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You can convert your garage into an ADU. You’ll need to follow local building codes to ensure your new unit is up to code. For the most part, building an ADU in an existing building is more affordable than building a new one. Even so, consider the condition of your garage before making a decision. Not all garages are in shape for a smooth conversion to an ADU, and renovations can add up in cost.

A garage bump-out is a small addition that extends the size of the garage, usually by just a few feet. Homeowners might install bump-outs to store lawn equipment, sporting gear, holiday decorations, and more. Because you’re not changing the existing garage structure as much, a bump-out isn’t as expensive or labor intensive as a full-blown garage extension. Expect to pay around $1,800–$6,000 for 2-by-10-foot bump-out (and more for larger additions).

A garage conversion typically takes between four and eight weeks, depending on the garage’s size and the project’s complexity. For a detached garage conversion, you may not experience much impact on daily life while it’s under construction, whereas an attached garage conversion can disrupt daily life quite significantly, given its proximity to the rest of your living space. 

Yes, there are a few different ways you can finance new construction. Some lenders offer new construction loans that cover the building costs and then convert to a standard mortgage once construction is complete. Some custom homebuilders also offer financing options that only require a down payment before you begin the building process. Construction loans are possible, as well, although they typically only cover the building process, and you’ll need to pay in full once the house is completed.