Want some inspiration for converting your garage? Here are 13 garage conversion ideas + learn about 5 big mistakes to avoid that every homeowner should know.
It’s really cool to see the creative ideas that homeowners come up with when converting a garage into living space.
Sometimes it’s super obvious the room was originally built as a garage and the homeowner is simply using the space in a different way that best suits their needs.
Many garage conversions are so seamlessly renovated that most people wouldn’t guess the room used to be a place to park a car.
I am going to share with you garage conversions that I have encountered to help inspire your own unique concept.
Along with ways to avoid 5 big mistakes that could cost you time, money and headaches.
This post is all about garage conversion ideas and 5 big mistakes to avoid that every homeowner should know.
13 Garage Conversion Ideas
The cost for converting a garage can vary tremendously depending on the homeowner’s budget and needs.
Below is a list of some of the coolest types of garage conversions that I have run across while appraising homes in the Philadelphia metro area:
Family room
These are the most common because usually the family is happy with the location of their home but they just want some more space.
In-law suite
Super versatile and becoming more popular because these spaces have their own kitchen, bathroom and private entrance. In-law suites can also be used as a separate living space for college age kids or a convenient guest quarters for visiting family or friends. In the appraisal world we call these accessory units.
Exercise room
I have seen everything from a wall of mirrors with ballet bar to a full-on expansion into a pro-basketball sized court. These rooms usually have a specific type of flooring and easy access to a bathroom.
Mediation / Yoga spaces
These rooms are usually very minimalistic, serene and cozy. Simple to create since the requirements are few.
Bedroom
The bedroom would include a closet, easy access to a full bathroom and an exit to the outside in case of emergency.
Teen Hangout
Every mother and teenager’s dream lol – these rooms usually include built-in shelving for a tv and gaming systems.
Mancave / She Den
Often includes a built-in wet bar, speakers with surround sound and decorated very specifically for a favorite sport or past time. It’s probably the original garage conversion!
Home Office
With so many people who now work from home and driving less, the garage has become the space that gets converted to suit this need. Plus, it’s pretty simple to create in order to serve it’s purpose.
Artist studio
Probably the most beautiful garage conversion I have ever seen was created by a local artist. She converted her 2 story A-frame attached garage into an artist studio with floor to ceiling windows that overlooked a scenic part of the Delaware River. It was so peaceful and inspirational.
Custom collectables space / Hobby room
I’ve enjoyed touring all types of hobby / collectables rooms. Built-in train platforms with shelving built for tracks on the walls are super fun! Plus, the owners are excited to show you how it all works which is always a happy adventure.
Craft room
Craft rooms will have special built-in’s depending on the type of craft. Imagine what is needed for wood working, pottery, glass-blowing, wine-making, etc.
Kid’s playroom
These are pretty rare because access to the garage may not been convenient for the parents to keep a close eye. These garage conversions usually have the soft foam type of flooring.
Music studio
Sound proof panels abound! And there is often a Murphy bed affixed to one of the walls.
RELATED POST: Why Adding a Bedroom Doesn’t Automatically Add Value to Your House
5 Big Mistakes to Avoid When Converting a Garage
Before you begin any major project, it’s a good idea to get a house appraisal.
A home appraiser can tell you how this project will affect your market value.
For instance, if you are converting a garage to living space then you will want to know if more living space will add value AND how will the lack of a garage affect your ability to sell your home?
After you have made your decision to follow through with the garage conversion there are 5 big mistakes you will want to avoid.
These mistakes can cost time, money, the inability to refinance your mortgage and perhaps the future sale of your house.
And, as you will see in a minute, these mistakes are not just applicable to garage conversions, but also to many other home improvements that you may complete on your house.
Depending on where you live… all of the following information may not be applicable to you.
But if you live where I work ( Philadelphia and the surrounding suburbs ) then you’ll want to pay close attention to the information below.
Mistake #1: Not Obtaining a Building Permit / Construction Permit
The most common big mistake that we encounter is when the owner decides to not get a building permit / construction permit.
I’ll tell you why this is a big mistake in just a second.
But first, let’s understand the reasons why homeowners choose to not get permits.
- The homeowner wants to save money by avoiding the cost of the building permit.
- The homeowner is afraid their real estate taxes will increase.
- The homeowner does not want someone else telling them how to make the improvements to their house.
- The homeowner does not want to deal with the headaches that may result from all the possible red tape and the extra time waiting for inspectors the approve the work.
Here is why not obtaining a building permit is a big mistake:
When the homeowner tries to refinance or sell the home, the lender will send an appraiser who will inspect and measure the house.
Then, the appraiser will notice the measurements, number of bedrooms, number of bathrooms, and/or number of kitchens are different from the tax records.
Sometimes, the differences are easily explained.
But, many times it’s because the homeowner did not pull building permits when adding living space or extra rooms to the house.
Also, no matter how nice an addition, garage conversion, extra bathroom, or extra kitchen is…. the appraiser can usually tell that it’s not original to the house. Not always, but usually.
So, now our client, the bank, will want to know why there is a difference between our observations and the tax record.
The bank will also want to know if building permits were obtained.
In our market area the building permit rules and regulations are set by the individual townships, cities and boroughs.
Every location is different, the rules vary and, are often modified.
