Home Selling in 94002>Question Details

Anonymous, Other/Just Looking in San Francisco, CA

How does a garage conversion impact the property value of a home in the Peninsula?

Asked by Anonymous, San Francisco, CA Tue Oct 16, 2007

I have a 3 bedroom 2 bath home in belmont with a 1 car garage. i am thinking about converting the garage into another bedroom. I was wondering how a garage conversion would impact resale. Will this conversion make my home less desirable without a garage or will this extra space be considered valuable. - thank you

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17
San Francisco, that would depend on your buyer. Please consider this...in our area of Port St. Lucie, Florida one of the stumbling blocks we face is a conversion that was not permitted by the city/county. This issue has put a lot of contracts in jeopardy. Please, before you do anything, look into your local building codes and make sure you are not clouding your title!
Ron and Debbie Albert
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
1 vote Thank Flag Link Fri Feb 26, 2010
Hi Anonymous, I guess that would depend on how the garage flows with the house. People always like more space but maybe based on your area, people would prefer a garage more. maybe have the garage professionally done to where it looks good on the inside and can easily be used as a bonus room or garage.
1 vote Thank Flag Link Tue Oct 23, 2007
Leave the garage as it is if you want to sell. The additional room will not increase your value. It will only make things worse.
1 vote Thank Flag Link Mon Oct 22, 2007
This will have a negative impact on the saleability of the property.

Most buyers today want a two car garage with a three bedroom, two bath home. By adding a 4th bedroom you are creating more liveable space and taking away the parking you have.
1 vote Thank Flag Link Mon Oct 22, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
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Would definitely have a less than desirable impact on resale value. By doing it, you eliminate probably the majority of buyers who would prefer garage space to a 4th bedroom. If it was a 2 car garage and you were converting one side to a room of some sorts, it would be a little bit of a different story.
1 vote Thank Flag Link Tue Oct 16, 2007
It definitely will have a negative impact on the Peninsula. As "Realtyexec" mentioned - there are many factors so the amount will vary dependent on specific neighborhood and other factors.
Web Reference: http://www.cimpler.com
1 vote Thank Flag Link Tue Oct 16, 2007
Artur Urbans…, Real Estate Pro in Burlingame, CA
MVP'08
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In almost all instances, the impact will be negative. If there is limited parking in the surrounding neighborhood and/or the conversion undoes the functionality of the garage, the negative impact will be even more severe.

If you choose to convert a garage for any sort of use other than it's intended purpose of storage, try to make the changes minimal and easy to undo.
0 votes Thank Flag Link Fri Apr 26, 2013
Hi,

12 years in the business, and as a very "active" agent, I have never had a prospective Buyer get excited about a garage conversion. It may soung self-serving, and I apologize for that, but now is the time to sell and get more space...if you need it. Belmont, San Carlos, etc, very low inventory for Buyers = High Prices and Great Terms for you as a Seller. Please let me know if you wish to discuss options. 650-921-9855

Regards,
Cory
0 votes Thank Flag Link Thu Mar 21, 2013
I would not suggest it, in San Francisco garage space is a premium, renters will pay more for a home that has a garage vs one without, buyers look at a garage a large bonus value to a home without a garage, this all adds to increased value to you in the long run.
0 votes Thank Flag Link Mon Mar 18, 2013
It certainly depends on the Real Estate market at the time of sale. When many buyers are actively looking for property, a converted garage will not make much of a difference., either to the good or bad. It would likely be quite easy to convert back if the new home buyer wanted the parking area.
Be aware that often gas fired furnaces and water heaters are in the garage and converting this space to a bedroom is not advisable.
0 votes Thank Flag Link Mon Mar 18, 2013
First of all, you will not be able to get the full amount of your investment in the conversion back when you sell the home. At best, you will get 20-30% of the money you spent on the conversion back.

Second, you must establish whether or not you are doing a legal or illegal conversion. A legal conversion of the garage requires permits and the city to allow the change, which might not be the case. You will have to consult a contractor and the city for that to be answered. If it is a legal conversion, you might be able to show the increase in square footage but not if it is illegal.

Third, you are taking away parking or storage. Adding a bedroom may help in one sense, but you are taking away another huge component of a home. At best it would be a wash but likely you would decrease your value.

This is a bad idea...to be honest. Spend your money on things that will give you a better return on your investment.

Swap out electrical plugs if they need to be updated and change the light switch plates if they are old and yellow.

Invest in an interior and exterior repaint.

Add recessed lights if they aren't currently there.

Invest in carpet cleaning or new carpet.

Patch leaks in the roof.

Update the landscaping and fencing to give our home great curb appeal.

Those are small items that have a huge affect on your eventual sales price. Spend your money there and you are almost guaranteed to get your investment back if not more.
Web Reference: http://www.atlistings.com
0 votes Thank Flag Link Thu Apr 1, 2010
It doesn't. The new policy is that as long as it doesn't cause a danger (with faulty work), they remove it from the living space calculation and appraise the house as normal. There is no value hit for garage conversions.
0 votes Thank Flag Link Fri Feb 26, 2010
If you need the fourth bedrrom you can convert it but when you want to sell you should reconvert to a garage.
Ofcourse it depends on the neighborhood but I have shown houses where the garage was converted and buyers did not want the room, they preferred a garage.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Wed Feb 24, 2010
It sounds like a nice property and I can see why one would like that feature, but this negatively impacts financing opportunities for potential buyers as it will considerably limit the selection of recnelty sold comparable properties that most closely match yours. The appraisal will go through a review with any lender and no doubt be devalued. Any buyer would best make certain that if the purchase contract on this property includes solid appraisal and mortgage contingency clauses.

Thanks for the question!
0 votes Thank Flag Link Tue Feb 23, 2010
Best contact a local Realtor who can review area with you or appraiser.

Dallas are most families won't purchase a home unless it has a garage due to safety issues. Consider another area of home for addition than garage conversion

Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 23, 2010
Adding livable space is always a good thing ! Why should the biggest room in your house be for your car right !
0 votes Thank Flag Link Sun Feb 21, 2010
Depends on a couple of things. If you take out the garage is there enough parking on the street. Are you planning on doing this by yourself or with permits using a contractor. Also do most of the homes in your immediate area have the garages converted.
0 votes Thank Flag Link Tue Oct 16, 2007
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