4 Car Garage (Superadequacy?)

[Pete Palmer]

I am currently working on a new construction appraisal. One of my comps has a four car garage. Typical garages in this neighborhood are three car attached, about 95% of homes in this neighborhood have three car attached garages. The rest with the exception of my comp have two. It is my opinion that the four car garage is a superadequacy and that although the cost to build increases, the typical buyer would not pay more for it. I normally would just throw it out and use another comp, but recent sales of 1.5 story homes in this neighborhood are slim and I need to use it. Should I make an adjustment in the sales comparison grid, or simply state that the four car garage is a superadequacy with no contributory value?

 

[Allen Bruckner]

Do you have a comp that matches it with a 3 car garage?. If no than ask the developer the cost to have a 4 car and perhaps give the comp a negative adjustemnt of 50% of value. You need to determine the value by comparison. Its new construction. There may be other homes that have 4 cag garages, but have not closed yet.

 

[Tim Hicks (Texas)]

I would like a four car garage and pay more for it. It has utility as car storage. It would seem the extra garage space would have some value.

So, if all the homes have 3 baths and yours has 4 baths, you would consider it a superadequacy?

 

[Pete Palmer]

Thanks for the help!

I am getting the same advice here as I am getting from my supervisor. I appreciate the help.

 

[James Andreas]

It may sound trite, but the market should tell. I have neighborhoods where an additional garage space beyond 2 or 3 has no contribution. And 4 baths could be a superadequacy.

If subject and comp are in newly developed tract, perhaps the builder's 4th-garage option pricing is relevant. Heck, maybe the 4th garage spot takes the place of a non-GLA "bonus/rec room" and is actually less accepted in the market. It may be helpful if you state whether these are tract or custom homes, same development, etc. If a custom home, maybe that extra garage space appeals only to the person who built it?

Don't be afraid to leave a garage space, bath, A/C, or other element unadjusted if data and logic convince you the market (TYPICAL buyer) doesn't value it.

 

[Deleted member 77547]

The fourth garage stall might be a more desirable feature if the home is on a slab.

 

[Vegan702]

The fourth garage stall might be a more desirable feature if the home is on a slab.

Curious, why would that matter?

 

[Tom Woolford]

I have had two homes with 4 car garages. Now I'm back down to a two car and am lost. Personally, I would with out a doubt pay more.

 

[Daystar]

superadequacy...i do not think ao... what data do you have to support your analysis?

 

[Deleted member 77547]

Curious, why would that matter?

Because there is no basement to hide all your crap and holiday decorations. That's how it is in my market.