Parking Profits

Many buyers who purchase a condominium, townhouse or other multifamily attached home appreciate one of the biggest perks of homeownership: the reserved parking space or attached garage that comes with the unit.

But while parking privileges are relished by most, some home shoppers may not have much use for it, particularly if they don’t own a car. Don’t be too quick, however, to try to sacrifice your parking space for a lower purchase price or to convert your garage into a bonus room, say the experts, as those amenities may prove quite valuable down the road.

Always remember that “parking is an amazing asset to any property ownership,” says Monte Levin, a sales agent with Coldwell Banker Residential Brokerage, Boston. “Parking can be a critical element in the value of your property upon resale as well as the convenience of having it day-to-day in a city environment where parking is not readily accessible.”

In other words, even though you may not need your assigned parking space or garage right now, it’s a good idea to hold onto it because the person you try to sell your unit to in the future will likely value the space, says Barry Rosa, vice president, Prudential Connecticut Realty, Rocky Hill, Ct.

“The next purchaser will likely want the garage or surface parking facilities,” Rosa says. “Townhomes without garages are less competitive in the market than those that have them. And most spaces cannot be sold separately from a condo unit. You should have at least one space, preferably assigned to the unit. There should also be sufficient parking for one additional vehicle, as well as guests.”

If you currently lack an automobile, consider that you may own one in the future, making a reserved parking spot or garage an essential commodity to retain.

“The buyer should definitely hold onto their parking space either for visiting guests or if circumstances change down the road and they choose to have a car,” says Levin.

Still, if your unit includes an assigned space that you’re certain you won’t use and you need the extra money to afford the home, you can attempt to swap the space with the builder or owner in exchange for a lower purchase price, says Wes Minton, a broker with Prudential York Simpson Underwood Real Estate, Raleigh, N.C.

In this market, “the buyer absolutely has leverage to negotiate the price if parking will not be used,” Minton says.

This may not be possible, however, if the space is deeded to the unit itself, says Levin.

“It would be wise in this case for the purchaser to consider renting their parking space to someone else for added income,” Levin says, “if the building association rules allow it.”

If your attached home includes a parking garage that you don’t currently plan on using, “it can be converted to use as a children’s play area or family room,” says Kraig Kast, a managing trustee at Atherton Trust Co., Redwood Shores, Calif. “However, it should be able to easily be converted back to its original use should a future owner wish to use it as a garage.” That means don’t plan on bricking up the garage door or partitioning the garage space with immovable walls, he adds.

If the fear of someone else in the building or on the street parking in your spot is giving you second thoughts, relax, says Rosa.

“If someone parks in your assigned space, warnings can be issued by the condo association. In most cases, a vehicle can be towed, but again, this should be done by the management company or association,” Rosa says.

In such cases, “it would be most effective to talk with the property manager and possibly the person who parked in your space,” says Minton.

As time marches on, Kast says, owned parking spaces will become more of a coveted resource that will be in increasingly greater demand—which makes it all the more important to retain your garaged and assigned spaces.

“As land becomes harder to get and the population continues to increase, parking spaces at home and work will be harder to find,” says Kast.

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