In 2025, we are seeing a spike in the number of homeowners considering adding a garage to a house, specifically by expanding to a third car garage or building a detached garage for extra space.
Before moving forward with this project, there are several factors to consider. A common concern is: How much of the garage addition cost can be recouped when selling a home? Homeowners also ask, How much value does adding to a garage contribute to a home’s resale price?
In this article, we’ll outline the key factors that influence how a garage addition to an existing garage or a new detached garage can impact your home’s value.
How Does Attached or Detached Garage Increase Property Value?
The value you can retain from adding a garage to a house largely depends on factors like location, construction quality, market conditions, and entry cost. On average, homeowners can expect to recoup about 65% to 85% of the garage addition cost through increased home value, depending on certain factors. Some reports suggest a value increase of $12,750 to $33,150, with potential ROI reaching up to 103% in the case of garage door replacements.
What Factors Affect How Much Value a Garage Adds to a Home?
1. Location
In areas where parking is limited or harsh weather is common—such as parts of Utah—a garage can increase home value significantly, even up to 38% in some markets. Neighborhood demand and local real estate trends play a critical role in ROI.
2. Quality
A garage built with high-quality materials that complement the style of your home is more likely to attract buyers and contribute to a higher return on investment (ROI).
3. Market Conditions
In a hot real estate market, homes with additional features like a garage tend to attract more buyers and sell at a premium. If demand is high, sellers may see the benefits of a detached garage reflected in a higher selling price, as buyers often prioritize extra storage and parking space.
4. Size & Functionality
The size and design of the garage also play a role in its value. A well-designed, functional space that provides room for cars, tools, and extra storage is more attractive to buyers. A two-car garage typically adds more value than a one-car garage, and a third-car garage can further boost convenience and resale value. A basic detached one-car garage might add 5% to 8% to home value, while a well-designed two-car garage can increase it by 8% to 12%. For those considering adding a third-car garage, this addition can enhance both convenience and storage capacity, making it a desirable feature for many homeowners. A new garage door installation can further improve functionality while enhancing curb appeal, giving buyers even more reason to see value in the space.
5. Cost
If you are not wise with the contractor(s) involved in the project, you can end up way over traditional costs, making it much harder to recoup your investment. While going for “the lowest bid” may seem tempting, it often leads to issues down the line. There is a middle ground. Keeping the cost of building a detached garage or adding a third-car garage within a reasonable range will give you a better chance of maximizing your return.
The lower the entry cost, the more margin you have when you sell—but don’t sign up for a construction horror story! Be prudent in who you hire.
6. Design
There are some beautiful garage doors on the market! Pick one that will make your project pop. If you’re adding a detached garage, consider a design that complements your home’s exterior to enhance curb appeal. Remember, you are choosing a garage door that you love—and that the next buyer will love, too. So, choose wisely!
At the end of the day, your house is only worth what someone is willing to pay for it—regardless of what an appraisal says. But more garage space and better curb appeal rarely hurt when selling a home. Surveys show that 85% of home buyers prefer garage storage, and many are willing to pay a premium for it.
Your Garage, Your Gain
From selecting the right contractor to choosing residential garage doors that enhance your home’s aesthetic, every detail matters. A poorly executed garage addition can be a costly mistake, while a thoughtfully designed one can boost both functionality and property value.
Need help estimating costs or ROI based on your area or specific plans? With decades in the garage business, Mountain State Garage Doors knows plenty of great contractors and resources to help point you in the right direction for your project.
Whether you’re looking for expert garage door services or need reliable garage door repair in Salt Lake City, our team is here to assist. Reach out to us and we’ll render some coaching on your garage door project!
a decade of experience in residential and commercial garage door solutions. His
approach and commitment to excellence are reflected in his articles on garage door care
for both home and commercial properties. Jeremey’s expert insights offer valuable
guidance for maintaining and enhancing garage door systems, benefiting both
homeowners and businesses.
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