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Start by assessing your needs, setting a realistic budget, creating design plans, and selecting materials. Consulting professionals for advice can streamline the process.

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.

In some cases, a detached garage can be considered extra living space, but you will need to gain permission and comply with your local building code. Depending on where you live, you may need permits for a variety of installations, including electrical work, plumbing, and structural work. Many homeowners make the mistake of converting a garage into a living space without acquiring permits, which can result in hefty fines and even the removal of your hard work. Furthermore, a detached garage doesn’t add to the livable square footage of your home when it’s time to sell.

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.