Cheapest Way to Convert Garage to Living Space

The cheapest way to convert a garage to a living space is to use smart, budget-friendly ideas to turn your unused garage into a practical room. This conversion can boost your usable square footage and add value to your home. And you can do this on a budget.

This guide covers everything you need to know about creating extra space in your home, including the legalities involved, finding affordable materials, and using DIY options. Plus, we share some clever design tips that can help you turn your garage into a beautiful living space.

Permits and Safety Rules

First, it’s crucial to get a good grasp of the legal aspects of converting an existing built space. This is especially important because you want your home improvement project to comply with local building codes.

Before you begin your garage conversion project, be sure to check with your local building department to get all the necessary permits. Whether you plan to turn your vehicle space into a home office, a guest room, or an entertainment room, get the right permits first.

Keep in mind that zoning laws and permits can vary depending on where you live. In some areas, you might be required to provide additional off-street parking to make up for the lost garage space. So, make sure to do your due diligence. Research permit requirements and budget for them upfront, as it can save you time and money in the long run.

Get Estimates

Before you start your garage conversion, get quotes from multiple contractors. This will help you figure out how much it’ll cost and plan your budget. Reach out to several contractors to get a range of prices. 

If possible, try to get a breakdown of materials, labor, and any extra fees. This will give you a clear idea of where your money is going and help you spot any potential savings.

Here are some tips to remember:

• It is recommended that you get more than one quote to compare prices and services.
• Make sure that the contractors are licensed, insured, and have good reviews or references. 
• Ask for a detailed breakdown of the costs to avoid any surprise fees and know exactly what you’re paying for.

If you decide to get a RenoFi loan for your project, then we’ll do a comprehensive feasibility study and contractor due diligence, verifying licenses, insurance, etc on your behalf as part of our process. 

Decide Whether to Do It Yourself or Hire Professionals 

Now that you know the costs of your garage conversion project, it’s time to decide if you’ll tackle the project yourself or hire experts.

If you’re handy and have done home improvement projects before, taking the DIY route can save you a lot of cash. Tasks like painting, installing trim, and even laying flooring are doable for most DIY fans.

Here’s the thing, though.

DIY takes a lot of time, effort, and skill. Be realistic about what you can do and how hard the tasks are. Remember, you want a high-quality, safe, and code-compliant result.

On the other hand, hiring professionals might cost more, but they’ll do the job right and up to code. This is super important for tasks that need special skills, like electrical work, plumbing, and structural changes.

Professionals bring experience and know-how to ensure the job is done efficiently and complies with local regulations. They can save you time and give you peace of mind by handling the complex parts of your project.

Set Your Budget

Now that you have your quotes and know if you’re doing it yourself or hiring professionals, it’s time to set a realistic budget for your garage conversion project.

Make sure to include a cushion in your budget, around 10-20% of the total cost, to cover any surprises that might come up.

Additionally, decide what’s most important to you in the conversion and focus your budget there. For example, you might care more about insulation and flooring than fancy finishes.

Lastly, remember to track every penny you spend as you go. This will help you stick to your budget and make changes if needed.

Consider Future Needs

When you’re turning your garage into a living space, don’t just focus on your immediate needs. Take a moment to factor in how your needs might evolve. Here are some things to keep in mind:

• Flexibility: Make the space versatile. For example, if you’re turning the garage into a bedroom, add storage or furniture that can be used in different ways.
• Family Growth: If you think your family might grow or change in the future, plan the space accordingly. This might mean adding more outlets, bigger windows, or extra storage.
• Aging in Place: Consider features that will help you or future occupants stay in your home as you age. This could include wider doorways, easy-to-navigate layouts, and accessibility features.

Cut Costs With Affordable Materials

To help you avoid the hefty price tag of a full-blown addition, here are some suggestions for using budget-friendly materials to keep costs low.

Use Cost-Effective Insulation

Rockwool batts or fiberglass are great options for insulating walls and ceilings. They are affordable and effective when it comes to temperature control.

Choose Budget-Friendly Flooring

Laminate or luxury vinyl plank flooring is durable and looks great. Plus, they are much cheaper than hardwood. Painted concrete is another budget-friendly choice, and it’s stylish, too.

Repurpose and Reuse Materials

One smart thing you can do when looking for the cheapest way to convert garage to living space is to salvage materials from other parts of your home or opt for second-hand items. Think refurbished cabinets and reclaimed wood ― besides saving you some money, they can add character to your space.

Affordable Windows and Doors

Visit your local home improvement stores to find overstock windows and doors at considerably lower prices. You can snag great deals on these essential elements for your garage conversion.

Economical Lighting Solutions

Use affordable lighting solutions, such as recessed lights and track lighting, to brighten up your new space. You can opt for LED bulbs, too, as they will save you money in the long run with their energy efficiency and long lifespan.

Buy in Bulk

To reduce costs, consider buying materials like paint, insulation, and flooring in bulk. Keep an eye out for sales and discounts at home improvement stores to maximize your savings.

Explore Home Renovation Loan Options

While it’s possible to cut costs when converting your garage into a living space, it still requires a considerable investment to do it up to standards. In some cases, garage conversions can cost anywhere from $5,000 to over $50,000, depending on the size of the garage, the type of conversion, and where you live.

