Do Garage Conversions Make Financial Sense?
What is the most neglected area of your house?
The answer for most people is the garage. Could your underutilized garage serve better purposes than keeping clutter or junk? Or, perhaps you need an additional room in your house for reasons such as creating a home office, recreation room, guest room, or kids’ room.
Attic and basement conversions are top renovation projects in American homes, as are garage conversions. However, does it make financial sense to do a garage conversion?
Garage conversion: is it worth it?
Do all home renovations pay off? While some home improvement projects can be a blessing at the time, they can become a curse in the long run when you decide to sell your property. A home renovation, if not thought out and executed well, can decrease your property’s value.
When purchasing a home, most buyers factor in the availability of a garage when making their decision. In fact, according to a recent survey by the National Association of Home Builders, a garage appears in the most wanted list of American home buyers’ features.
Since most people put a premium on a garage, converting yours into something else may not be the best idea under certain circumstances. Perhaps you need to explore other options, for example, “sell house as-is” and find another home that fits your current needs.
Why a garage conversion?
The US is facing a record housing shortage, with fewer units on the market for sale today than decades ago. Thus, for some people looking for additional space, purchasing a larger home may not be an available option. Here are good reasons why you might consider garage conversion:
Drawbacks of garage conversions
The obvious downside is that the garage conversions will make you lose the opportunity to use the space to keep your car. Moreover, all the stuff you would otherwise keep in the garage will now be your new headache. If your house lacks a storage shed, a basement, or extra closet space, a garage conversion might be impractical.
What are the costs?
Construction experts agree that the budget for a professional garage conversion can range between $10,000-$25000, or even more. The three main variables are electrical work, plumbing, and HVAC systems.
Depending on how you design your living space, plumbing budgets can quickly become huge. If you’re converting your garage into an area where you can cook or have a bathroom, be ready to spend $2,500 or more on the plumbing installation.
While your garage will have basic electrical wiring, you’ll likely need an upgrade. Most garages have a single light and electrical receptacle. You will probably have to add at least one more 20 amp electrical circuit, including receptacles and additional lighting. Hiring an electrician to add proper electrical receptacles and lighting can be expensive.
To make the space liveable, you will need ventilation, cooling, and heating systems. The cost will vary greatly depending on the ability to extend your home’s existing systems to the garage. If extending the system is not possible or practical, a new system to just service the garage will be expensive. You will also have the additional cost for the electrician to bring power to the new equipment.
Moreover, the garage door is poor at keeping heat out during the summer and keeping the heat in during the winter. You will need to build a solid wall with an appropriate exterior finish to match the existing house.
The bottom line
Whether converting a garage makes financial sense will depend on whether you plan to stay in the home long-term or sell soon. If you plan to remain living in the house for many years, converting the garage into a living space will add a great deal of enjoyment to your home.
However, if you plan to put your house up for sale and move out in the next few years, it probably won’t make financial sense to do a garage conversion.
Sell Home As-Is to OutFactors!
This information is provided by OutFactors, a home cash buyer. At OutFactors, we buy houses as-is for the cash and close quickly—within just a few days. The process is extremely simple and convenient. To get the highest cash offer for your home all you have to do is fill out our simple 4 questions online form or call us at 800-420-7030. Offers are always fast and free!
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Do Garage Conversions Make Financial Sense | OutFactors – Dallas Fort Worth, Texas