Home Buying in Salem>Question Details

David Nuss, Real Estate Pro in Salem, OR

How do 3/2 homes with two car garages compare in value to similar 3/2 homes without a garage? Should a buyer be concerned about future value?

Asked by David Nuss, Salem, OR Sun Jan 31, 2010

The listing broker is telling the buyer that a garage doesn't play a role in future resale value.

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Hi Dave,

I agree with Melina on this one. When the buyers turn around to sell this home, they will be competing with other homes that are 3/2 with a garage. Is the home located in the Historic District? Even if a potential buyer doesn't plan to use the garage to park their car in, they still will want to use it for storage. The majority of my buyers through the years have made having a garage a priority on their list of what they want in a home. See if you can pull some comps for 3/2's with and without a garage. Also, check the days on market for those without the garage.
2 votes Thank Flag Link Sun Jan 31, 2010
Well it's the listing broker's job to sell the house. The statement is false, but maybe they really think it to be true. That's why buyers need buyer agents.

The only areas I think where it might not have as big of an impact is in the Historic areas, but most people like a garage for their stuff. Garage's definitely increase the value of homes.
1 vote Thank Flag Link Sun Jan 31, 2010
My experience is that homes without a garage will almost always lose out to a home with a garage in any sale. Until the current buyer demand for garages changes, which won't happen until we Americans get rid of cars and all the stuff most of use tend to accumulate, garages will be an important factor in picking a home.

As the VISA or is it Master Card commercial says - Priceless. You can put a price on building a garage on a home without a garage, but when you have two homes with identical features - the home with the garage will most likely always sell first.

How do you put a value on that? You will need to decide that one for yourself.
0 votes Thank Flag Link Sat Feb 27, 2010
David! I think you know the answer. For me a 2 Car Garage is a Cost issue of about $25,000. I think it hurts the value more then that unless it has offsetting features. So I would say It can be about 15-20% in Value change in many case.

Hope that helps;

Dirk Knudsen
Re/Max Circle of Legends
Web Reference: http://www.theknudsens.com
0 votes Thank Flag Link Thu Feb 4, 2010
Dianne is right on the money... ofcourse it has value... any agent that says an ammenity has no value should be shown the front door..
0 votes Thank Flag Link Sun Jan 31, 2010
David
Without a doubt they add value to the home but more than that you will seriously limit your buying pool when it comes to resale with or without added value. A perfect example is that a home by a freeway takes much longer to sale and for less monitary value due to the fact that most people do NOT want to live right next to a freeway. Similar circumstances for a garage, some people no matter how much they like a house will not buy it and sometimes will not even look at it without a garage.So IMHO, not only does it have dollar value it has basic esential value for most buyers.

I have many buyers that will not even look at a house with only a 2 car garage. They pass up some beautiful homes but the insist on a 3 car garage... it takes priority.
0 votes Thank Flag Link Sun Jan 31, 2010
Hi David,

Chris Courtney here and happy to lend my opinion. I am a State Certified Residential Appraiser, 16 years...life long resident to Oregon too. Here is the quick summary:

1. Garages add value. You can ascertain at minimum cost new less some opinion of depreciation. New garages (either attached or detached) are typically built at $20 to $50 per square foot, depending on quality, finish, doors, etc.....you understand this I would imagine.

2. We live in a RAINY state...any form of covered or enclosed storage first adds appeal, which equates to value. If you consider having identical homes situated next to each other, both for sale, but only one having a garage or carport...you would very reasonably expect a higher price for more improvement...not to mention a quicker marketing time.

3. People like cars, have cars, and want to protect their vehicles. If a buyer can finance a $10,000_plus amenity in pricing to protect their vehicle...so will the next buyer. Meaning, resale is stronger and protected. Most double income families have two cars.

4. Location does not matter. Garages are added improvements that increase value and market appeal. If there is a garage conversion, you risk not obtaining permits to qualify it as true living area, and most people leave it at slab grade. I tell all my clients that converting a garage is a solid answer for adding additional bedroom, family room, etc....but to do it correctly (frame a floor so it is AT GRADE.....and spend that additional $5,000 or so to add a carport at minimum, garage at maximum.)

Hope that helps! Visit http://www.HouseNow.com and plan to see some exciting offerings from us as we enable your listings to be synced with your contact info for free...broker blogs, search engine optimization...to bring you the client. Our website is generating significant traffic and we are excited to bring this traffic directly to you and your listing. Meanwhile, reach out anytime...I live in Eugene and travel to a majority of market areas covered by RMLS and WVMLS.

Regards,

Chris Courtney
Pacific Valuation Group
State Certified Residential Appraiser
http://www.HouseNow.com - founder
(541) 345-7992 TEL
(541) 912-1405 CELL
Chris@HouseNow.com
Web Reference: http://www.HouseNow.com
0 votes Thank Flag Link Sun Jan 31, 2010
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