To tear down or not to, a 1-car detach garage (bad condition) to increase appraisal value

[ny_lim]

2bd 1 ba SFR in San Jose, CA. Most houses in the neighborhood have a 1 car detach garage.

Tight on budget, will need to get a refinance (thus appraisal) before moving on to the next project of converting the garage to GLS.

Garage was previously converted illegally to a studio. Have been torn down to the bear bones. Floor needs to be refinish. Roof and framing barely remaining and would need to redone.

My question is whether leaving the garage will add value to an appraisal or should i just tear it down?

 

[Renee Healion]

If you tear it down, could you ever rebuild it under local regulations? Could you make it look like other garages in your neighborhood without spending much?

 

[Mark K]

If you tear it down, could you ever rebuild it under local regulations?

IMO, this is the most important question to answer before anyone tears it down. Find the answer to this before you try to answer the 'remodel' question.

 

[ny_lim]

Existing garage structure is in poor condition and will most likely not pass any building inspection.

To restore the garage will be equivalent to building a new one.

I was wondering if i should leave it or tear it down, before an appraisal?

 

[Flakey]

I was wondering if i should leave it or tear it down, before an appraisal?

If you tear it down, could you ever rebuild it under local regulations?

This is the answer to your question

 

[Tom D]

i live in a city where the expensive townhomes/condos have a $40,000 garage adjustment. other areas, garage is minimal. easy to get a cost to rebuild number on many web sites. if parking is an issue where it is, then a garage is a wonderful thing. why don't you do a FHA 203k to redo the garage if that is the value, or legal living area conversion. have you first tried a line of credit on the house, no appraisal. doesn't cost anything to see what lucky value the computer will attach. might give you the cash to do that project, then refi. maybe just call a local realtor and ask them your question, free of charge. call 10 of them if you want. appraisers do that to get a better feel for any particular item.

 

[J Grant]

2bd 1 ba SFR in San Jose, CA. Most houses in the neighborhood have a 1 car detach garage.

Tight on budget, will need to get a refinance (thus appraisal) before moving on to the next project of converting the garage to GLS.

Garage was previously converted illegally to a studio. Have been torn down to the bear bones. Floor needs to be refinish. Roof and framing barely remaining and would need to redone.

My question is whether leaving the garage will add value to an appraisal or should i just tear it down?

Have you considered getting a 203k loan rather than refinancing ? ( 203k pays for remodeling or repairs, not sure if it combos with a refi or not)

As far as tearing garage down, it would remove any possible appraisal problems such as it getting marked a safety issue or making subject to repairs etc. Though some appraisers would just leave it be and call it not contributing to value due to condition. Leaving the garage in place might not add value or such a small amount not worth it vs any issues it might cause...post photos of it to get feedback.

 

[nstanbru]

Renee asked a good question about regulations allowing rebuilding if you tore it down. On the other side of the coin, does the city code require enclosed parking? If yes, it's possible code enforecment may require you to rebuild. You might want to check into the possibility of that happening.

 

[glenn walker]

2bd 1 ba SFR in San Jose, CA. Most houses in the neighborhood have a 1 car detach garage.

Tight on budget, will need to get a refinance (thus appraisal) before moving on to the next project of converting the garage to GLS.

Garage was previously converted illegally to a studio. Have been torn down to the bear bones. Floor needs to be refinish. Roof and framing barely remaining and would need to redone.

My question is whether leaving the garage will add value to an appraisal or should i just tear it down?

In California due to code compliance and zoning issues I woudl not tear the garage down because as long as it's standing you can use the same foundation and essentially just repair or remodel it. IF YOU tear it down then when you decide to rebuild it that will be to new building codes and even teh old foundation may not make it due to age, size etc and suddenly you have a much larger expense than leaving the old structure in place.

 

[ny_lim]

Thanks for the feedback thus far. Here are some photos of the poor condition of the garage.

This is an investment property, so i don't think it will qualify for 203k because of the owner occupancy rule.