Does a Shed Add Value to Your Home?
Sheds are incredibly versatile and useful buildings. You can use them for storage or turn them into an office, workshop, or even a home gym! The question is, will the appraiser and buyer view the shed as adding value to your home?
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Does a nice shed increase home value?
Some experts say that the typical shed can increase your home value by 1-2%, but others say that a shed won’t increase the property value in any measurable way. However, even if your shed might not add monetary value, it can help sell your property faster. If the house is under 1,200 square feet and lacks storage space, or the property has a small garage or no garage, a shed will be even more attractive to a buyer.
How do I get the most value from my shed?
There are several ways to ensure that your shed is an asset to your property and not a liability.
Keep your shed well-maintained
A shed in poor condition can decrease the value of your property. The last thing that a prospective buyer will want to see is a dilapidated shed that they might have to tear down in the future. If the shed is in excellent condition and will last for years, they are much more likely to recognize the value the shed adds to the home.
Build a foundation
A shed with a foundation will raise the value of the shed. A shed can be considered personal property without a foundation since it can be moved and taken with the owners and will not be included in the appraised value.
Get the correct permits
If your state requires a permit for your shed, it is important to have them. A shed without the correct permits will not be included in the appraisal process.
Build a customized shed
Another selling point will be if the shed is custom-built. A generic prefabricated shed is beneficial but not as attractive as a high-quality custom-built shed. Check out our 3D Shed Builder to customize your own shed today!
Coordinate your shed with your house
Try to match your shed’s style, trim, and color to your house. A shed that matches the house is appealing to potential homebuyers—much more than a shed entirely different from its surrounding landscape and house. Also, the more the shed appears as an extension of your home, the more an appraiser will value it.
How much value does a shed add to a home?
A large-high-quality shed with a foundation, proper permits, and made into a livable space can add up to $15,000. However, most appraisers would say that a shed’s value would only be around 1% – 2% of the property’s overall value if your shed is a basic storage shed—-not much more than its depreciated value.
A shed adds practical value to a property. A storage shed for tools will be perfect if a potential buyer loves gardening. They could also turn a well-maintained shed into a home office. A shed could be the deciding factor for a homebuyer.
Do sheds appreciate in value?
A shed on its own will likely not appreciate, but it can add value to the property that it is on. If the house is under 1,200 square feet and lacks storage space, a shed will be even more beneficial, increasing the property’s value.
Ways that sheds can add value to your property
● Storage
A storage shed on your property is a practical way to add value to your property and save money. If you compare the cost of renting a self-storage facility vs. a rent-to-buy shed, it is easy to see that a shed is more affordable in the long run. Plus, you end up owning a shed!
● Living space
○ Cabin shell finished out for guest quarters vs. building an addition onto the house.
Building an addition to your house can seem like a good idea at first but soon become a drawn-out process, expensive, and way more complicated than first expected. A cabin shell is a more affordable option for an extra room that adds value to your property.
○ Cabin shells turned into tiny homes for rent (AirBnB, etc.)
Turning a cabin shell into a tiny home is another fantastic way to add value to your property. Tiny homes are becoming increasingly popular throughout the US. Now is a great time to turn a cabin shell into a tiny home and rent it out through apps such as Airbnb or Vrbo.
● Business
If you have your own business, you know that renting an office space every month can get pricey. It only gets pricier when you add in the time and gas it takes to commute daily. Fixing these problems can be as simple as turning a backyard shed into your office. Your commute turns into a short walk, and instead of dumping money into a rented office space every month, you can invest in a shed that will last you years.
Is it worth building a shed?
A storage shed can help keep the house organized and the clutter under control. It has the potential to be an office space, a home gym, or a place to host guests! With all this in mind, if you are wondering if you should buy a shed for yourself, then a high-quality shed is indeed worth it.
However, unless your shed has a foundation and has been made into a fully livable space, it will not significantly increase the value of your property. So, if you are considering installing a shed to increase the monetary value of your home, it will most likely not be worth it. On the other hand, a high-quality shed is an excellent investment if you need a storage building for your personal needs. If you are trying to be as cost-effective as possible, maybe a used shed is the right choice for you!
