How Much Does a Detached Garage Add to Property Value

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To detach or not to detach? That is a question many homeowners have debated for decades. While adding a detached garage to your home can improve its value, what most potential renovators want to know is how. Let’s take a look at how the addition of a detached garage on your property can add to the value of your home.

How A Detached Garage Adds Property Value

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1. Local Real Estate Pricing Research

Depending on location, adding a detached garage can have a limited or a significant impact on the value of your property. Before you make the decision to apply for permits and break ground, you will want to review other similar homes in your area. If possible, you should then look at property values for nearby homes with detached garages. This research should give you a general idea of how adding a detached garage will affect your property value.

2. House Design

The floor plan and property placement of your home will have a significant impact on the placement and design of your detached garage. You will want to 

3. Storage and Living Space

A detached garage is ideal for adding storage and living space to your home. If you can build a second story on the structure, you can even add an apartment. Permits and local laws are a significant factor with two-story and apartment spaces, but many localities permit it. Extra storage and living space are always going to offer a bump in the value of your home.

4. Increased Appeal To Potential Buyers

When searching for a new home, many buyers specifically look for properties that have a detached garage. They are ideal for buyers that need a workshop space, and many are interested in converting detached garage spaces into living spaces. Bottom line, increasing the curb appeal with a desirable feature is going to add property value. 

5. Renovating The Existing Attached Garage

If your home already has an existing attached garage, adding a detached garage creates a unique opportunity. After you have built your detached garage, you can empty out the existing garage and renovate it. Renovated attached garages can create additional living space, work space and storage space. This combination can add significant value to your home, and it allows you to maximize your available interior space.

6. Detached Garage Adds Home Value

Fundamentally, adding a convenient and attractive amenity like a detached garage is going to add value to your home. How much value will depend on your location, permit costs and property placement. Additionally, you will need to review how your property will be appraised after the addition of a detached garage.  Here’s a quick overview of what appraisers will be looking for.

Detached Garage Appraisals: How It Works

You will need to make an appointment to have your property assessed by a licensed appraiser. When they visit the property to make their inspection and appraisal, they will measure the square footage of the garage first. Next, they will note any additional features like heating and air conditioning, a bathroom or a loft. 

Much of their calculations will be derived from the square footage measurement, but they may add or subtract depending on features. Appraisers also base the additional valuation on the replacement cost of the detached garage and home. If the structure was built by a good contractor that maximized the benefits of property placement and features, you should see a decent increase.

How Much Does A Detached Garage Add To Property Value?

This property value increase from adding a detached garage varies widely by area, cost of construction, and the features you add to it. You may want to consult with a building contractor or realtor before you make a decision to get a better estimate of how much of an increase you can anticipate. Sometimes the investment yields a $10,000 increase from one appraiser, while another may value it at $15,000 or higher. It all depends on how and where you are building.

What Return On Investment (ROI) Can You Expect?

As with how property value will increase, your ROI is dependent on how much it costs to build your detached garage. The lower the cost, the greater the ROI. The national average for ROI on detached garages is 65%, so that should give you a rough estimate of anticipation. Keep in mind this is the national average, and your area may offer a better market for homes with detached garages.


All considerations aside, adding a detached garage to your home can increase its value if or when you decide to sell. Moreover, it can also increase curb appeal and storage, work and living space available. 

Are you considering adding a detached garage to your home? Our team has the knowledge and experience to help you make the most of your investment. Contact us today for more information.

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