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Whether a garage or an extra room adds more value depends on several factors, including local market demand, location, and typical buyer preferences. Generally, added living space is highly desirable to most buyers, which can make an extra room more valuable than a traditional garage. The return on investment (ROI) often depends on the utility of the new space; for example, an additional bedroom is typically more valuable than a new living room, and converting a garage into a bedroom with an en-suite bathroom will likely add the most value. A well-designed extra room can also serve specific needs, such as a home office, guest room, or entertainment space. However, adding a garage may be more valuable in areas with limited street parking or harsh climates where protecting a vehicle is a priority.

The first place you start with any garage remodel, regardless of the project, is with repairs. You want a stable foundation to avoid problems from arising down the road. Once any necessary repairs are addressed, you’ll want to move on to layout changes, like installing new walls, running new electric, plumbing, and HVAC to the space, if required, and then finishing work.

A prefab, or prefabricated garage, requires far less construction work than one with a foundation and frame, but it’s not nearly as desirable and may not be a worthwhile option. A prefabricated garage won’t be as durable or long-lasting, and it doesn’t provide the same protection for your belongings and vehicles. Plus, you can use a standard garage for more uses—like living space—whereas a prefab garage only serves as a space for storage. Lastly, building a traditional garage will add to your home value, while a prefab garage usually won’t.

The most common garage door material is aluminum, but the best material for you depends on your budget and location. Wood is the most expensive to repair but tends to add the most curb appeal, while fiberglass or composite doors cost less to fix.

Aluminum won’t rust, so it’s a great option if you live somewhere humid or rainy. Steel doors are durable but are prone to rust. If you live somewhere with extreme temperatures, hot or cold, you might opt for fiberglass, which won’t split if the temperatures skyrocket or drop below freezing.