Ask an appraiser how much it’s worth, and you’ll likely hear “it depends.” That’s not an attempt to dodge the question. It’s an honest response. I’m a residential appraiser based in Tacoma’s North End, serving Kitsap, Thurston, Pierce, and southern King Counties. Across these sub-markets, I commonly see garage contribution in the $7,000–$17,000 range, with occasional cases above that when utility is enhanced by external factors (for example, Frederickson).
North End vs. Central Tacoma: Same Homes, Different Land Values
Consider two adjacent Tacoma neighborhoods: the North End and Central Tacoma. On paper, the housing stock is broadly similar in age, size, and condition; they’re separated primarily by Sixth Avenue. Repeated calculations show North End homes selling about 17% higher than otherwise similar homes in Central Tacoma—typically between 16–19%, depending on the type of home. Why is there a price difference? Location. It’s the land. The actual structures do not cost any more to build on either side. And, strangely, in both of these markets, garages are small, in disrepair, and sometimes inadequate to house modern vehicles. In practice, I often reconcile around $9,000 for garage contribution in either of these neighborhoods. That makes sense. They are old, they’ve depreciated, and they may be halfway done with their economic life.
Graham and South Hill: Newer Tracts and Three-Bay Norms
Now, contrast those neighborhoods with Graham and South Hill, where tract housing is abundant and most of the housing stock is newer. Three-bay garages are common in Most Graham developments. Ongoing new construction demonstrates that builders have identified demand and buyers are willing to purchase it. Although the same house would typically be worth less in Graham and South Hill than in Tacoma (the land itself is less valuable), garage contribution is often higher because the garages are newer and demand is stronger. In these neighborhoods, I frequently reconcile a garage contribution of about $12,000 using the cost approach (the cost to build new, depreciated by age). This approach reconciles comparable sales very well.
When Cost and Contribution Diverge (Superadequacy)
In reality, the cost approach isn’t the only way to value a home, and buyers don’t sit down to do depreciated-cost math. Market participants value the first thing more than the second, third, or fourth; the contributory value of the same feature typically diminishes. Think about bathrooms: the first is valued far more than the second. Over time, the cost approach breaks down because cost and contribution diverge. If the home is not typical of the area, the cost approach can be a poor way to establish value, and as an appraiser exercising good judgment, I would consider other methods to identify value.
Take a custom ten-car garage in a suburban Graham neighborhood where three bays are typical. The market will likely value three bays, might recognize a fourth or a fifth, and then stop—additional capacity is no longer priced in. In appraisal terms, this is called a “superadequacy.” Just because you can build it does not mean you’ve created value.
Frederickson Case Study: Industrial Proximity and Oversized Garages
Of course, there are many methods an appraiser can use—paired sales, adjusted paired sales, grouped sales, adjusted grouped sales, sensitivity analysis, and, where the dataset supports it, neighborhood-level modeling. Sometimes the cost approach is not the best. Especially when the subject or market is unique. For example:
In Frederickson, a large light-industrial district with fulfillment centers and manufacturing anchors the area. Surrounding this district are several tract developments. A distinct submarket has emerged because of proximity to light-industrial work, and it behaves differently from tract homes in Graham, South Hill, and even other tracts within Frederickson. Homes on larger lots—about 0.5–1.0 acre—situated very conveniently, sometimes across the street from these facilities, show higher garage contribution because buyers can run a complementary business from an oversized or multiple-bay garage with machinery. This effect is highly location-specific to Frederickson’s industrial base; in these cases, the contributory value of a garage can be as high as $24,000—roughly twice the indication in nearby tract homes and more than the cost to build new. And in this submarket, the cutoff for superadequacy is much, much higher.
I haven’t even touched things like, garages with shop space, machinery, extra tall bays, or garages with no doors. So, how much is your garage worth? It depends. Maybe you should ask an appraiser?