Thankfully, paying for your garage conversion doesn’t have to be difficult. You can consider several loan options, including:

• RenoFi loan
• Cash-out refinance
• Home equity loan
• Home equity line of credit (HELOC)
• FHA 203(k) loan

RenoFi Loans for Your Home Renovation

While a traditional 90% LTV HELOC may sound like a viable option to fund a home renovation project, it often doesn’t work because the available equity isn’t enough to tackle your entire wishlist. One way to solve that is to take into account the After Renovation Value of your home and use that to increase the available equity - this is what RenoFi loans do. 

Let’s reimagine this scenario with the same details: Suppose your home is worth $500,000, and you owe $400,000 on your mortgage. You’re planning a renovation and anticipate the post-renovation value to be around $640,000. Currently, with an 80% loan-to-value (LTV) ratio, you have no borrowing capacity to fund your renovation. However, with a RenoFi loan, you can leverage an LTV of up to 150% or 90% of the after-renovation value.

In this scenario, a traditional home equity loan would leave you with zero borrowing power, but a RenoFi loan can provide up to $176,000 based on your home’s increased value after the renovation.

If you’re considering a home renovation, RenoFi offers the smartest financing solution for your project. Discover more and explore your borrowing options here.

Get started with your RenoFi loan here

Tips for Converting Your Garage

Insulate the Walls

Most garage walls and ceilings aren’t insulated. This means your new living space might get chilly in the winter and uncomfortably warm in the summer. You want to add insulation to make sure your space is comfortable throughout the year. 

Fiberglass or rockwool batts are budget-friendly options for walls and ceilings. You might need to remove any existing drywall to install the insulation but check with a professional for alternatives that might work without taking down the drywall.

Raise the Floor to Make It Feel More Like Home

If your garage is lower than the rest of the house, as it usually is with most houses, you can raise the floor to make the space feel more like part of your home. You can add sleepers (wooden planks) to lift the floor above the concrete. It’s also a good idea to add insulation under the new floor to keep it warm.

Add a New Floor Covering

You’ll want a durable floor cover for your concrete.  Tile, luxury vinyl plank (LVP), or some types of engineered wood can be good options.  Make sure to choose a variety that’s water-resistant and handles wear and tear well. 

Keep Your Ceiling High

Aim for at least 7.5 feet for a comfortable living space. This way, you reduce the chances of feeling cramped, especially if you’re tall. Remember, local building codes might have specific requirements, so check with your building department. If you’re raising the floor, factor that in as well. You’ll need enough remaining space for a comfortable ceiling height after the new floor goes in.

Brighten Up With Windows

Besides letting in natural light and fresh air, having more windows can make your converted space feel bigger and more inviting. Remember to check your local building codes for minimum window size requirements.  

Install New Drywall

If your garage walls already have drywall, you might need to finish them to make them look nice. If there’s no drywall, you’ll need to install it after insulating the walls.

Build in Enough Lighting

Add at least one wall-controlled light switch. Garages usually have this already, but you might need more lights to brighten up the space.

Replace or Insulate Your Garage Door

Decide whether to keep the garage door or replace it with a wall. If you keep it, make sure to insulate it well. This decision can affect how cozy and energy-efficient the space will be.

Benefits of Converting Your Garage

• More Living Space: A garage conversion can be a versatile space that you can customize to fit your needs, such as a guest room, home office, or gym room. This can really boost your quality of life and make your home feel more amazing.
• Increased Property Value: A garage conversation can considerably boost your home’s value as long as it’s done properly. The additional living space can make your home more attractive to potential buyers, especially in areas where extra living space is highly valued.
• Budget-Friendly Bonus Space: Compared to building an addition or moving to a bigger place, converting your garage can be way more affordable to get an extra living space.
• Energy Efficiency: Insulating the walls, floor, and ceiling of your new space makes it more comfortable while also helping you save money on your energy bills.
• May Not Require Planning Permission: In most cases, garage conversions don’t need planning permission, which means you can avoid the hassle of applications and potential appeals.
• Quick Construction: Garage conversions are super quick to build because you’re working with an existing structure. This makes them a practical and more affordable way to give your home a boost. Plus, it’s a lot less messy than a full-blown construction project.

Downsides of Converting Your Garage

• Loss of Storage Space: One of the biggest downsides of converting a garage is giving up the extra storage space it previously provided. If you’re like most people, you probably stashed your sports gear, tools, and other random items in your garage. When you convert it, you’ll need to find new places to store all that stuff, which can be a real challenge.
• Parking Issues: Another thing to consider is where you’ll park your cars. If you convert your garage into a living area, you’ll need to find a new spot for your vehicles. This can be a real pain if street parking is tough in your area or if you have more than one vehicle.
• Structural Changes: When you convert a garage, you’ll likely need to make some significant changes to the space. This might include taking out the garage doors, adding windows, insulating the walls, and connecting the new area to the rest of your house. These changes can add to the complexity of the project and might affect the timeline.

Final Thoughts

Turning your garage into a budget-friendly living space is doable. It just takes some smart planning and creative thinking. Start by focusing on the must-haves, and then get creative with ways to save money.

If you need help making your garage conversion dreams a reality, RenoFi is here for you. RenoFi loans are the smartest way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the After Renovation Value of your home. This allows you to borrow on average 11x more, get a low monthly payment and keep your low rate on your first mortgage. 

If you need help making your garage conversion dreams a reality, RenoFi is here for you. We’re experts in home renovation financing and can help you find the perfect loan to fit your budget. Contact us today let’s help you turn your vision into reality.