Selling a home with a nice garage

[Falcon67]

Echo - We've got about $16K in the 24x40 shop, would not expect it to bring any sort of premium. What we WOULD do if we were to list is call a friend that is a Realtor and used to manage a race track and let him list the property using his contacts locally. Then and only then would we stand to gain anything. I would still gut the thing - everything, air system, lift - all of it.

Granted, we "know a guy" and that is an exception. For the last 100 years, a garage is where you park a car and pile your **** while you go out and get more ****. Asking any regular Realtor that sells a zillion regular houses to market your one off big building as something special is forgetting that you - we - us - are waaay outside the bell curve.

Big garages are like pools, maybe not quite as bad. You shell out $35000 for a pool and you get zip at sale, maybe even take a hit to get moving. Then the next owner fills it in.

 

[unslow1]

I have a few friends in the real estate business that have advised the same. My Grandparents old place had a detached 3 car garage in the back with a paint booth. Then it had an old barn/concrete garage next two it. After having it for sale for 5 years the best offer they got was less 1/3 of what they had in it. They gave it to my uncle/ their son.

Their current house has a 6 car garage in the backyard. It's nearly the size of the house. A really nice place that I currently store the car collection. The realtors I've been talking to are saying it will be a tough sale.

My current house has a detached garage. I wanted to build a second garage tall enough for a lift with 220V plus a nice furnace. My realtor friends talked me out of it. They said it would be nearly impossible to sell and I better plan on never moving.

My sister had a house with a two car garage and a 15x 30 pool in the back. After not being able to sell it we yanked out the pool and and filled in the hole. Once it had a yard again it sold quickly. That one really surprised me.

I'd say you are probably hearing correctly. Guys I know around here give away the lifts because even in rented spaces they make renting the place harder. They say it limits who is interested.

 

[Blue XJ]

Rule of thumb I've always heard is each 'extra' indoor parking spot will add about $5k in value to the house.

I was just recently a buyer looking for a house with a large outbuilding, I passed on everyone I found because people were trying to get the full amount back that they spent building it. It priced the houses out of the 'competitive' value and put a few of them considerably over what it appraised for, which makes getting a mortgage for it impossible, unless you want to put 50% down.

 

[engineer2]

At least some of you can find homes with large outbuildings or garages. Around here it doesn't exist unless you want to pay $500,000+ and have a $20,000/yr property tax bill.

 

[APEowner]

A nice garage can add some value but despite what you might think from this web site the number of people who want one and can afford to pay a premium for it is relatively small.
When I sold my NY house there were several people who were excited about the shop but neither of the two that put in offers were able to get financing. As far as I know the woman who bought the house doesn't even use it to park in. When I've gone by in the winter the driveway hasn't been cleared far enough to get to it.

I'm sure I could have gotten a bit more for the property than I did but I would have had to sit on it for a while and I would have had to sit on it for a really long time if I were to price it to get all of my shop investment costs out.

 

[roll_the_dice]

As was said before...realtors are a dime a dozen. They deal in quantity of listings not quality. If you don't like what your realtor is saying, find a new one.

I recently sold my dad's house after he passed away a few years ago. He didn't have a separate garage, but an oversized garage with a nice work area. I built a workbench, hung pegboard, and put up some cabinets for him. The realtor didn't even show a picture of it...I was mad and made her put pictures of the area and put in oversized garage in the listing.

I ride by the house about once a month...habit I guess...but when I do, the owner is always working in the garage. I enjoy seeing that!

Remember the realtor works for you! They get paid when the house is sold...if you are in a hurry to sell, then list it accordingly, if not list it for what FMV is plus whatever you want out of the garage. Remember, it is easier to come down on a price, than to go up!

Good luck!

 

[Slupie]

At least some of you can find homes with large outbuildings or garages. Around here it doesn't exist unless you want to pay $500,000+ and have a $20,000/yr property tax bill.

Or live out in the middle of nowhere still with $10+K property taxes

 

[ard]

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.......

