How to selling a house with a large garage

600SL · Dec 25, 2020

As life would have it my daughter is getting married and I am that one oddball person that will have to retire up north to CT to keep the other half happy. I was always well aware the the cost of the garage would not be recouped if I sold the house but now I'm in the position that I will need to sell and I'm looking for ways to minimize the damages, especially since houses in CT cost more to begin with.

First thing I did was contact the real estate agent that sold me the house and she told me the house itself is worth 350K and the best she could do is put it on the market for 380K with the garage. The garage cost 92K to build. It is an 48 x 30 x 10 foot steel building on a 6" reinforced concrete slab, insulated and with heat and AC. The build can be found at the link below.

I got the feeling the real estate agent had no idea how to sell this type of property so I'm looking for alternative ideas. Rather than someone who will just give me credit for a house with a 2 car detached garage and workshop.

My feeling on this, Is that I need to find a buyer the is willing to make the same decision I made when I built the garage. That is to go in knowing that the property is worth far more than the real estate agents and banks will give credit for but worthwhile, when considering what you do with it. And in this case far better than purchasing a property and having to build a new garage on it.

So I invite your thoughts on the best way to sell this property.

https://garagejournal.com/forum/showthread.php?t=230835

Benw455 · Dec 25, 2020

I would find a new agent!

firebirdparts · Dec 25, 2020

There are some national systems of car guy real estate. I think carproperty.com has been around for a long time. I may be remembering something else. Using google I also see gearhead homes, but I’ve never heard of them before. Hemings does real estate listings.

larry4406 · Dec 25, 2020

I think you stick with your guns on what you think (realistically) it is worth. A car guy will be your customer.

I had the same situation with my prior home and nice detached shop.

Bill Bowman · Dec 25, 2020

While I have no first hand information for you, I am interested in this subject. I have heard there are agents that list homes with "special" garages also. Watching.

jdsac · Dec 25, 2020

It's your house- all the real estate agent cares about is a commission. List it at what you think & wait, unless you're in a hurry to sell. It might take a while, but there is always someone that is looking for what you have.

If the agent won't take the listing at your price, find one that will.

Buckgnarly · Dec 25, 2020

I think you are the ONLY person I have ever heard of who moved to CT from the Carolinas....I know a TON of people that have gone the other way, one of which is how I got my 10k Bendpak for 1200 bucks!
Good luck anyway, maybe look to see if someone in CT would do a straight trade? :bounce:

nadogail · Dec 25, 2020

Property is worth what a willing buyer will pay a willing seller for it; no more & no less.

Your Real Estate professional knows they will get their commission only when these conditions are met; so she may be trying to get you to lower your price so that the deal an be made. The Rel Estate Pro , IMHO, has their own and not necessarily your interests in mind.

She will get paid only when the property is sold, even if you are not happy with the deal. From her viewpoint, no sale means No Payday.

Bent Handle · Dec 25, 2020

Appraisal becomes a problem if the prospective buyer needs financing. Otherwise, yes, a property is worth what someone is willing to pay for it.

matt_i · Dec 25, 2020

Only been down the road as a buyer.

But, the shop spaces always seemed like a 1-liner addendum in the MLS description...e.g. "30 x 40 pole barn" with one pic of the exterior of that building.

Conventional wisdom says that location, kitchens and bathrooms sell your property, but I feel like getting that shop space higher in the ad will help find a like-minded person. Imo plenty of middle aged guys out there who are suddenly single and some percentage are potentially looking for that setup.

I wouldn't expect more than 50% of your investment to be returned on the shop though.

ace10 · Dec 25, 2020

In my mind, getting 25 cents on the dollar for hobby buildings would be a fair and reasonable expectation.

Depending on your specific neighborhood, a steel-sided out building may actually be a net negative to the property value.

I would speak to perhaps three local agents and see what they have to say. It costs you nothing.

On the topic of retiring to Connecticut... are you friggin crazy? :eyecrazy:

Everything will cost more and taxes are among the very highest in the country. I hope you and your wife have really, really thought this out. I know it's a tough decision.

Good luck.

ddawg16 · Dec 25, 2020

I'm going to be in the same boat if I ever sell.

You will just have to be patient for the right buyer.

Maybe make a video of it and post it on YouTube.

All you need is that one guy who wants a big garage.

LB-1911 · Dec 25, 2020

600SL said:
As life would have it my daughter is getting married and I am that one oddball person that will have to retire up north to CT to keep the other half happy. I was always well aware the the cost of the garage would not be recouped if I sold the house but now I'm in the position that I will need to sell and I'm looking for ways to minimize the damages, especially since houses in CT cost more to begin with.

