Selling a home with a nice garage

[46Nash]

Hi,

A little background: I'm in the position now where I need to sell my home (moving up to a larger house). Thing is 5 years ago I built my dream detached garage (24x32 w/ loft and 2 lifts). At the time I thought we were staying there otherwise I would have waited to build it. Its a very nice 1800sf house in a lake community about an hour north of NYC.

Reason I'm posting - my realtor says I'd be lucky to recoup 50% of what the garage cost to build. Has anyone here had to sell their home/garage and if so did the garage help you sell? Did you get your money back on it? Just curious if I should trust what they are telling me?

Any advice is appreciated.

Thanks
John

 

[ducksface]

Your realtor is being gracious.
They will show it as
No added value
On your appraisal because banks finance homes, not outbuildings.
Any value to the buyer has to met with equal cash from the buyer.
This kills deals where people have little down payment and kills deals where someone, 90percent type someone's, have no interest in a large garage and will not pay for one.

Others will tell you differently. Think of how I've explained it and then subtract any responders passion and romance.
It's not that there isn't a chance for a premium. It's that the premium comes as cash from the person who holds it at a premium. That is you as in the money you'll lose, or the buyer as in the absolute cash they pay for it.

 

[58Yeoman]

Kind of like when you put a lot of extra stuff on your vehicle. Go to sell it, and the buyer wants stock. Years ago, I had a truck all decked out, and when I traded it, the salesman told me to remove everything that I wanted.

Maybe you should do that with your garage...take all you can if it isn't going to add any extra money.

 

[slip knot]

Banks finance property. if the shop has no value then the taxing entity wont raise your valuation on it.
Around here the banks loan on the value of the property. and any improvements to the property add a value. a working waterwell and septic will add $10k to the value. about the only thing that doesn't add value is an old mobile home. I'd look at another realtor if that's what your hearing from yours.

 

[Stuart in MN]

The vast majority of people will just use that garage to store junk in. If you're lucky, another gearhead will come along looking to buy, but you can't count on that. For sure I'd plan on taking the lifts with you when you move.

 

[kwyjibo]

The vast majority of people will just use that garage to store junk in. If you're lucky, another gearhead will come along looking to buy, but you can't count on that. For sure I'd plan on taking the lifts with you when you move.

+1
We moved a couple of years ago - I spent a lot of time to get from a single car garage to a 3-car at the house that we sold. THe realtor said that the odds of finding someone who'd appreciate the garage was very low. He was right. Plus there was no economical way that I could move the lift, so I gave it to a local friend.

 

[jchetty]

Remember your realtor is there to sell- usually as quick as possible. The realtor doesn't want to sit on the property waiting for the perfect buyer.

As far as the lucky to get 50% back- depends on how much money was spent. If you did a lot of the work yourself- you can easily recoup a lot of it. If you outsourced the work, you should take as much as you can for your next place.

Finally, it can help to see the garage as multipurpose. You say it was a dream build- is there hvac, plumbing, sewer or can it be added? How is the loft setup? That can maybe be advertised as a potential in-law suite or garage apartment.

You are emotionally attached to the space. But imagine someone using it as a music studio, art room or man cave. It all depends on how the space is setup and how easily it can be repurposed.

Don't just think of it as a garage. I know guys that turn their garages into killer gyms for martial arts, crossfit, and even a wood shop.

 

[engineer2]

There is a site carproperty.com to help market your property to like-minded people. Many realtors are idiots when it comes to enthusiasts. I had one tell me "why would anyone want more than a two-car garage?"

 

[blair683]

It will probably help it sell quicker but not for much more money. A bank isn't going to give the next buyer a loan for more than what the house is appraised for. If the appraisal doesn't show the money that you have in the garage then the buyer is only going to be able to finance what the appraisal shows. Unless you get lucky and some rich dude with cash really wants that garage.

 

[ard]

Seems many think that all homes are purchased for minimum downpayments... All you need is someone with a few dollars in equity from their first home so they can swing yours- if the bank appraisal comes in a bit low.

Oh, don't trust realtors. Why is this realtor, who is low balling you, "MY" realtor? Find a realtor who will WORK towards marketing this space in a way that gets you the most. "Your" realtor will make 3% by simply dropping your house into MLS. They don't care. They'd rather you get 50,000 less (only costs them 1500) than actually work at the sale and wait 6 months for the right buyer.

