Finished Garage add Value?

[toddtodd]

Hi there; we have had an appraisal done in the past where the appraiser said our finished garage did not count towards our sf because it was not a stand alone apartment with 220v for a stovetop. The garage is finished with plumbing and bathroom. Thoughts? thanks in advance.

 

[ramrcdk]

Typically a "garage" is for parking cars.
A garage that has source of water & half bath or full bath would need to be considered as being typical in your market or unique-not found often enough
"from market saleS of similar utility-use-appeal".
1 sale (does NOT a stream of data make) is typically not sufficient data for market evidence.

Where the garage has been "finished for living space" ...to be included within the "main GLA- heated area: there are certain rules-guidelines it must conform to & comply.
IF for lending, a loan, say as in a refinance: the specific lender will have guidelines for ADU's, second kitchens, Accessory Living Areas. (And perhaps IS what the past appraiser meant.)
Example: Wells Fargo has a separate questionnaire for conformance to their specific lending criteria.

Not to get Too in-depth: most often a finished garage does not meet criteria to be included in the main heated area due to differences in the: quality of finishing, heat & air attached to the main system
OR recently a mini-split system does conform where permitted. Google: ANSI Measuring Standards definition.
By your post, is it a garage, used as a rental, being referenced as an "Apartment"?
Perhaps, you should contact your Lending REP to alleviate surprises & delays to your process.

 

[toddtodd]

Well, the last appraisal excluded the space as being counted towards our total sf because it could not be used as a stand alone apartment (no cooking facilities), but not because we wanted to use it as such. We are happy with a 400 sf laundry / tv / rumpus room. But it seems silly not to count the space at all. Finishings are all good.

 

[ramrcdk]

Well, the last appraisal excluded the space as being counted towards our total sf because it could not be used as a stand alone apartment (no cooking facilities), but not because we wanted to use it as such. We are happy with a 400 sf laundry / tv / rumpus room. But it seems silly not to count the space at all. Finishings are all good.

Mam, Review your appraisal report: most likely IS counted just NOT as MAIN square footage. The report's second page will have the GLA line with # of bedrooms & baths
& (likely below that) a line which gives "value" to your rumpus room, attached, detached, or not. I am "sure per compliance to the lender's specific instruction: there WAS a reason.
When you finished it, did you go though the City Permit Office? Just curious.
To be clear, glad it doesn't have cooking facilities, sounds like an oversize fun garage-used-to-be that WAS given value ...just ON a separate line in the GRID section of the Report.
Not sure to the : WHY he would have referred to it as an Apartment. My take on what I understand: changed after the original age use as a garage
: a rumpus room that used to have cars in it !.
Good Day!

 

[Tim Hicks (Texas)]

Detached, attached or built in garage?

 

[Terrel L. Shields]

Gross Living Area is reserved for finished living space "on grade". A converted garage is not gross living area and has to be dealt with separately.

 

[KHS445]

Was the finishing of the garage and the installation of any wiring/plumbing etc. completed after the issuance of a building permit and was it inspected and approved by the proper authorities? Is the garage area finished (floors, walls, ceiling, trim, HVAC, etc.) using the same quality of materials and workmanship as the balance of the dwelling? Is the flow of the house and access to the garage seamless, or does it feel more like one is going into a former garage area that is accessed down a back entry/hallway?

Not that these questions are all inclusive, but they are just some of the things an appraiser would need to consider as to whether the former garage is included in your homes GLA. The majority of the time this is not the appraiser's independent call, but is based on criteria required by the lender/client. That said even though the garage area was not included in the GLA its value maybe listed on page 2, and it could be shown in several areas. You may have been given value for having an attached two car garage on one line and then additional value was given for the finish in the garage on another. Now the $64,000 question, did the appraiser deduct any value in the report for your not having a usable area for car storage garage while one or more of the comparables may have included a traditional garage?

Without seeing your home and the interior and without seeing the report it is tough to give you more specific answers.

 

[Tim The Enchanter]

This kind of question is sort of like,
What oil should I use or what tires should I run thread on a car or motorcycle site.

Is the vehicle door still there and functional?
If so, it's a garage with a bonus bath.

 

[Ariba]

Is a garage to store cars typical in your market? If so, not having a garage might a negative or offset the addition GLA.

 

[ramrcdk]

Is a garage to store cars typical in your market? If so, not having a garage might a negative or offset the addition GLA.

Yes true & a portion of the SCA process.