This thread was mostly just to assure myself I wasnt under pricing my current home.

Thanks again to all who posted.

I think you can see from the posts that the key will be to properly market your home to the 'right' buyer. Someone that values the space, not a realtor in high heels and a lexus who thinks "two cars, two car garage- anything else is a liability"

Looking though the thread, I can see a lot of ways to 'talk up' the property...anything from stressing you are getting real living/working play space that will make they home so much more livable, to 'mancave' to mutipurpose, art studio, etc etc.

25 Years ago when we sold our first home, the realtors came in with comps- said 'wonderful home, but the most we can get is $175k'. I got so pissed off, I did it myself, had the professional signs made up, no MLS. Asked $249, sold for 245. To the first couple that looked at it in fact.


(Oh, congrats. No more 'man on man' coverage... gonna be zone now, eh? )

not to be the **** here,

Too late....

 

[NYBODYMAN]

Subscribing. Where are you in NY? I'm about an hour from NYC as well and I may be in the same boat.

 

[Bighead38]

Subscribing. Where are you in NY? I'm about an hour from NYC as well and I may be in the same boat.

I was wondering where as well. An hour away from NYC can be very different depending which side of the Hudson.

 

[onewheat]

For the 'right buyer' you can definitely do well selling. It may not be at 100% but maybe. When we sold the house below - 24x24 at one end and a 30x40 2-story at the other. our realtor didn't want to showcase the garage either. It was a corporate move with a realtor assigned to us and I fought with that ***** constantly. There were 200 4 bedroom homes for sale in our area at the time we sold but only 1 with that kind of garage space in a subdivision. I kept telling her it wasn't the house that was going to make the sale, it was someone like me that looks at 100 houses before buying. I want garage space in a subdivision or a big enough lot to build it. Bedrooms are easy to come by in subdivisions, big garages are not. It took 2 months but sold to a couple looking for exactly what I was selling. The house I recently built has a 3-car attached and a mirror image (almost) 3-car detached, in a subdivision. I have no plans on moving anytime soon, but when I do, I would imagine it will sell to someone like me again.

 

[carotene]

It really depends on the market in your location. Some universal truths though:

-Sell the lifts or ship them to me. Make clear that they don't "convey" (label them as such) when buyers walk through. If you get lucky you can arrange a cash sale with the buyer outside of the transaction if they are interested. Most buyers will be put-off by them. They'll think youre running an autobody shop or something.

-The garage has power/subpanel? Market is as "electric car charging ready"

-Advertise spacious parking space. No door dings here!

-Storage galore

You get the idea.... Emphasize the traits that appeal to the masses. Your best return will be the car/shop nut like us. If the realtor can't manage this, see ya!

 

[Bluedodge]

You say you're in a "lake community". Where do people in New York store their boats if they don't have an outbuilding or an over sized garage?

 

[DCarr2]

Off site storage...

I know the frustrations this guy is feeling with realtors... I went thruogh it with my old house. my old house should be torched... were talking an EASY 50k to bring it up to code...

but the shop....

2500 sq ft, concrete block built to go up another story. 10" concrete on 6 feet of gravel, on bedrock. H beams, not I beams... the mother of all shops... tho 12' ceilings sucked.

but trying to find a realtor to market the garage, over the ************* house?!

Due to its location I switched it from residential to commercial and sold it for over 300K.

 

[38Chevy454]

I am in the same boat. The detached garage does not add the full value it cost you to build it, even doing a lot of the labor yourself. 50% is probably generous, but that figure also has a lot of variables in it.

Is your garage a nice matching the house, finished inside, insulated, good electrical service, concrete floor and other features kind of structure? Or is it a pole barn with only sheetmetal siding, no insulation, barely enough electric to run a few lights, maybe gravel floor? Significant difference between those and what perceived extra value for a buyer. Both can provide enclosed storage, and of course the nicer one costs a lot more to build.