OP- more details on what you spent, what comps are generally worth will help. People giving advice for block and lot subdivisions may not be applicable to a 'lake community'.....

 

[Playwme]

It may help to seal the deal over another house that doesn't have that space, but as the realtor says, you're not likely to get back your build cost. A new shop is just like a new car. It depreciates, and when you go to sell it on the buyer has to settle for the options and colors you chose.

 

[earlthegoat2]

The first thing I thought when I read the OP was, take the lifts with you because any potential buyer might like having the space but very few would want lifts in the way.

Plenty of buyers would like even a detached garage and if they have been looking around at houses that mostly have the cookie cutter attached 2 car they may be impressed by a bigger space.

That causes another interesting dynamic. The fact it is detached. The average buyer is looking for attached. Don't know why really since I have lived in both types of places but it probably has something to do with accessibility and not wanting to walk in the rain or some such. You can count on the average buyer being a yuppie type and wanting to keep up with the Jones' and wanting everything they have exactly. Unfortunately not many possess the outside the box thinking that makes the potential of a detached space so alluring.

As has been said before, it can add significant value if the space is workable to a variety of activities including storage. My garage is for somewhat for storage but I happen to use all the stored tools in there frequently. It is a metal shop, wood shop, leatherworking shop, auto shop, and I could sleep and live in there in the event my house was being fumigated since it has water, bathroom, and is climate controlled. It is wired logically for 110 and 220 and could support a variety of activities.

I built it to look relatively neutral externally so it obviously is a garage but it has many features externally that you would associate with a regular house. Craftsman styled Windows, decorative window in the man door, residential style garage doors, slat siding, etc. This way it is not a potential eyesore like a (sorry fellas) steel building or pole barn.

 

[Viper98912]

I think it really depends on your market. Traditionally, I would say the same, that you're at about 50%, just like a basement.

Except, that in some markets there are a lot of car guys, craft people, and and other trades that would value something like that. For example, a few months ago I went to an open house that had a nicely renovated house, and a somewhat dilapidated detached 3 car building. Expecting to be the only person there, I was surprised when I got there and there were 13! cars parked outside. I happen to live in a state where cars are a HUGE hobby, so this was one of the markets where the value can be collected.

Overall, the "right" buyer will come along, it just depends on the market and how long you're willing to wait for that buyer. The profile will most likely be someone who's older (near retirement), has money saved up, and is looking to settle down and needs that space long term.

The real problem I see here is...I assume you've calculated how much it's going to cost you to rebuild another shop at your next home?

 

[M-technik-3]

We had considered selling our second home which I am now moving back into about a year ago and put it on the market for 4 months, The houses which a few realtors compared it to did not even have a garage so you need the right realtor and or right buyer.

Glad house didn't sell now I have a place to live. (D word)

 

[Showkey]

A hour outside NYC with extra "garage space" in the current market place..........I would expect an all cash offer over asking ........closing with in 10 days.


Make sure they feature the outbuildings in the listing !! With picture and video, it's all about marketing to that guy that collects stuff. Done right in some markets you better have your next place picked out and purchased or your going to be on the street.

 

[matt_i]

My opinion is when you build a nice shop and then move within a few years, you built a nice place for the next guy more or less. The way to extrude the most value from the cost of building it is to stay many years.

If your garage added taxable value to the house via the permitting process then you have that to go on. Around here the taxes are theoretically assessed on 50% of the 'market value' so that lines up with what your realtor is telling you.

I will say when I found a house with a heated shop space already built I was hot to close the deal. But I don't think it was necessarily a price premium. The sellers lost money on their closing statement.

 

[Jsf721]

Sadly the people who are telling you, that you can't
Get your money out are 99% correct. My buddy and his wife built their dream home. Upgrades galore. Cabana house, pool, shop 24x30 guest room upstairs. About 3 years after they finished they had to sell.

When it was time to sell they were totally frustrated with the listing prices being suggested. And equally insulted with the offers being presented by therealtor. They switched realtors obecause she was bringing such insulting offers. Hired 2-3 and then decided to sell themselves.

Properly floundered for over 1 year until they sold it , intact for want the realtor told them to sell for originally.

