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. What would be the adjustment? While that’s a solid sum of money, when you consider that a garage will bump up the value of your home, it makes financial sense. 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. Recent Home Renovations In markets like Cherry Creek, Downtown and Capitol Hill were parking can be difficult, the bay adjustment is closer to $10,000 per bay. The Appraiser’s research shows that a three-car garage typically sells for $3,000 more than a two-car garage. Short answer: get the three car garage! And in some older suburbs, a 3-car tends to be a tandem second stall, so adds very little value … Rebuilding a home with a detached garage at current prices might cost $200,000 or more in some areas. It's the best $5k you'll ever spend. Long answer: I bought my house many years ago, new construction, and made a choice to get the model with the 2-car garage instead of the one with the 3-car garage across the street because the price difference was $15k. The value of a 1-car garage is $2,000. A home with a 3 car garage will be appraised higher than a home with a 1 car garage with comparable features. Closed Sales are up +29.3% for September 2020 in which the number of units closed was 1,002 compared to 775 in September 2019, with an increase in cash sales of +28.6% compared to September 2019. Example: Comp #l has 3 bedrooms and the subject has 4 bedrooms, with the value of a bedroom being $800. If the comparable property is inferior in a feature you add value to the comparable. In some cities a 3-car detached brings the same value as a 2-car attached. The size of the garage, or if the home has a garage at all, will also contribute to the home appraisal value. Perhaps the subject property has a three-car garage and the aforementioned comp only has a two-car garage. The age and condition of a detached garage would affect how much value it adds to a home appraisal. New Pending Sales are up +35.2% and New Listings are up +10.0%. A New Garage Means Increased Home Value. Solution: Subject Comparable $70,000 No Garage -$2,000 garage $68,000 B. 12. Tandem bays are typically adjusted at half the value of full bays. For example, if you build a 2 car garage or a 3 car garage then you will notice that more buyers will be requesting for a showing. In general where a home buyer is able to park their cars will influence the appraisal value. have a garage. As a result, the net value of the comp can be increased by $3,000 for a total of $405,000 ($402,000 + $3,000). A basic attached garage will cost around $20,000. This question brings back memories. “A lot of buyers wouldn’t pay a dollar over list price for a finished garage, unless the buyer is a car guy or someone who’s very serious about the garage,” explains McKee. Altogether, property value will significantly increase once you build a custom size garage. In practical terms that means, what a real estate agent, homeowner or buyer would call a 2.5-car garage is reported on the appraisal form as either a 2-car or 3-car garage. Typically for a suburban home the value of the garage is going to be approximately $4,000 to $5,000 per bay. In some of my cities (Minneapolis-St. Paul suburbs), lack of a 3-car garage drops the value $10k-$15k. Aside from bumping up the home’s value, a garage will also prove quite useful. 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