I now have my house under contract, the realtor I used agreed with me and we pushed the detached garage as a strong selling point. Along with a nice yard and clean house that shows well. The detached garage was the big selling point for the buyer, actually had two offers, both because of the nice garage and rest of the house/yard package. I did end up leaving the four-post lift as a negotiation item included in the sale. Saves me moving it, but also will need to buy another at new location. I can live with that.

Yes it ***** that I am losing money on the detached garage for what it cost me to build vs what it added to the sales price. But I also got 7 years of use out of it as some consolation.

 

[bcradio]

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.

Which is about as likely as winning the lottery.

If a garage enthusiast is looking to buy your property, he knows that he won't have to pay extra for the garage and therefore won't.

It will only help sell the place faster, not add much value.

 

[jpcjguy]

Wow for those of us in the planning stages of a nice detached garage, this is depressing!

 

[-Brent-]

The vast majority of people will just use that garage to store junk in.

I recently asked a real estate agent what he thought about my adding an attic to my shop and if it would make our house worth more (just curious more than anything). While I use it for tool storage and little else, he said that a prospective buyer would see more value in that than any of the other shop upgrades. He'd specifically list it noting additional storage space since our home doesn't have an attic. The attic is a benefit but not an increase.

The shop is the only upgrade to the property that probably didn't increase the value. But in today's Utah real estate market, where multiple offers over asking have been common place for a while and places are selling before there's a sign in the ground (seriously, some stuff isn't even making it to being listed), I'd say the there are features of the shop that could be helpful but I wouldn't bank on it.

 

[cash68]

When I was looking 1.5-2 years ago, I found certain websites that would state garage size in my area, so I could look for 4+ car garages with houses in the area for sale, or 3+, etc.

It was extremely helpful. I own 3 cars, a boat, some sleds, and a cookie cutter 2 car garage WOULD NOT FIT ME. I told my realtor this, and he did his best to find me properties with larger garages, or potential for larger garages. Ultimately though, I was using msot of my cash for the downpayment, so I would not have liquid left over to 'build' a garage.

This meant that houses with EXISTING outbuildings were MUCH, MUCH more desirable than houses without.

 

[cash68]

There were 200 4 bedroom homes for sale in our area at the time we sold but only 1 with that kind of garage space in a subdivision.

Exactly. And honestly, since my cash was going into the down payment and I couldn't swing a down payment AND building a garage from scratch, I HAD to find a place for sale with the garage space I needed.

 

[onewheat]

Exactly. And honestly, since my cash was going into the down payment and I couldn't swing a down payment AND building a garage from scratch, I HAD to find a place for sale with the garage space I needed.

Same deal for us when we bought this - the interior was ugly. I repainted EVERY room in the house, removed two walls, removed 200 sq ft of carpet and 500 sq feet of PINK tile and laid 700 sq feet of tile, gutted the kitchen and gutted a PINK bathroom (pink toilet, pink sink, pink counter, pink cabinet and pink and green floral wallpaper). At one time EVERY room in this house except one had been pink. Oh, and pink mini blinds too. I had to take my wife here at least FIVE times and have her look past the colors and promised I would re-do everything before getting lost in the garage - just so I could get a house with garage space in a subdivision for my kids to have nearby friends. We had great schools, across the street from the neighborhood pool/tennis courts, awesome neighbors and I had 1800+ sq feet of garage floor. It was great... and then we moved.

 

[TLCObsession]

A few things:

Every appraisal I have ever had has given value to outbuildings and figure into what the bank will loan.

Yes - we all see it as a garage, but if it is done right, it is also potentially a place to run a home based business. In the 'new' economy, there are a lot of people that work from home and need a place to work from, run their eBay store.

Around me, homes with a shop sell very quickly. We are actively looking for a home with a shop so that I can set up in the shop, store a vehicle and a boat and rent the house out.

 

[cash68]

A few things:

Every appraisal I have ever had has given value to outbuildings and figure into what the bank will loan.