First thing I did was contact the real estate agent that sold me the house and she told me the house itself is worth 350K and the best she could do is put it on the market for 380K with the garage. The garage cost 92K to build. It is an 48 x 30 x 10 foot steel building on a 6" reinforced concrete slab, insulated and with heat and AC. The build can be found at the link below.

I got the feeling the real estate agent had no idea how to sell this type of property so I'm looking for alternative ideas. Rather than someone who will just give me credit for a house with a 2 car detached garage and workshop.

My feeling on this, Is that I need to find a buyer the is willing to make the same decision I made when I built the garage. That is to go in knowing that the property is worth far more than the real estate agents and banks will give credit for but worthwhile, when considering what you do with it. And in this case far better than purchasing a property and having to build a new garage on it.

So I invite your thoughts on the best way to sell this property.

https://garagejournal.com/forum/showthread.php?t=230835

Possible option -

Gearhead Homes is the premiere real estate team for gearheads, specializing in selling homes with big garages and/or custom-built garages.

We are the Big Garage Experts!

https://gearheadhomes.com/

unslow1 · Dec 25, 2020

Having problems with one right now. It's listed as a 2 car garage and it's actually closer to a 6 car. Multiple realtors have said if you list it as a 6 car no one will ever come look at the house. They thought the same about a couple of other properties in the past our family has sold. The large garage or pool in the case of one really narrows down potential buyers to much. Unfortunately they were right in both previous cases. One we filled in the pool and it sold very quickly. The other we got less than half what the properties on either side brought. This problem had a lot to do with me not building a second taller garage on the property I'm currently in. I knew going in I intend to sell it and don't want to make it a tough sell.

justanengineer · Dec 25, 2020

The realtor is being generous IMHO. You paid $90k for a $30k building, she’s giving you $30k on the valuation for it which is better than what most would and likely more than what a buyer will eventually give for it. Generally outbuildings add $0 to property value.

I’m sure it’s no consolation but a neighbor is dealing with similar. Their house and property is almost identical to our current 1950s brick ranch. We paid $230k last year. They’re asking $425k atm based on overpaying $300k a few years ago and putting $100k into renovating. Ultimately it’s still a 1950s brick ranch with limited appeal like your building. Most realtors wont deal with overly unrealistic seller expectations bc realtors sell themselves based on reasonably fast sales.

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Bent Handle · Dec 25, 2020

I looked at a property 5 years ago with a nice shop, but the selling agent didn’t know anything about it and some of it was cobbled together. I didn’t want someone else’s project so I just moved on. As a buyer, a separate flyer/book on the shop during viewings would help. I’d plan on putting together a summary sheet with costs right on it along with a more detailed binder.

SarcasticDwarf · Dec 25, 2020

nadogail said:
She will get paid only when the property is sold, even if you are not happy with the deal. From her viewpoint, no sale means No Payday.

I would also add that the realtor doesn't care what price you get, only that it sells with as little work on their end as possible. The commission differences between $300k and $350k mean little.

loganb · Dec 25, 2020

From what I've seen, you're probably going to be disappointed if you expect more than 50 cents on the dollar from the avg homeowner buyer. If time is on your side you may be able to wait for the right buyer which may actually be someone with a small business that they could put in that building vs a garage.

As pointed out, appraisal is going to be a problem for most buyers. Lenders have a very good idea of what they can get out of a property if it goes sideways, and detached structures like that add pennies on the dollar to that price. As a result thr buyer has to bring substantially more cash to the table to do that, and today's ultra low interest rates discourage that more

The best succes I've seen on getting money back here is being able to sell the house to someone with an income generating business currently renting space from others or needing more space that your building will work for. This makes the lending work out better and gives more financial case for recovery of money on the shop, zoning may come into play though depending on the area. May be worth a discussion with a commercial real estate firm or the local small business/chamber of commerce to see if they know anyone in search of such a space

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Jagmandave · Dec 25, 2020

Where are you in North Carolina? My daughter lives there and I need a shop.....

niget2002 · Dec 25, 2020

We didn't pay anything extra for the house we bought last year with both a pool and shop.

Unfortunately neither pools nor shops add value around here.

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ZRX61 · Dec 25, 2020

Send the wife up north, keep the garage.

Bent Handle · Dec 25, 2020

ZRX61 said:
Send the wife up north, keep the garage.

For the win!

unslow1 · Dec 25, 2020

niget2002 said:
We didn't pay anything extra for the house we bought last year with both a pool and shop.

