If your goal is to have your home appraise at its highest value, adding a garage might be on your to-do list. Buyers view garages as an attractive addition to a home for numerous reasons, and can certainly increase your home’s market value.
However, exactly how much value a garage will add to your home depends on a few factors, such as: its size, materials, type of garage, and the buyer.
What Does a Garage Mean to You?
We listed the buyer as a factor that influences how much value a garage will add to your home, but, do you know why?
First lets look at the term value. Value can be “calculated” by dividing the perceived benefits by the cost.
With that being said, a younger male who works as a car mechanic will have a higher perceived benefits from the garage compared to an elderly couple who would use the garage for storage.
As you can see through that brief example, calculating the amount of value a garage can add to your home has much more to it than just numbers.
The Types of Garages Found in Calgary
When thinking about adding a garage to your home, it is important to determine what type of garage you would like to add. There are two main types of garages, attached and detached, that come with their own unique set of benefits and disadvantages.
An attached garage is exactly how it sounds: the garage is connected to your house and harmonizes with the rest of the home.
- Benefits: Attached garages are excellent in cold climates (like Calgary’s 7-month long winter). The luxury of having an attached garage means they do not have to go outdoors to get to their vehicles, workstations, or for whatever purpose the garage serves.
- Disadvantages: Attached garages must be properly insulated to prevent harmful fumes and odors from entering your home. Also, attached garages that are not properly insulated may cause a draft in your home, leading to a higher heating bill.
Similar to the attached garage, the name implies exactly what it is: a detached from home garage. They are generally located a few feet away from the house, or behind it.
- Benefits: A detached garage can be used to store materials, or complete work, that might emit harmful chemicals and fumes without the worry of it entering your home. Another popular benefit with detached garages is the opportunity for a living space above it.
- Disadvantages: The biggest disadvantage of a detached garage is its location. Unlike attached garages, you are exposed to the elements when going to the garage. The garage may provide shelter for your vehicle from the snow, but it will not cover you on your way to the garage.
So, Let’s Talk About Value
When we look at the value a garage adds, we need to first assess costs.
Costs to build a garage depend greatly on the size, material, and type of garage you build. For example, a brick facade will be more expensive than vinyl siding or stucco, and premium windows will add additional costs.
What Does a Typical Detached Garage Cost?
Our superior complete garage package costs approximately $22,000 (assuming standard site and construction conditions). For most people, our superior garage package is all the garage they need (and more).
However, costs can add up if you begin to heavily customize your garage:
- Moving away from a standard foundation adds material costs (this is usually not necessary, but may be in certain ground/grading/soil conditions)
- Upgrading from a standard gable roof to a gambrel or hipped roof can add additional cost
- Opting for storage trusses (compared to standard trusses) will add some cost
- Choosing a more expensive exterior (such as siding or roof shingles) will modify the cost
- Adding additional windows, or upgrading to more premium windows, will also add cost
To be clear, none of the upgrades mentioned above are necessary in order for you to have a quality, well-made garage. However, as with anything, you are always able to customize your garage to suit your specific needs and tastes.
How Much Value Does a Typical Detached Double-Car Garage Add to Your Home?
We recommend that you consult with your real estate professional when trying to nail down value. We can and will speak to this, but understand that this is from our experience and may not necessary be reflective of your specific case.
We have found that the typical garage in Calgary – the usual $19,000 to $30,000 garage – adds roughly equal equity to your home. In other words, if you add a $20,000 double-car garage to your home, it’s not unrealistic to see the value of your home increase by $20,000.
However, where people invest heavily into their garage (such as a $50,000 highly-customized garage), there tends to be diminishing returns that hovers somewhere around 60% of the total cost of the garage.
In this case, if you spend $50,000 on a garage, you may see somewhere around $30,000 in additional value for your home.