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I am choosing between buying a brand new house. I have two options. Both houses are exactly the same, but one has a 3 car garage, and the other one has a two car garage. The 3 car garage house is $285K, and the 2 car garage house is $280K. I'd love to have a 3 car garage, but I'm not sure if the $5K is a fair price difference. My realtor says $5K is a good markup. Is it ?

I googled how much it would cost me to install a garage, and it turns out to be starting at $7K for a 1 car garage. So, will I win $2K at the time of resale ?

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    What do you plan to do with the extra garage space? – Jason Sooter Sep 5 '15 at 23:47
  • $5K. Go for it. I wish I had another bay. – user35544 Dec 7 '15 at 1:20
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This question brings back memories. Short answer: get the three car garage! It's the best $5k you'll ever spend.

Long answer: I bought my house many years ago, new construction, and made a choice to get the model with the 2-car garage instead of the one with the 3-car garage across the street because the price difference was $15k. The houses were otherwise identical. My thinking at the time: "No way I'm spending $15k for a garage spot!"

Oh, the regrets I have today! I envy my neighbors with the extra garage space. Yes, I only have two cars, but storage space is tight, my workbench is impossible to use without backing the car out to the driveway, and I wish I had spent the money. There will be another driver in the house in a few years and I don't have the option of garaging a third car. How I wish I could go back in time and slap some sense into my younger self.

For $5k, I think it's a no-brainer. In 10+ years, my guess is that the houses with the 3-car garage will have appreciated much more than $5k in value than the houses with just 2-car garages. Like I said, I have regrets.

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    Thank you for sharing your story. I really appreciate it . I think I'll go with the 3 car garage property – user3191304 Sep 6 '15 at 0:16
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If you think <2% price increase is worth it to have the additional space, then it's worth it. If you don't, it isn't.

IMHO it's in the noise, assuming you're not losing too much space in the rest of the house, yard, etc.

  • Aaron, this is not about what I think. Is it worth it financially ? Will I be able to recoup the extra $5 expense at the time of the resale ? – user3191304 Sep 6 '15 at 0:09
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    Worring about time of resale for this is the wrong question. Will you get $5k of convenience/reduced frustration out of it? If so, and you aren't giving up anything, it's a worthwhile purchase. – keshlam Sep 6 '15 at 3:23
  • keshlam reiterated exactly what I was getting at. – Aaron D. Marasco Sep 7 '15 at 0:16
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I googled how much it would cost me to install a garage, and it turns out to be starting at $7K for a 1 car garage. So, will I win $2K at the time of resale ?

That assumes that you can install it for $7,000. If the property with the smaller garage is not big enough, the local government will not allow you to add width to the garage. You and any future owner will be locked in forever.

The first question for you is will you get the use out of it. If the answer is yes, then it probably makes sense.

The resale value issue is: does my choice make my house a better option for a typical resident of this area. Or does my choice limit the ability to sell.

If the choice is a one car garage, but you insist the builder build a 7 car garage. Then you limit the set of potential buyers to those who desire extra-extra large garages. But the reverse is also true. You don't want the cheapest by far.

Look at the other houses that have been built. Have the majority been one option or the other, or are they evenly split. If the split is not heavily biased toward one option the difference in ability to sell is negligible.

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