Sorry but unless you find the 1 percenter who is planning on building what's there now it's hard to recoup.

 

[n20junkie]

If property, and buildings didn't add value, then a bank would never finance a house on waterfront property.


If your in a hurry to sell, price the house with 50 percent of the garages value added in.


If your not in a hurry, price the house with 75-100 percent of the garage added, and wait for a guy who wants that property.

I would have happily paid for a nice shop vs having to build one. My parents house and also my first home both sold fast and for good money specifically BECAUSE they had nice garages.

 

[n20junkie]

Sadly the people who are telling you, that you can't
Get your money out are 99% correct. My buddy and his wife built their dream home. Upgrades galore. Cabana house, pool, shop 24x30 guest room upstairs. About 3 years after they finished they had to sell.

When it was time to sell they were totally frustrated with the listing prices being suggested. And equally insulted with the offers being presented by therealtor. They switched realtors obecause she was bringing such insulting offers. Hired 2-3 and then decided to sell themselves.

Properly floundered for over 1 year until they sold it , intact for want the realtor told them to sell for originally.

Sorry but unless you find the 1 percenter who is planning on building what's there now it's hard to recoup.

Rule number one is don't have the most expensive house on the street. I have seen people in developments upgrade their home 3x over the neighbors. The neighbors property will set most of the comparisons for valuation in the end.

 

[nmantas]

I think lifts (although I would love to have one) would actually lower the value and functionality for most. I don't think you are going to get 50% back and you'd be much better taking a hit selling them here or on craigslist....at least that way you can recoup some funds and the garage might be more attractive for most.

 

[LB-1911]

Hi,

A little background: I'm in the position now where I need to sell my home (moving up to a larger house). Thing is 5 years ago I built my dream detached garage (24x32 w/ loft and 2 lifts). At the time I thought we were staying there otherwise I would have waited to build it. Its a very nice 1800sf house in a lake community about an hour north of NYC.

Reason I'm posting - my realtor says I'd be lucky to recoup 50% of what the garage cost to build. Has anyone here had to sell their home/garage and if so did the garage help you sell? Did you get your money back on it? Just curious if I should trust what they are telling me?

Any advice is appreciated.

Thanks
John

8 or 10 ft overhead doors?

Size of lot?

I'm w/ Showkey - Your location should work in your favor.

A hour outside NYC with extra "garage space" in the current market place..........I would expect an all cash offer over asking ........closing with in 10 days.


Make sure they feature the outbuildings in the listing !! With picture and video, it's all about marketing to that guy that collects stuff. Done right in some markets you better have your next place picked out and purchased or your going to be on the street.

 

[yeldogt]

Why are you buying a bigger house ?

..... if you are in your early 40's and think is's the thing to do (couple of kids) ..... you will be selling it in 12 years.

Most of my friends did ......


As to your question -- only the market will decide. In most areas not having a garage is a negative .. but, building one will give you 100% payback. Almost nothing will.

I have a weekend place a drive form NYC -- in my area everybody needs a outbuilding. People still buy the house .

 

[denis4x4]

There seems to be a lot of unknowns in this situation. What's the asking price and what are the comps in the neighborhood? More importantly, what is the assessed value and taxes? If the garage was assessed at the true construction costs, does that relate to higher property taxes? The answers here (including mine) are worth exactly what you're paying for them!

The only time I've made improvements to properties that have paid off in a higher price were incorporating features that were ADA compliant.

Finally, unless you're locked into that particular real estate salesman, ask several brokerages for presentations on how your property will be marketed.

 

[Ben7203]

I suggest you research your market and find out how your area handles detached garages. In my area, a detached garage is valued more per sqft than a building that is an awesome work shop, but most would just use it as a shed for additional storage. But a detached garage will not have the same sqft value as your home (living space).

I learned the hard way when we spent $50k finishing out a 2000 sqft basement, 2 bedrooms, huge bathroom, kitchen, work out area, living room all with HVAC. Even with TWO walk out doors, since the basement is below grade, the sqft value was less than half of the rest of the home.

