In my experience and through education, vacation home or not, 50% of the buyers looking want a garage. You could lose 50% of the buyer pool is the answer to to ramifications for tearing it down.

I would avoid removing the garage. In addition to all the great points made by the other posters, removal of the garage could be difficult depending on local regulations. If you remove the garage without a permit there could be financial repercussions.

Hi Sandy,

My opinion is that a single bay garage on a summer rental doesn’t make that much of an impact. Most people want a garage to shelter their car from the snow and/or a hobby space. If it’s a summer rental, I can’t imagine a trade mechanic or wood worker would be looking at this kind of home to do business or a hobby out of. And sheltering from snow isn’t applicable if its only used in the summer months. The exterior space that will be added will be more valuable, especially for a home used in the season of outdoor living in New England.

Most, and I say this as a general rule of thumb, buyers are looking for a garage. For example, I currently have two listing that do not have a garage and I have received comments from ALL interested buyers that the lack of a garage is an impediment to their purchase of the property. I have pointed out that in both cases adding a garage would add to the value of the property once it is purchased and described how the addition of the garage could be implemented on both properties without exceeding the value of like properties in their neighborhood. In general, their comments have been that they didn't want to take on the additional cost and therefore they were no longer interested.

I also have several buyer clients who won't look at a property that does not already have a garage.

My suggestion is that you seriously consider NOT removing the garage for the above rationale. It is a drawback to a future sale of the property but it does not really count with a rental opportunity as there the client is looking for price rather than long term ammenities. yard space is not as critical as a garage in almost any case that I know of.

Sandy,
I think it is important to look at the value of the space created, not so much the value of the garage. I would say that most people are going to be looking for a garage on a 500k home. However, if you intend to continue renting and will gain additional rent eg.(creating a screened in porch that increases the rent an individual is willing to pay) than the knockdown might make sense. If you are just creating open landscaped space I would not advise the move, as upgraded landscaping has little effect on appraised value. Have renters complained that there is a lack of yard space?

The value is likely tied the replacement costs (amount it takes to build). If you ever sold the property the new buyer could simply put the garage back. The removal of the garage probably won't have as much an impact on the rental as it might for the sale of the property.

Hope that helps!