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Thursday, June 18, 2015

Garage Addition: Return on Investment

Garage Addition: Return on Investment
Article From HouseLogic.com
Photo: Flickr CC License: SupremeCrete
On average, a garage addition recoups about 57% of the investment, with the highest rates of return on a basic rather than an upscale job.
Building a garage addition is a great way to gain comfort, convenience, and storage space. It's also a reasonably good investment. According to RemodelingMagazine's latest Cost vs. Value Report, a home owner who invests the national average of $57,824 in a midrange, two-car garage addition can expect to recoup about 57% of the cost at resale-a higher rate of return than an added-on bathroom () or sunroom, and on par with a new family room or master suite.

A garage addition makes especially good economic sense in the Pacific region of the country, where home owners can expect to get back almost 66% of the cost of a midrange project, although garage construction costs are about 20% more than the national average. Returns tend to be lowest in the country's midsection. In Des Moines, for example, the same garage recoups less than half its cost.

As a general rule, you're likely to recover a higher percentage of your investment if you build a relatively basic garage--one with open walls, an unfinished concrete floor, and shelves for storage--rather than one with interior drywall and trim, an epoxy floor coating, and designer storage solutions. Such an upscale project runs a national average of $86,347 and returns around $45,000, or about 52%, of its cost at resale.

But there are financial considerations to adding a garage that go beyond resale value. Protected from the elements, your vehicles will stay in top shape, which could make them more valuable when you sell them. If you include workshop space, you'll be able to do many home repairs yourself, saving on the cost of pros. And if you outfit the garage so that it's easy to access stored items, you can save leftover materials, reducing the cost of future projects.

National average cost, 26 x 26 ft. midrange garage addition:
Job cost: $57,824
Resale value: $33,089
Cost recoup: 57.2%

National average cost, 26 x 26 ft. upscale garage addition:
Job cost: $86,347
Resale value: $44,987
Cost recoup: 52.1%

Regional info:

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2012. All rights reserved.

© 2015 Dan Benton
Dan Benton - Realtor with Real Estate Brokers of Alaska
1577 C Street, Suite 101A., Anchorage, AK 99501
Phone: (907) 727-5279

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