Buying a House Checklist a Garage as Rental Space
Many new homebuyers in the market for a residence may be looking at the add on features of buying a house. As they gather property search information real estate buyers might need electric car facilities in the protected garage. Other things residential investors might be looking at is the ability to add a home office or workshop in the garage.
There are many applications to the addition to having a car port or garage. If you look at the new additions to homes you may have seen more people converting this space to a rental property with a private entrance. As home buyers gather the real estate information as they are getting closer to a sale the value of additional building space used for vehicles or other applications can become a financial decision.
Buying a House Checklist Mortgage and Taxes
If you are buying a house with the idea to rent out the garage you may be able to offset the mortgage payment. It is a good idea to look at the real estate disclosures laws in your area to find out about additional rental space. Also talk to a real estate tax attorney about the benefits of renting vs how it may affect your property taxes.
In most states, particularly in the Sunbelt region of the nation, there are many smaller, older homes that don't have a garage and with the rising demand for more space and amenities is a home without a garage a detriment to the seller?
That question leads to the next question, should home sellers whose houses don't have a garage construct one in order to be competitive with homes that do? And what type of companies are best for these real estate renovations?
Unfortunately, there's no right or wrong answer since the importance of having a garage depends on many factors such as do other homes in the area have one, what is the home's overall current value, and lastly what type of climate is the home located in.
One common thought on this topic is that a garage does increase the value of a home if it's a mid-level or higher priced range home and if it's in an area that experiences the four seasons of weather such as Northern California.
Another thought is that if a home does not have a garage it could hinder its salability. Garages do add value to a home. A one car garage can add up to $20,000 to a homes value while a two car garage can add as much as $30,000.
Additional thoughts regarding a home without a garage is that even if the home doesn't have one, buyers are more willing to buy a home without a garage as long as there's room on the property to build one later on should they see fit to do so.
There are many people, such as investors, who feel that it is important for a home to have a garage and they believe building one is a good investment because on average a two-car garage will most likely return the investment by as much or more than two fold.
On the flip side to this argument, it's thought that by the time a seller is ready to put their home on the market, many don't want to take the time and money to build a garage and thus their listing agent will need to help them price their home accordingly.