitable into one that is. They are worried about the well-being of their employees and the standard of their work.
The safety of both your family and the next owner should be taken into account when you put your house up for sale. If the conversion you're planning doesn't follow all the applicable construction rules, it might dramatically reduce the value of your home.
If you want to turn your garage into anything else, like a gym or a workshop, you should do it in a way that will make it simple to convert it back when you decide to sell your home. Garage conversions of a more permanent nature, like adding a bedroom, are best left to the specialists and not attempted by the average homeowner.
The range of garage renovations in Melbourne offered by Hitch Property Constructions is the most comprehensive. Take a look at it over here.
Finished vs. converted garage: How each impacts your home's value
You should know right off the beginning that removing the garage door in order to convert the area into living quarters is a terrible idea if you plan on selling your property in the near future. Houses without functional garages are less desirable and harder to sell.
The recent stay I had in a garage that had been turned into living space confirmed my suspicion that such a modification can reduce the market value of a property.
The seller had turned the garage into a big extra bedroom, but the room was inconveniently located and lacked an accompanying bathroom. Before listing the house for sale, he had to fix up the garage so that it could be used again.
While finishing your garage won't hurt your home's value, it also won't help it either.
To address the question of whether or not a finished garage increases the value of a home, we would need to look at each individual situation. Some of my clients could care less about it, but for others it could be crucial.
How much does it cost to finish the garage?
In addition to textured and painted walls, refinished flooring, built-in storage, and other amenities are commonplace in finished garages.
When you factor in the cost of all the optional additions, the final price tag for building your garage may be as high as $9,970. Ten thousand dollars is too much to pay for a space that serves largely as a garage.
The conclusion is that doing the garage renovations right before selling the house is not a wise use of the money.
Most homeowners will need to clean and organise their garage before listing their property for sale. Money spent on completing the garage could be better put to use in other home improvement projects that provide a greater return.
However, there are situations where an unfinished garage is unacceptable. An unfinished garage is not acceptable in some contexts, such as when selling a $1.5 million luxury property or when living in a community where all of the neighbours have finished garages.
Get professional advice before you make any moves.
A good local real estate agent will know whether or not completing a garage can raise the value of a property in your region based on their familiarity with buyer preferences and popular home upgrades in your price range.
For instance, even if you live in a region where garages are not very popular or highly prized, the fact that your property currently has one finished can be an advantage. Prospective buyers will also be pleased to learn that the garage has been completed, so make sure to mention this detail in all of your advertising. Potential buyers may weigh that and other features against the price and location of a home when making their decision.
Finished garages do have a market, although a specialised one that is limited even by niche standards. If you finish the garage, you may find a buyer who is willing to pay more for it. This may be a hobbyist who plans to use it as a workshop, or a gearhead mechanic who wants a nice space to store his historic vehicles. Regardless of the outcome, this shopper will be exceedingly unusual.
However, if a seasoned real estate agent in your region advises you against it, you'll avoid spending potentially tens of thousands of dollars.
How a Finished Garage Impacts Appraisal Value
If the sole goal of your home improvement project is to increase the property's appraised value, completing the garage may not be the best use of your money. It may have a gloomy air, but it is merely a glimpse into the bigger picture. Having a finished garage can be a major selling point for potential buyers, even if it doesn't increase the value of the home much on its own. This is the case regardless of whether or not the finished garage adds to the resale value of the house.
The "Wow Factor" of a Finished Garage
Although a finished garage may not increase a home's resale value, it might be a deciding factor for buyers. Potential buyers who are excited about do-it-yourself home repair projects are likely to be very interested in this, and it could help your home stand out from the competition. The worth of finishing your garage is realised at this point, however it is subjective and will only increase the property's value for the right buyer.
Considering the Cost of a Finished Garage
Finishing the garage will cost more than some of the other remodelling jobs in the house, but it won't break the bank. The first outlay is considerable because the national average cost to finish a garage is roughly $10,000. The buyer and the observer are equally qualified to determine whether or not the investment was profitable.
Why Finishing Is Better Than Converting
It's not a good idea to remove the garage door in the middle of a renovation and change the garage into something different. A finished garage retains the same character and utility as an unfinished one, while a converted garage is essentially just another room.
A Middle Ground for Your Garage
The garage can be made more appealing without lowering the resale value of the home if the right balance is struck. Simply cleaning, organising, and restoring any obviously broken parts of your garage will give it a fresh, updated look without the expense of finishing the space.
While completing your garage may not directly increase your home's sales value, it can be a major unbiased factor in attracting the right buyer. For the proper buyer, a finished garage could be a huge selling point, but not all customers care about that. If you're not sure whether finishing the garage is a good use of your money or not, your real estate agent can help you decide.
How a Finished Garage Can Increase Your Home's Resale Value
Cover the Concrete
Renovating the flooring is a worthwhile investment because of its positive return on investment. If you want to change the feel of a space but can't stand the look of concrete floors, consider covering them with something more fitting. All the same laminates, wood, tiles, and carpets as the rest of the house are available for individuals who don't plan to bring their cars inside. If you want to make sure your flooring lasts and can still be used by vehicles, investing in a coating like Rhino Floortex Coating is the way to go. A clean, durable, and visually beautiful coating was applied over the cracked and dusty concrete.
Wrap the Walls
Your garage, with its exposed insulation and wooden rafters, doesn't look like a great location to keep golf clubs, let alone a big-screen TV and visitors if you ever decide to turn it into a living space. Adding insulation, drywall, and a wall covering (paint, paper, etc.) may make a huge difference in how a room feels and looks.