Therefore, the appraiser must call the codes department and ask if permits are required to complete the renovations or improvements.
Philadelphia is probably the most challenging area in our market.
If the homeowner did not obtain permits but, the codes department states that permits are required, then the bank will make a lending decision based upon that information.
Every bank is different.
But, it’s not unusual for the homeowner to be required to obtain the building permits prior to refinancing or settlement.
This requirement may be enforced by the township in order to provide a “Use and Occupancy Certificate”.
Or, this requirement may be enforced by the bank in order to provide financing.
And, the process of obtaining the building permit may be more difficult and costly than if the building permit was obtained from the start.
It will definitely be more stressful.
Sometimes, the improvement is unable to be permitted and the only way the homeowner can refinance or sell the house is to remove the improvement.
Mistake #2: Not Installing a Self-Fueled Permanent Heat Source
If you have obtained an appraisal before beginning this project the appraiser will probably assume that you are adding a self-fueled permanent heat source.
In our market area, a self-fueled permanent heat source is the norm.
Therefore, adding a room or converting a garage into living space which is heated only by a wood stove, fireplace or plug in electric heater, it will not be acceptable to the market.
Unfortunately, the lack of a self-fueled permanent heat source will also cause this room to be not included in the gross living area.
This is because typical lender requirements state that these types of spaces need to be valued separately.
Even if the finished space is completed in a way that is similar in quality and condition to the rest of the house, we cannot include it in the square footage without a self-fueled permanent heat source.
This is not something that you want to happen because many underwriters have a tough time wrapping their head around a unique scenario.
Plus, the appraiser will need to explain the affect upon market value and the underwriter may not like the result.
WHAT YOU NEED TO KNOW:
Self-fueled permanent heat sources are either connected to the main house heating system or they may be an individual system.
A self-fueled heating system is NOT a fireplace, wood stove, or plug-in heater.
The many options of self-fueled permanently installed heating systems which are accepted in our market area include:
- forced warm air
- radiant
- hard-wired baseboard
- mini-split
The type of fuel which is generally accepted in our market is:
- electric
- natural gas
- propane
- oil
FOR EXAMPLE:
Your house is 2,000 square feet and your garage is 400 square feet.
You convert the garage into living space by adding insulation, drywall, carpet, install custom shelving, and it’s finished to the same quality as the rest of your house.
Once this is complete, you are probably assuming that your house is now measuring at 2,400 square feet.
This is true, IF you have added a self-fueled permanent heat source.
However, if your heat source is a wood stove, fireplace or plug in heater then things get complicated.
Complicated = a greater possibility of rejection of the loan.
Mistake #3: Not Disclosing on the Seller Disclosure
Pennsylvania law requires the Seller to provide the Buyer with a Seller Disclosure.
It’s been many years since I have sold houses but I was taught to provide this seller disclosure PRIOR to the buyer signing an agreement of sale to purchase a house.
The seller disclosure basically tells the prospective buyer everything the seller knows about the house.
EVERYTHING.
Everything includes the addition of living area, conversion of a garage, adding a bathroom or kitchen.
Everything includes whether or not you obtained building permits.
Everything includes what type of heat is provided throughout the entire house.
Everything means Everything.
If you decide to omit something then it would be a great idea to plan on retaining an attorney.
Mistake #4: Not Informing the Realtor
Let’s assume you have already made mistake #1 and now you want to sell your house.
A seasoned realtor will notice if the house looks different than what is reported on the tax record and they will ask you questions about building permits, heat, etc.
But, maybe the realtor didn’t notice?
Just because the realtor hasn’t asked then it doesn’t give you an out.
Remember, the appraiser will notice, and the headaches will be worse if you let it get that far.
Your realtor is your advocate.
And your realtor will be able to do a better job representing your best interests if you are completely up front about everything about your house.
Tell your realtor about the unpermitted improvements or the lack of permanent heat.
This way your realtor can help you get everything squared away in order to make the selling process much smoother for you.
So, by the time the appraiser comes for the inspection, all of the unpermitted issues or unacceptable heating sources have already been resolved, which makes life so much easier for you.
Mistake #5: Not in Compliance with Zoning
Let’s suppose that you have obtained all the required building permits to converting a garage into living space, building an addition or adding another bathroom or kitchen.
But once the project is complete, you have decided to use this space in a different way from the original purpose.
It’s important for the homeowner to understand the zoning code and what the permitted use is for these improvements.
Here are 2 common examples of not being in compliance with zoning:
#1 – Using the guest quarters or in-law suite as a rental unit.
This use is prohibited in many areas of our market.
So, before you rent out that accessory unit be sure to know if you are allowed to do that.
Just call the zoning officer and ask.
If they say yes, then awesome! You now have a source of legal rental income.
#2 – Running a commercial business from a residential-only property.
This use will get you into hot water with a township / city / borough zoning officer.
A home office (working from home) is different from a commercial business.
If you are running a commercial business from a home without the proper zoning then refinancing or selling the property becomes complicated.
There are many ways for the appraiser to know if you are running a commercial business from your home.
So, before you open a commercial business, be sure you are located within an area that permits this use.
Hopefully, I have inspired you, and also helped you to avoid big mistakes.
If you have any questions, please reach out. I am always happy to help!
This post is all about garage conversion ideas and 5 big mistakes to avoid that every homeowner should know.