I think homes are being built cheap because of today's appraisal process. We built our home with top of the line windows, flooring system, Hunter Original fans in the cathedral ceiling area, solid interior doors, insulated garage doors, KILLER BASEMENT...... None of this factored into the value of the home, square footage and comps set the home value. Did this stuff help sell the house, sure but we could have used builder grade materials and sold it at the same price.

In the planning stage of building a new home now, I'm not going totally builder grade but if I can add the nicer stuff later on, that's the plan. Since it is just me and my son, it's amazing how much easier the planning stage has been. Jacuzzi tub...nope, double oven....nope, custom closet system....nope, expensive dining room is now my office.

Good luck

 

[PoorOwner]

I think you should remove the lifts and put a foos ball table there and a couch and tv in the loft. It would appeal to buyers more as a bonus building. There will be Motorheads who appreciate what you have done but you have limited your audience. The more exposure is better.

Guys. If I put a small insulated workshop / shed / studio office that costed $10,000. Don't you think I would get it back in a house that is in the million dollar range ? At what point will a building not considered added value to the property? Income tax I would definitely get the receipts and add it to the cost basis of the home sale to decrease the capital gain.

But will appraiser definitely only put down no value in the comps?

 

[fteufert]

You can ask whatever you want for the house, even if it is over priced.

I personally would look for a house with a great detached garage, just like many others would.

Make sure that it is well documented in the ad's, and include pictures.

 

[LXCam]

Good luck but count me in as thinking this is a major plus "for the right" buyer which may take some time. I built a property that matches this description. It's the ultimate set up for a hobbiest that's into cars, boats, RV's, etc. I've dumped a **** pot load of money into concrete, block and wrought iron work to make my 1+ acre lot total usable for storing and servicing big stuff in a clean, safe environment that keeps it away from a street view. I refuse to give it away but I know it will be a difficult sale too.

All I'm saying is what a few others have said. If you can sit on it and get the right person representing the sale you'll get your money. If that's not an option than you need to **** it up as dollars spent on your own enjoyment.......kinda like buying a boat. Definitely not an appreciating asset.

 

[ducksface]

Added value above the financial rules of the bank will be met by cash from the buyer, not financing by the bank, regardless of the appraisal.

I think a more telling question would be;
Who here paid retail build cost for the detached garage that came with their used home purchase?
Different phrasing, essentially the same question.

 

[IMXCITD]

honestly....i'd go the other way and try to figure out a way to stay...unless I could get good value for the property. Why do you need to move and buy bigger? Most people get caught in that trap and think they need a bigger house....when they really don't. I'd urge you to reconsider and re-evaluate your living situation. Maybe you can restructure your life and/or add-on (if even needed) to your existing home to make it work for your family.

 

[Showkey]

We all can speculate................call in five other agents for their opinion on your property and the current market conditions. How much is potential asking price above the other properties in a two mile circle. Garages are a lot like horse or hobby farm property only with less acres. Only extra garage space can be marketed to artists or other hobbies. At least your not trying to recoup the costs of a giant swimming pool that retailed for $120k.

If your in doubt list at your price and see what happens. You do have to move if it sells !!!

 

[DCarr2]

Up here in the suburbs of buffalo NY, properties with a nice house AND a nice large detached garage sell with in days, some with in hours of listing.
My house I bought, It was only on the market 6 days before I jumped on it... and there was 6 competing offers on the table. I won out as I was paying cash.


Depends on the outbuilding and what shape its in... I am assuming its heated and stuff?? bet you could get a pretty penny, and make sure your realtor markets the shop, because homes with nice out buildings are actually in big demand once you get away from the 'city'

 

[admranger]

I'm learning that the garage isn't a priority for realtors. I have my vegas house for sale b/c I took a promotion and moved to the DC area (not sure what I was thinking...).

The realtors didn't even take pics of the garage space until I essentially demanded that they do. I know that when I was looking for a place out here near DC not having any info on the garage in the real estate listing was a major annoyance to me. I may have even skipped a few properties b/c I had to kind of guess what the garage space was based on the exterior pics and interior room pics.

If anyone needs a nice home (or second home) in the Vegas area, you can see what the garage looks like in the link in my signature. Sorry, the Lista cabinets came with me to DC. I'm not completely insane...

Good luck with your situation, OP. I wish you the best.

