How Garage Conversion Affects a Home’s Value

How Garage Conversion Affects a Home's Value img

Are you wondering how garage conversion affects a home’s value?

Converting the garage of a single family home into an accessory dwelling unit (ADU) can increase a home’s value. It can also be profitable for a homeowner who doesn’t even plan on selling their home.

How can garage conversion be profitable? There are various ways that upgrading your a home’s garage into a living space can be profitable. One way is that it can increase a home’s value for anyone planning on selling a home.

How Can Garage Conversion Increase a Home’s Value?

Let’s go into detail about how a garage conversion can increase a home’s value by going over some examples.

First Example of How Garage Conversion Affects a Home’s Value in a Good Way

Let’s consider a home that has a value of $600,000 USD and is 2,000 square feet large.

In this case, the value of each square foot is worth about $300. If an ADU that is 400 square feet large is added to this home, the total square footage of the home will be increased to 2,400 square feet.

Therefore, the additional 400 square feet of living space multiplied by $300 per square foot can increase the homes value by $120,000 USD.

The Mathematics Behind the First Example:

Home Value Before Conversion = $600,000

Home Size Before Conversion =  2,000 Square Feet

$600,000 Divided by 2,000 Square Feet = $300 Per Square Foot at Current Homes Value

Adding 400 Square Feet of Living Space x $300 Per Square Foot = $120,000

Home Value After Conversion $600,000 + $120,000 = $720,000

In this first example, the home’s value is increased by a whopping $120,000 by only adding 400 square feet of living space to the home. This is without a garage extension.

An extension could have increased the additional square footage of the home by even more than 400, which would have increased the homes value relatively. Therefore, if the ADU was 600 square feet instead of 400 square feet in this first example, the value of the home would have increased by $180,000 instead of getting increased by $120,000.

In this case with an extension of 600 extra square feet instead of 400 extra square feet, the homes value would have increased to $780,000 from the extra 600 square feet instead of $720,000 from the 400 square feet.

Second Example of How Garage Conversion Affects a Home’s Value in a Good Way

Let’s consider a home that has a value of $1,000,000 USD and is 2,000 square feet large.

In this second example, the value of each square foot would be worth about $500. Let’s calculate how much value an ADU that is 400 square feet can add to this home.

The extra 400 square feet of living space from the ADU multiplied by $500 per square foot can increase the homes value by $200,000 USD.

The Mathematics Behind the Second Example:

Home Value Before Conversion = $1,000,000

Home Size Before Conversion =  2,000 Square Feet

$1,00,000 Divided by 2,000 Square Feet = $500 Per Square Foot at Current Homes Value

Adding 400 Square Feet of Living Space x $500 Per Square Foot = $200,000

Home Value After Conversion $1,000,000 + $200,000 = $1,200,000

In this second example, the home’s value is increased by a whopping $200,000 by only adding 400 square feet of living space to to the property with an ADU. This is without an extension.

An extension could have increased the additional square footage of the home by even more than 400. The homes value could have increased by relatively more based on the extra square footage of the extension.

Let’s consider if the ADU was 600 square feet with an extension instead of 400 square feet in this second example. In the case of this second example, an ADU with an extension of 600 square feet could raise the value of a home by an additional $300,000 compared to the 400 square foot ADU raising the homes value by $200,000.

Therefore, in this case, if the ADU was 600 square feet instead of 400 square feet, the homes value would have increased to $1,300,000 from the extra 600 square feet instead of being raised to $1,200,000 from the 400 square feet.

Increase Your Homes Value by Converting a Garage into an ADU

Are you planning on converting your garage into an ADU? A California garage to ADU conversion can be an extremely beneficial thing for your life and your future.

A recently passed law called Senate Bill 1069 has made converting a garage into an ADU easier than ever to legally accomplish in California. A garage conversion contractor near you can help with remodeling your old garage into all types of new room additions that can be used as extra living space!

Are you located in or around Los Angeles County, California? Don’t settle for anything but the highest quality work in your home. No need to search online any longer. We are popular for being one of the best construction companies Los Angeles can provide.

Provide us with the details of your project and we would love to turn all your desires into a reality.

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