Posted by Dan-Fl on July 13, 2003 at 09:01:19:
In nice areas it is a negative and drags the resale price down,but in lower class areas I do garage conversions and it increases the resale price by 3 times more then it costs me to build it.
Garage Conversions??? - Posted by Dfree
Posted by Dfree on July 13, 2003 at 07:56:03:
I’ve received a few calls lately from homeowners looking to sell, that have done garage conversions on their homes. I passed on a few a couple of years ago, because of inexperience and fear of not being able to retail @ desired price. Since then I’ve never been offered or looked to purchase homes w/conversions.
MY question is simply, What impact if any does a conversion play when re-selling the home.
Ex. Nice Neighborhood Home 3Bd 2Ba w/ conversion 4Bd 3Ba
2100 sqft. (FMV $105k - $110k)- Tax Value $97k. Home needs about 12k to 15k in repairs and owner wants 69k. Neighborhood has no conversions, however some homes with no garages instead they have carports. Only 2 homes have sold in this community both w/ garages that’s where the FMV comes from.
Just Looking for different thoughts!
Re: Garage Conversions??? - Posted by jasonrei
Posted by jasonrei on July 15, 2003 at 15:10:07:
I’ve bought a couple of conversions where it went from a 2-bed to a 3-bed. In that case I see it as a plus. I recently bought one where I converted a 4th bedroom back to a garage. To me it all depends on the neighborhood.
As for your example, I’d see the conversion as a negative, unless the floor plan of the house allows you to add a nice carport without bringing down the exterior appeal of the house. Besides, you’ve got a full bath in your conversion, that’s worth something.
Re: Garage Conversions??? - Posted by kelly (FL)
Posted by kelly (FL) on July 14, 2003 at 13:03:46:
From an appraisal standpiont, if the area is finished in a mannor consitant with the rest of the home and is heated and cooled, it would add the converted square footage to the home Thus, your comp selection would have to be adjusted in accordance. In your example you would have to find out what the square footage of the comps are and adjust you FMV accordingly. Same goes with the garage. In other words if the subject is 2100 ft and no garage, and the comp is 2100 ft and a 1 car garage, obviously the market would be willing to pay more for the home with the garage. Now you have to determine how much more and adjust the FMV. Same holds true with the square footage. People are willing to pay more to get more.
As for doing rehabs with conversions, we have completed several in the price range that you are looking and we have had very good success.
Hope this helps.
Re: Garage Conversions??? - Posted by M. Osterman
Posted by M. Osterman on July 14, 2003 at 24:15:31:
A garage is a garage…Converted or not. Still a garage.
Mike
Re: Garage Conversions??? - Posted by RichV(FL)
Posted by RichV(FL) on July 13, 2003 at 11:02:27:
Dfree,
I agree with Dan. From what I see in my neck of the woods the converted garage deal will fly in the low end areas. But in the upper end or “nice areas” they end up being an eye sore to potential buyers.
Great Success,
RichV(FL)