Garage Conversion Pro/Cons

4 Replies

BP Family, I'm currently evaluating a 3b/2ba fix/flip where we would be converting a 400 sqft 2 car attached garage into a master with bath / walk in closet. Will take the sqft of the house from 1200 to 1600. Will also add a mud room which would be connected to the new (relocated) laundry room next to the rear entrance. This will also allow me to maximize more space for the kitchen as we would be able to relocate the water heater and W/D. I see many upsides, but the biggest drawback would be the removal of a garage. Seeing if the obvious pros outweighs the cons. Happy to hear your experience and thoughts. Thanks.

@Samuel Garrett

The only way to evaluate it in my opinion is the cost vs value of what you're considering.  

Value with Garage To You = Market Value of Garage + Market Value of Smaller Property

Converted Value To You = Market Value of Larger Property - Market Value of Garage - Cost to Convert Garage (including the time value of money)

If converting does not increase the value of the property more than not doing it then there's your downside, too much time spent doing something not valuable.

If it is still worth doing and if the comps call for covered parking, maybe you can add a nice carport cheaply in a way that doesn't cheapen the fresh new house.

I agree with @Kuba F. but it also depends on the area.  Does all the homes have garages?  If the home is surrounded by homes with garages be careful, because it will take longer to sell the house!  Also, keep in mind when your running comps because a home with a garage is going to sell more than a home without.   A home without a garage is going to narrow your field of buyers, unless its common to the area.

thank you @Kuba F. and @Maria McCreless. 

I appreciate the insight and things to consider. My agent will run comps for a 4/3 w & w/o garage vs 3/2 w/garage.

Just driving by the area, i see a mixture of both. the homes in the area are priced between $90 - 105 sqft. so the added potential of 400 sqft has an upside of $30 - 40k. But I understand that doesn't mean much if there aren't any interest.

Again, i appreciate your insights. Thank you.