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Convert garage or not?

Hi everyone,
My friend lives in a 4 bed detached house. She would like to move, but she is in negative equity so is unable to sell at the moment. She feels like she needs more room in her house and is considering converting the garage into an extra room which would act as a family room. She thinks this will cost about 10k. My concern is that she is actually devaluing her house by getting rid of the garage. I think that anyone wanting 2 sitting rooms will look at bigger houses in her area which also have a garage.She feels she will be adding value by having an extra room.
So, what do you think? will it add value or devalue property?
Thanks!
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