The availability of sufficient storage space is one of the most desired characteristics among prospective purchasers. Space-saving storage cabinets, floating shelving, and hooks can help kids get organised better than labelled boxes on the floor, so installing them is a fantastic approach to help them check a few things off their list.
Designate the Space
Help prospective buyers imagine what they could do with the area by designing attractive and practical garages for them. Set off a section of wall or a corner of the room and use that as your workspace. Prepare the space for usage by installing a workbench and a pegboard to house your various tools. It's helpful to have a plan in place for your handyman, so he knows where he can get his job done around the house or at the office. Don't leave it to chance; this is what many people want. As an additional consideration, make sure there is plenty of general illumination.
Map out an Entertainment Zone
If there is a functional entertainment area, a buyer will likely be interested in it for the same reasons they would be interested in a workbench. You may spruce it up with some seating (an old sofa and coffee table will suffice), or you can go all out and put in a TV, surround sound, and some seats for the game! Make use of your creative faculties; just be sure it's practical, adaptable, and interesting to a wide range of people.
Are you looking for garage renovations in Melbourne? No need to look any further. You have nothing to worry about when you hire Hitch Property Constructions.
So does a finished or converted garage affect the value of your home?
Removing your garage door to turn it into liveable space may seem like a smart idea at the time, but it could hurt your chances of selling your home in the future. Some homeowners have been compelled to modify the area so that it may once again function as a functional garage in order to sell their home; the alternative is to keep the property on the market for a much longer period of time.
While finishing a garage probably won't lower a home's value, it also won't likely raise it. A finished garage could be just what a buyer is seeking for, making your home stand out from the competition, or it could be a "good to have" that the buyer overlooks in favour of other features of the home. A completed garage is a nice addition to any house.
Depending on your personal taste and the style of the rest of your house, "finishing the garage" might mean a wide variety of things. Popular Ontario home builder suggests that a finished garage might provide as much more money as an additional bedroom in the main house. There may be a need for garage insulation or a heating and cooling system. If dry wall has been utilised in other rooms of the house, it is advised that it be installed in the garage as well. It's possible that a room's lighting and placement of a fan can have a significant impact on how inviting it feels.
The absence of a garage is a deal breaker for many homebuyers. To make your home stand out from the competition, make sure the garage is finished, clean, and well-organized. The addition of even a simple garage can raise the price of a house by as much as $5,000. A finished garage won't add much value to your property, but it won't hinder it, either. Permanent garage renovations, such as adding a bedroom, should be handled by professionals.
A price of $10,000 seems excessive for a room that will primarily be used as a garage. When trying to sell a $1.5 million luxury home, an unfinished garage is not acceptable. Potential buyers may be more interested in a home with a finished garage. Depending on the market, you can get more money if you finish the garage and sell the house. The final cost of finishing the garage will be higher than that of other home improvement projects, but it still won't be prohibitive.
It's not necessary to choose between a finished or unfinished garage; both have the same charm and practicality. About $10,000 is the national average price tag for garage finishing. Remodeling the flooring yields a high rate of return and is a wise financial move. Changing the look and feel of a space may be as simple as adding insulation, drywall, and a wall covering (paint, paper, etc.). Kids' rooms might benefit from space-saving storage cabinets, floating shelves, and hooks.
The completion of a garage is an attractive feature in any home. A number of homeowners have been driven to make adjustments to their garages in order to make them usable again. It's possible that a buyer will prioritise the finished garage over other amenities when making their decision, but it's also possible that they won't give it much thought at all.
- Did you know that a finished garage can raise your home's market value?
- Now comes the time when actual action must be taken.
- A real estate evaluation takes into account solely the physical features of the property.
- If potential buyers were impressed by a home's kerb appeal, there would be more interest in buying it.
- Having a finished, tidy, and well-organized garage can set your house apart from the others.
- If you want to turn your garage into anything else, like a gym or a workshop, you should do it in a way that will make it simple to convert it back when you decide to sell your home.
- However, there are situations where an unfinished garage is unacceptable.
- Get professional advice before you make any moves.
- Having a finished garage can be a major selling point for potential buyers, even if it doesn't increase the value of the home much on its own.
- This is the case regardless of whether or not the finished garage adds to the resale value of the house.
- If you're not sure whether finishing the garage is a good use of your money or not, your real estate agent can help you decide.
- Renovating the flooring is a worthwhile investment because of its positive return on investment.
- Prepare the space for usage by installing a workbench and a pegboard to house your various tools.
- If there is a functional entertainment area, a buyer will likely be interested in it for the same reasons they would be interested in a workbench.
- So does a finished or converted garage affect the value of your home?Removing your garage door to turn it into liveable space may seem like a smart idea at the time, but it could hurt your chances of selling your home in the future.
- A completed garage is a nice addition to any house.
FAQs About Garage Renovation
Your home's value won't suffer if you finish your garage, but it also isn't likely to rise as a result of the addition of this improvement.
The value of your home could increase by as much as $5,000 if you instal a garage large enough for one car. A garage with space for two cars is even more desirable. If you decide to convert your garage into another room, you will lose at least that amount of money in the process.
If you have an attached garage that is adequately insulated, it can act as a buffer zone for your house, protecting the climate that is found inside the home and increasing the level of comfort in all of the rooms that are adjacent to the garage. Your home will lose more of both its heated and cooled air if it does not have insulation.
Your home's value can be increased without a significant increase in your expenses by applying a coating to the garage floor. This is due to the fact that using an epoxy coating to transform an otherwise uninteresting concrete garage floor into something more visually appealing does not require a significant financial investment.
A garage is considered finished when it has drywall covering the beams and gaps in the space. Insulation and electrical work might be present or they might not be. When a garage has been finished off, we sometimes call it a "converted" garage.