Friday, January 16, 2015

Garage to Bedroom Conversions

In Venice, a lot of homes have 2 bedrooms.  Since so many buyers and investors come from out of the area, they are conditioned to believe that converting a garage space to a 3rd bedroom creates value and increases demand.

That's not necessarily the case.

3br home with garage conversion in South Venice

I picked the South Venice area to compare the most recent sales of 2 bedroom homes, and 3 bedroom homes without garages that were obvious conversions, over the past 90 days.

2 bedroom homes sold for a median price of $134,000 at $96/sq ft, and sold within 37 days.

3 bedroom homes without garage sold for a median price of $139,900 at $82/sq ft, and sold within 55 days.

Why is this type of 3 bedroom home actually less valuable?  The two major reasons are that Venice attracts retirees that don't need 3 bedrooms, and buyers and tenants are interested in covered, secured parking.

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