The addition of a garage can provide a range of benefits for homeowners. Garages provide shelter for cars and other vehicles, not to mention added space to store tools, holiday decorations, and other household items. But adding a garage can also add to the value of your home, which can increase your equity and boost your return on investment when selling the property.
Real Estate Value and ROI
According to Remodeling Magazine's national Cost vs. Value Report 2013, the average return on a basic freestanding garage addition is about 63.7 percent. This means that if you spend the national average of $48,806 on a midrange 26-by-26-foot two-car garage, this would add about $31,091 to your home’s resale value. However, the more upscale your garage addition, the lower your percentage return. Upscale garages that include specialty storage units, upscale flooring and trim packages create a typical return of about 55 percent.
Adding a garage to your home is one of your best options for adding to the property’s resale value through improvements or additions. In comparison, a bathroom remodel recoups 54 percent of the project cost on average. However, a few improvements or additions create statistically better returns than a garage addition. For instance, a major kitchen remodel recoups 68.9 percent of the cost, while a wood deck addition will pay back 77.3 percent of the amount invested.
The true value of your garage addition is not recognized solely in the resale value of your home. There are several other ways you can help recoup the cost of adding a garage. For instance, garages often reduce weather-related and street damage to your vehicles. Garages also give you extra storage space, which might negate the need for you to rent or purchase a storage unit. You can also use your garage as a work space, allowing you to take care of many household repairs or yard work without needing to hire an outside contractor. If you’re not planning to move out of your home right away, you can consider these cost-recouping factors when considering a garage addition.
When you’re considered adding a garage to your home, you’ll need to decide between an attached or freestanding garage. Obviously, your home layout and lot size will be a major determining factor in this decision. Typically, an attached garage is less expensive to construct, as it shares a wall with your existing home. However, this cost-savings can be diminished if attaching the garage to the home presents any major construction problems. Many people prefer a freestanding garage because they keep dirt, grime, and fumes out of the main house entirely. However, if you live in an area particularly prone to inclement weather, an attached garage might be a better option, as you can then get into your car without stepping outside.
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