Sunday, 29 March 2020

Does Adding a Garage to a House Increase Home Value?

Written by Posted On Sunday, 02 April 2017 03:57

When looking at adding value to your property there are a number of different options that will give you that competitive edge and fetch the highest possible price should you choose to sell. While some options will be dependent on the size of your block, council restrictions and the market in your area there is one thing that an increasing number of homeowners are opting for that doesn't need to break the budget. The humble shed.


While any decrepit or unsafe structure will almost certainly decrease the value of your place, a newly constructed shed or garage in a carefully considered space can move your property to the next level.

When building a shed you're not only adding value but adding potential. A safe and secure separate garage can be modified to meet the needs of a large cross section of buyers and they will see that. An empty shed can be a blank canvas from which they can use to suit their needs.


Shed conversions are becoming more and more popular, as well as the trend for children to stay living in home past their teenage years while they study or save. A home with a shed can easily be converted into short term accommodation or a private guest room for visitors.


Garages can add both utility and lasting long-term value to your property. The question for many homeowners is, exactly how much value do they add? When you resell your property later, how much of the initial investment can you expect to recover? Read on for more details about how a garage addition can influence your real estate property value.


Why Build New Garages and Sheds on an Income Property?


There are many reasons to build a new garage or shed on your property.

Both garages and sheds increase the amount of storage space available on the property. This is greatly beneficial, as storage space is one of the most important features that can attract potential home buyers to make an offer on your property.


Garages house your cars and other vehicles, and at the same time they preserve the value of these important possessions. So indirectly, a garage can add significant value for your household if you plan to live in your home for some time before selling it. Parking your car in the garage can prevent a wide range of losses to your vehicle, including storm damage, vandalism, break-ins, hit-and-run accidents and theft.


Garage Addition Cost vs Potential Return on Investment From a Garage Addition


In their 2015 remodeling cost vs value report, Hanley Media estimates the average job cost of a garage addition to be $52,382 in the USA. This varies from region to region, with the average cost on the west coast being more like $59,348, and the average cost in the middle Atlantic region being more like $55,846.

Upon resale of the property, a garage addition could expect to receive an estimated average of $33,938 in resale value for the property owner. On the west coast, the estimated resale value is more like $47,279. In the middle Atlantic region, it's more like $30,932.


What does all that mean?


On average, upon resale, property owners in the USA can expect to receive back about 64.8 percent of their initial upfront investment on a garage addition. In the west coast region, this figure is even higher at 79.7 percent. In the middle Atlantic region, this figure is substantially lower, at only 55.4 percent.

For property owners in some areas of the country, this is considered an excellent return on investment; you can recover a significant amount of the upfront costs of the building project. For homeowners who plan to live on the property for some time before selling it, a garage addition could be a sensible tangible investment well worth considering.


Virtual Shed Builder Apps and Software


Want to try designing different variations of garages or sheds for your property, before you commit to actually building anything? If so, it's worth taking a look at various shed builder apps and computer programs. There are a wide variety of different tools available that can help you visualize how your garage or shed would look, as well as the garage addition cost.


For the handyman, a shed is a secure storage for tools or work projects. The ever popular "man cave" is also an option.

Families will relish in the extra storage space provided by a shed or garage as well as the potential for the space to be used as a teenager's retreat or rumpus room down the track.

Many who operate businesses from home will see the necessity of a detached shed or garage from which to operate out of.


So long as you do the necessary research for the area you live in to ensure you build what is suitable for the market, you can almost guarantee that this will be a value adding addition to your property that can compliment your home nicely.


Now in answer to the question of "how does a garage addition affect real estate property value," here is the main takeaway: For most homeowners, a garage addition will positively influence the resale value of a home, and will add to its appeal when it comes time to re-sell the home.


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Sarah Smith

Sarah works with many real estate business owner to upskill their current license to further their employment prospects.
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