How Will Making a Room in My Garage Affect My Home Value?
There's no firm rule for whether converting your garage into extra living space will increase your home's value. The effect of conversion depends on several factors, such as the parking available on the property and the garage's current use. It will also depend on whether converting your garage is legal, as in some city, county or zoning districts, it's forbidden.
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Legality
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Before making any plans for converting the garage, check that it is legal to do. Many cities don't allow garage apartments in single-family zoning, or don't allow you to rent them out to someone who's not a relative. Single-family zoning is supposed to be low-density housing, and officials are often concerned that garage conversions increase the number of residences per acre. Even if conversion is legal, you'll have to apply for a permit and comply with city legal requirements, or you could face code-enforcement fines.
Practicality
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If your house comes with little driveway space, taking away garage parking may reduce the home's worth. On the other hand, if you use the garage for storage as many people do, converting it may not make parking conditions any worse. Conversion can be much more practical than adding on to your house because you already have walls and a floor in place. However, the garage may not be up to the demands of living space, which could require insulation and upgraded wiring.
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Value
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A garage conversion's effect on home values varies from neighborhood to neighborhood. If it's a crowded older community where living space is in high demand, an extra bedroom or home office may be worth much more than a garage. If parking is hard to find -- the lots are small and the homeowner's association doesn't allow on-street parking -- a parking garage might be more valuable. If you're not sure, talk to real-estate agents or your neighbors about what's currently marketable.
Considerations
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Depending on the size of your garage, conversion doesn't have to be all-or-nothing: You might be able to build in an apartment over the garage, or convert part of the floor space and leave room for one car. If you think it might be worthwhile, contact remodeling professionals for estimates. A conversion that costs $10,000 and adds $5,000 to the overall value might not be worth undertaking
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