Which willl help the value of my home more. closing a agrage for a fourth bedroom or finishing a basement?

Question

I recently bought but have a prepayment penalty. My job may be changing and I will have to sell. I can close in the garage and finish it for about $1000. The basement will cost more but I need an extra 5K out of the house to break even with the prepayment.

Answer 1

Finishing Basement. cars are so expensive now days everyone wants a garage or they will look elsewhere. You can convert or finish the basement into a 4th Bedroom and keep the auto Garage. It is a win win that way.

Answer 2

A Realtor or Home Improvement Expert will probably tell you to finish the basement. Depending on what you do, you already add another bedroom and extend the square footage of the home.
It is considered "livable space" when the basement is used for anything other than storing stuff.

I personally would buy a home with a finished basement for several reasons over a finished garage. If your garage is detached, who would want to go out to it to sleep except maybe a teenager? If it is attached to the house, I'd still buy the house with the finished basement.

Answer 3

Finishing a basement would add more value to your house. By closing your garage, you will limit some prospective buyers who would probably want a garage. By adding the finished basement you add square footage (provided there is air/heat down there) and can even add an extra bedroom/bathroom down there. Yes, would be a bit more costly, but if you contract it out (look for new construction in your area and ask around who does this on the side) you can save a lot of money versus someone out of the yellow pages.

Answer 4

Finishing a basement in the vast majority of cases.

If you convert the garage to a bedroom, you're losing all the potential buyers who want a garage, while gaining only those that need four bedrooms. For most folks, that fourth bedroom is a luxury, but for a large number, a garage is a "have to have" whether they're planning to park cars in there or not.

Fewer potential buyers equals lower sale price and longer to sell.

Will it be enough to break even? Don't know your neighborhood. Might help, might not.

Answer 5

Many variables are in place for what you're considering. The $1000 figure is pretty inexpensive when compared to the usual costs of that kind of work, so it leaves open the question as to whether it's work you intend to get a building permit for and have it approved, or do the best you can on your own, trying to save money, and hoping it will add value to your home. But it may come back to haunt you when a buyer is ready but a home inspection turns up non-permit work that could trigger the city or county to rip it all out. This is only speculation of course since I don't know your skill level and you may be a contractor too.

The basement is another question mark, because we (here on Yahoo) have no idea what it looks like now and what it may look like when you get done.

You just need to keep in mind that hastily doing unorthodox things to boost a property's worth may actually reduce it's value if you're not careful in how you accomplish these tasks.

Answer 6

I would finish the basement, because if I were looking for a home, I would pass up anything that does not have a gagage for my car, and I bet a whole lot of folks will be thinking the same way. Even if they don't use the garage, they may want to use it for another purpose and not a bedroom. Besides that, there may be particular codes you have to adhere to regarding that gargare bedroom.

Answer 7

i agree with the others, finish the basement. i'd buy a house with a finished basement. most people will end up putting junk in the garage anyway.

in any case do whatever it takes not to have any prepayment penalty on the next mortgage you get. that's a bank ripoff and who needs that?

Answer 8

I think that more people would prefer to have the basement done. The garage doesnt really need to be finished, all people want to do is park in it Adding a fully finished basement can add thousands in value.

Answer 9

Do the basement. Potential buyers will want a garage. They will also love a finished basement. A finished garage is a little weird.

Answer 10

I would say finishing the basement, because it can still be used for it's original purpose, but a garage can't be used as such if it's converted. Plus the front of your house will look weird.