Should I do a garage conversion?

Question

I'm flipping a 3 bed 1.5 bath 1206 sqf with attached  2 car garage. My question is if I do a garage conversion to add more living space will it add value or should I spend the money else where. Any feedback would be great.

David Krulac · Answer

Account Closed

Be careful and check with your local zoning office to make sure that a garage apt is legal.

It may be outright illegal, or you might not meet some other zoning rule including setbacks, off street parking, or even having to upgrade water and sewer lines as well as utilities for the bigger loads.

Kris Haskins · Answer

wow great q,   I would say this all depends on the immediately surrounding houses.   Do they all hv garages?  Is so, may be best to just add or expand that half bath to a full sexy bath w ceramic tub surround.   Is all other props hv no garage, might be best to make it a 4/2bth if u can.  I typically convert my3bds to 4 bds if I can.   Seems to be less competition w 4bdrms as our market hs more 3bds than 4bds.  Good luck and if this helps at all pls vote for my post.

Brian Mathews · Answer

It just depends I think.  Some people want the extra room and some want a garage.  If it were me.  I'd value a garage over an extra room.  If I wanted a 4 bedroom, I'd just go buy a 4 bdrm with a garage.

Brett K. · Answer

Your market could be different but I'm an appraiser and I've never seen a conversion add value.  Typically the best done ones have a neutral impact at best (i.e. it won't add value).  I'd spend the $$ on a nice appliance package, decor, or a T.V. to through into the deal.

David Krulac · Answer

@Scott Hudson

Good decision and I like what @Robert Leonard said also.  I can't recall ever seeing a garage conversions that did not look amatuerish and didn't look like it was a converted garage.  The neighborhood and the price range really dictate the garage/no-garage issue.  But another factor leading to it being a flip and you want to get in get out and go home.

Account Closed · Answer

@Brett K. I just saw this post. I'm thinking about converting my detached garage (20 ft by 20 ft) into a living space (one bedroom, one bath, w/ kitchenette) also.

I'm leaning towards converting it because 1) I can get at least $900/month to rent this converted unit out. With $25k I have to put in for the conversion, my ROI on should be around 43%!!  ($900 * 12 months / $25,000). Would you still advise me against the conversion??

My lot is huge, so I think driveway parking should be fine. With 43% return... am I crazy?? What does everyone else think?

Brett K. · Answer

Benjie that sounds like a killer deal.  That's an animal that really doesn't exist in my town. I'd do it as often as possible as long as it was normal within the market segment.

Brian P. · Answer

Again it depends on the property and the area. Buyers want a garage in the areas I deal in. Now to be contrary to the appraiser, all my garage conversions made money and added value, but I wouldn't do it if I couldn't build a new garage. In my old area, 90% of the residents parked outside and didn't put the car in the garage but when they were buying they wanted  a garage, period And when selling you have to deduct the value of the garage you don't have.

Phil Z. · Answer

4 bedrooms sounds like a little much for a 1200sqft home.  3 bed / 1.5 bath with a 2 car garage sounds pretty ideal to me.

Scott Hudson · Answer

thanks for all the help. Im leaving garage as is and using money for better countertops.

Should I do a garage conversion?

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