 

[rayra]

There is a site carproperty.com to help market your property to like-minded people. Many realtors are idiots when it comes to enthusiasts. I had one tell me "why would anyone want more than a two-car garage?"

try that, or plan on stripping out your lifts and add-ons to re-use in your new place, before listing the home. Something like the PODS moving service would be a less expensive way to do it.

If you thought you were staying there, but are now having to sell just to be staying in the region and upsizing, I can only presume it's to 'keep mama happy'.
Proceed with caution. I know two guys that got dragged into something like this just to wind up divorced after their wives got their 'dream house' where they wanted it.

 

[lakeroadster]

Has anyone here had to sell their home/garage and if so did the garage help you sell?

I was sure it would..... it didn't.

Did you get your money back on it?

We broke even. Better to be lucky, than good.

Just curious if I should trust what they are telling me?

Realtors are equivalent to used car salesmen/saleswomen. proceed with extreme caution.

I took my 2 post Rotary Lift, all the wall and base cabinets and all storage racks. I specified that they were available for purchase, the buyer wasn't interested.

 

[46Nash]

Wow, lots of great information here. Thanks alot to everyone that posted. Reading the responses here make me feel much better about the whole deal.

Many have asked why we are moving to a bigger house. Well the reason is pretty simple. When I built the garage we only planned to have two kids. Well, I now have three. At the time this house would have been on the small side with two kids, but now with the 3rd, I just dont feel its enough. There isnt much in the way of potential for an addition to the house, and with prices still being low in my area we were able to score a bigger house (has a nice garage thankfully) for a good price. It also has many elements of being a "dream house" that the current property does not have, so Im pretty excited to move. This thread was mostly just to assure myself I wasnt under pricing my current home.

Thanks again to all who posted.

 

[DCarr2]

not to be the **** here, but what is with those between 25-40 that feel that an 1800 sq ft home isnt big enough for 3 kids?

Why does everyone need a Mc Mansion? its more to heat more to cool, more to clean, more to furnish, more **** to fix, higher taxes, bigger mortgage ect ect.

all my friends grew up in houses 2K sq ft or less with 2-4 siblings. if you had a 2K sq ft house you had a BIG house!

now 3,000 4,000sq ft isnt big enough... like seriously...

 

[Viper98912]

not to be the **** here, but what is with those between 25-40 that feel that an 1800 sq ft home isnt big enough for 3 kids?

Why does everyone need a Mc Mansion? its more to heat more to cool, more to clean, more to furnish, more **** to fix, higher taxes, bigger mortgage ect ect.

all my friends grew up in houses 2K sq ft or less with 2-4 siblings. if you had a 2K sq ft house you had a BIG house!

now 3,000 4,000sq ft isnt big enough... like seriously...

Very simple.

Because I can.

And that's how I choose to live my life, using the great credit system of this country, to maximize what I feel is one of the important facets of my life, along with many other non-monetary/non-material items.

If others don't want to take advantage of that, then that's fine too. It's all up to each individual.



[all of this is assuming you can afford it, without being underwater in debt, etc]

 

[tab2]

Living in 882 square feet in town comes with its frustrations but my parents still live in the suburbs with a 3 level 30'x36' barn. When looking at listings weekly out of the city I cannot believe how many realtors don't even show pictures of the garages, especially when detached. Make sure they take a few pictures of each level.

You'll probably have to get the lifts out because the wives will think their ugly or not know what they are.

I don't think you'll get the money back 100% but if your patient I think you do pretty well when you find the right buyer. If you're paying a monthly cost to keep it there will be a break even point where taking a lower price job the beginning is worth it. Not to mention dollar today is worth more than a dollar tomorrow.

 

[Jackfre]

"I'm in a position where I need to sell my house"
That may tell the tale. How much time can you sit on it. I agree that an hour N of the city should work to your advantage. I saw a lot of city car guys at Lime Rock and The Glen and there are the private race track/clubs upstate serving them also. I'd do a little digging into local car clubs and list the distances to all the tracks within the area. Yours sound like the ideal spot for a city bound car guy. Can store and work on the cars close by work and close to the tracks. If you do not do the leg work yourself you are looking for the needle in the haystack and your realtor will be right.

 

[dnwong]

That is why I built mine as an attached garage with the potential for 2 finished floors above it. Adding livable square feet is the key to increasing the value of your house.