How was it listed when you saw it first. And what features of the home made you purchase it?

It was listed as 3600 square feet, 4 bedrooms and 2.5 bathrooms. I have no idea how they figured that. We bought it primarily for the acreage (6 acres, not huge but large for the area). Features of the house that we liked were the enormous living rooms, rustic fireplaces, and giant picture windows in the kitchen and dining room. The garage area was a definite downside, and we'd convert it back to a garage posthaste if we didn't have more pressing issues inside the actual house.

Was the garage conversion permitted? If not, there are plenty of buyers who would demand that it be returned to it's former use. The local codes office might even demand that if they knew it existed also. People aren't real happy to see crappily done DIY work in a home and usually want price concessions for that. It might benefit you to tear it out before you ever list so that what you're selling matches the official description.

It was apparently permitted and up-to-code when we got it. Our bank was reeeeeally thorough with their appraisals and so forth since it was a foreclosure, and they decided it was okay. It's just kind of unsightly inside. We're currently debating spending the money to return it to being a garage, but I'm not sure if that will give us a better return or not over replacing the nasty upstairs carpeting for about the same amount of money.

Is there another garage?

You will definitely take a bigger hit on value if there is no garage.

No, there's no other garage, but very few other houses in the immediate area have garages, either. I'll look into how much it'll cost to convert this one back to being a proper garage.

And then ask a knowledgable agent how much the garage will increase the value of the home vs. not having one. Then compare the two #s. There's your answer.

I would not include the converted space in the description, but would add "potential in-law apartment." But I would list the entire square footage.