Unfortunately neither pools nor shops add value around here.

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Same thing around here. Just because I like both of them doesn't mean it will add value when time to sell.

samss · Dec 25, 2020

In-law's had a similar situation. Needed property with a shop and found it. Built new house close by and had trouble finding an agent that thought their asking price was realistic. 2500sqft house, 2000sqft shop on 4 acres. Finally found an agent and it sold in two days after listing for their asking price. The new family needed acreage for livestock and the dad has a Handyman business. The shop was perfect for him. Figure out your value and hunt for an agent that is willing to work for a commission.

Jinks · Dec 25, 2020

Do your own research on what similar homes are selling for in your part of the state. NEVER take a realtor's word for value unless you are well acquainted with the realtor & their ethics. Even if you are make them attempt to get your price for a reasonable period of time.

The last house I sold had a two car garage on the house, & a two car shop at the back of the property. The realtors gave me low ball listing prices & complained when I set a higher price. It took a while to get any offers, but I got two full price offers. I settled on the one I thought could actually make it to closing even though the other one offered a little more on a second bid.

My realtor never stopped crying "lower your price", even after I knew the buyers down payment (33%), his employer (US Navy), & his lender (USAA). She called me a few days before closing & tried to tell me to lower the price because "he may not be able to qualify at the level the lender wants"!!.. :shocking:

I told her that if she EVER said "lower the price" in my presence again I would not come to closing & would just keep the house till I found another realtor & buyer! We never spoke again, even at closing. I got my price, I was happy, & the buyer was happy. I don't know if she was looking for a kickback from the buyer, some other scam, or just plain stupid. I've met two realtors in my life that I trust a little more than a used car salesman. The rest are scum.....

pbon · Dec 25, 2020

When you built it, you should have realized you would never get anywhere remotely close to your costs out if it if you sold. I spent $65k renovating my barn and probably added $20k to the value of the house.

Maybe if yours is built with the right frame to store a motor home, you could market it as such. Most shops aren’t built that way because it costs more.

Ralf11 · Dec 25, 2020

Any guy on here would buy it at a premium.

Normal people won't.

Voi · Dec 25, 2020

Didn't have time to read your link or the other replies.

I just sold a 30 year old spec house with a high end remodel and an oversized three car garage.

Realtor was concerned about what we had in the house but had me write a little booklet that went along with the house explaining everything I did.

For the garage, I emphasized overkill on the lighting, the number of 20 amp and 220V circuits, type of heater, built in cabinets, closets, etc.

The realtor took really good pictures that really emphasized the size of the garage.

House sold in two hours for more than $100K over the price originally discussed after a bidding war between two garage guys.

finn · Dec 25, 2020

Bent Handle said:
Appraisal becomes a problem if the prospective buyer needs financing. Otherwise, yes, a property is worth what someone is willing to pay for it.

The appraisals are the real stumbling block, like Bent Handle states.unless you find a buyer willing and able to put a large down payment on the property.

Since the real estate crash 12 years ago, lenders no longer have the flexibility to make loans without an appraisal, and the appraisal is based on local comps. The local comps are unlikely to value your shop at its actual cost.

Basically, you’re upside down on the shop and will have to take a loss unless all the stars line up. You can list it at whatever you want, but you are really limiting your market and odds of closing if you hold out for something above a legitimate appraisal value.

vavet · Dec 25, 2020

You might be able to find a realtor who will list whatever you want in the MLS for a flat fee. That will be the end of their involvement. At that point, you’re fielding all the calls, which is not necessarily a bad thing, ime. The upside is that once it’s in the MLS, it also populates 3rd party sites like Zillow and realtor.com.
If you’ve never read the Freakonomics book, they have a chapter on real estate agents and their commissions that others here have alluded to. The difference in their commission between a $320k sale and a $350k sale is $4800 and $5250. That’s assuming they earn 1.5%, which I understand is higher than usual. 6 % is the total commission split between listing and selling agents, then those agents have to split that with their broker in a 50/50 or sometimes a little less to the agent.

Don1357 · Dec 25, 2020

In many parts of the country an accessory building is close to worthless. I know, I built me an awesome accessory building in MD and at the time of sale it was pretty much worthless.

We love these things, so we think "this building here has to make my property sooo attractive it will sell for an extra gazillion bucks!". Except that appraisal will be cruel to your accessory building, and it will make it pretty to a small subset of the market, not to a large one.

