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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.

An insulated garage door is a great long-term investment if it’s within your budget. They save energy and give the door year-round usability. In other words, the door pays for itself after a few nasty winters. Most modern garage doors already have a fair amount of insulation, so look into those options if you don’t feel comfortable splurging.

Having a garage can increase the value of your home considerably, even if the garage isn't considered living space. Many people own cars and want a secure place to park their vehicles when they are home. 

If you decide to finish your garage and convert it into living space, you may affect your home's value. The livable space may increase your home's square footage, which can help its value. But, giving up the garage space may also negatively affect the sale price of your home.

It is typically cheaper to build a garage than to buy a prefab one if you can provide most of the labor yourself. If you plan to hire a contractor for the entire build, a prefab garage or kit will likely be less expensive. However, even with a garage kit, you may still need to hire professionals to install the foundation, concrete floor, and handle electrical and plumbing work. If you are not an experienced builder, it can be a worthwhile investment to hire a local garage builder who can manage all aspects of the project, including coordinating other necessary professionals.