Yes - we all see it as a garage, but if it is done right, it is also potentially a place to run a home based business. In the 'new' economy, there are a lot of people that work from home and need a place to work from, run their eBay store.

Around me, homes with a shop sell very quickly. We are actively looking for a home with a shop so that I can set up in the shop, store a vehicle and a boat and rent the house out.

That's... that's a pretty awesome idea.

 

[46Nash]

Several people have asked about the specifics of the garage.

Here is my build thread: http://www.garagejournal.com/forum/showthread.php?t=172542

I have a 100amp sub panel in there. Its plumbed for air as well and its fully insulated. Its a really nice space. Oversize 9x9 high lift doors with liftmaster openers.

This is the listing for the house:

http://www.houlihanlawrence.com/property/115153713/27-rambler-road-carmel-ny-10512

I recently rewrote the text of the ad, but Im still thinking I need to "punch it up" a little.

 

[denis4x4]

Nothing wrong with the listing in my opinion. Interest in water front property far exceeds those looking for a house with a workshop.

 

[nmantas]

Beautiful property (house/garage/land).....the one thing you might want to add is the upstairs of the garage. I see nice full-size stairs but no pics (I'd show the space even if it is just storage because someone might want to convert half to a woodworking space or office).

 

[Viper98912]

I must say you did an excellent job of matching the garage to the house, even down to the white side window. Kudos.

 

[TheOtherChris]

We lived in our last house at the edge of town for nearly 20 years. It was always supposed to be "temporary" So I have been looking at houses with a shop for the last 10 years. When I first started looking most of the agents in the area didn't market the garage/shop if there was one so I started looking for houses with barns.

A little over a year ago I found an old 1890 farm house (that hadn't been lived in over 10 years) that needed quite a bit of work BUT.....
It came with a 35x60 barn with a full loft above.
So we bought a barn that happened to come with a house. I have spent way too much money renovating the house but I am not doing it for the resale value. I am doing it because it is what I want.

So don't expect to get back what you put into the shop but make sure there are at least a couple of pictures of it in the listing and that the word "shop" is a key word as well.

And when you start over in your new place make sure you build what you want but with the ideal that the money you spend is like buying an 80" TV. You can enjoy it but you're not going to get somebody to pay you for it when you're finished with it.

 

[Bob275]

Several people have asked about the specifics of the garage.

Here is my build thread: http://www.garagejournal.com/forum/showthread.php?t=172542

I have a 100amp sub panel in there. Its plumbed for air as well and its fully insulated. Its a really nice space. Oversize 9x9 high lift doors with liftmaster openers.

This is the listing for the house:

http://www.houlihanlawrence.com/property/115153713/27-rambler-road-carmel-ny-10512

I recently rewrote the text of the ad, but Im still thinking I need to "punch it up" a little.

That is a beautiful property, if it was near me it would be sold!

We've been searching for a property with a detached shop and there is nothing available. I hate when there's no details about the garage, basement, or the property itself. The house is a bonus.

Those taxes though!!!

 

[Git]

Yes, very nice

I can't help wonder if you're having problem selling because of Zillow. For example, Zillow estimates your property to be worth $347k
https://www.zillow.com/homedetails/27-Rambler-Rd-Kent-Lakes-NY-10512/31913467_zpid/

And then there is this:
Homeowner sues Zillow for allegedly undervaluing her home

 

[Viper98912]

I don't know how the Zestimates calculation works, but it's total ****. In my last house I sold, the Zestimate started at $10k below my listing price, and in 3 weeks it was $100k over. Yea right, it's a completely worthless number. Do the real comps...

 

[Git]

That's part of the problem and why I brought it up. It is very easy for people to just pull up Zillow and see what *their* estimate is and take it as gospel. That is why that one woman is suing

 

[admranger]

Redfin seems to do a better job at estimating true market value.

I agree Bob275, if it were near me I'd have lobbied hard to buy it.