Say one in ten people would love to have a 6 car garage, while it will be a turn off to half of the rest with the other half indifferent. Guess what; your house is not attractive to half of the entire market, and the overwhelming majority of the other half are just indifferent and not willing to pay you extra for the garage. Heck say two garage people are interested, they couldn't even raise the price all that much because most likely than not they are financing the mortgage, so they can't go over appraisal value. In a lot of cases the realtor is just trying to tell you something you don't wanna hear.

If it is a residential area and not a garage (attached or detached) we ain't seeing that money back.

unslow1 · Dec 25, 2020

We were told the one place would be worth more and sell faster if we tore down one of the out buildings because it was old. That was the one we got so little for in the earlier thread. We listened the next time and filled in the pool to get it sold.

66cj225 · Dec 25, 2020

Same boat as Jagmandave......Need garage doors, volume for smoke and saw dust and detached for fire protection

farmall400 · Dec 25, 2020

Buckgnarly said:
Good luck anyway, maybe look to see if someone in CT would do a straight trade?

48x48 on 5 acres in Ct. I'm listening. :bounce:

Bent Handle · Dec 25, 2020

Garagejournal match making!

James-W · Dec 25, 2020

nadogail said:
Property is worth what a willing buyer will pay a willing seller for it; no more & no less.

Your Real Estate professional knows they will get their commission only when these conditions are met; so she may be trying to get you to lower your price so that the deal an be made. The Rel Estate Pro , IMHO, has their own and not necessarily your interests in mind.

She will get paid only when the property is sold, even if you are not happy with the deal. From her viewpoint, no sale means No Payday.

I realize a realtor makes money by selling properties, so it is in their best interest to sell the property. But the thing is, since their commission is based on the selling price, they want to sell the property for as much money as they can. The more money they sell the property for, the more money they make. Realtors know how much properties are selling for in the area, so they have a pretty good idea how much they can get for a particular property. If you want an amount of money they feel is WAY out of line, it is likely they will not want to even attempt to sell the property because they may feel it is a total waste of their time.

It is hard to say what value a shop adds to the property. If you have someone who likes working on projects, they will be willing to pay a lot more than someone who just wants a house. When you are selling a property, just the "right" buyer may come along real quick, or they may never come along, it's hard to say one way or the other.

Copymutt · Dec 25, 2020

Jinks said:
Do your own research on what similar homes are selling for in your part of the state. NEVER take a realtor's word for value unless you are well acquainted with the realtor & their ethics. Even if you are make them attempt to get your price for a reasonable period of time.

The last house I sold had a two car garage on the house, & a two car shop at the back of the property. The realtors gave me low ball listing prices & complained when I set a higher price. It took a while to get any offers, but I got two full price offers. I settled on the one I thought could actually make it to closing even though the other one offered a little more on a second bid.

My realtor never stopped crying "lower your price", even after I knew the buyers down payment (33%), his employer (US Navy), & his lender (USAA). She called me a few days before closing & tried to tell me to lower the price because "he may not be able to qualify at the level the lender wants"!!.. I told her that if she EVER said "lower the price" in my presence again I would not come to closing & would just keep the house till I found another realtor & buyer! We never spoke again, even at closing. I got my price, I was happy, & the buyer was happy. I don't know if she was looking for a kickback from the buyer, some other scam, or just plain stupid. I've met two realtors in my life that I trust a little more than a used car salesman. The rest are scum.....

Agree wholeheartedly, I had an amazing fishing property w/ a timber frame home built w/ retirement in mind. So, low maintenance & built to last. I suffered for years w/ realtors that would not/ could not market the 12 acre paradise for its features. It was all about the number of bedrooms etc.
Finally a showing realtor fell in love at first sight, but couldn’t swing it. I listed w/ him and it sold in the first month of the pandemic, no inspection, no loan, cash deal. Realtors are not your friend, they do not have your best interest at heart regardless what your listing contract says. I calculate 1 in 20 will get the job done to your requirements.
Like you I’ll be moving from southern Co. to Maine & expect to loose my **** on my garage & pay too much for a lot less than I have now.

Buckgnarly · Dec 25, 2020

farmall400 said:
48x48 on 5 acres in Ct. I'm listening.

Straight as in money, NOT properties. :lol:

wrenchguy · Dec 25, 2020

Buckgnarly said:
I think you are the ONLY person I have ever heard of who moved to CT from the Carolinas....I know a TON of people that have gone the other way, one of which is how I got my 10k Bendpak for 1200 bucks!
Good luck anyway, maybe look to see if someone in CT would do a straight trade?

this!
don't go.

merim123 · Dec 25, 2020

In today’s age I would market it for someone that has their own business and needs a shop/warehouse/gym etc.

How to selling a house with a large garage

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