Does A Shed Increase Home Value

  • By: Rob
  • Date: April 8, 2022
  • Time to read: 12 min.
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A shed is a great place to store your tools, lawn equipment, and other outdoor gear. Perhaps you have a converted shed with electricity and running water. If you plan to sell your home or are just curious about the valuation of your home, you have to ask, does a shed increase home value?

Sheds can add value to a home but some sheds will add much more monetary value than others. There are a number of factors that will determine if a shed adds monetary value to a home, including the quality of the shed, its location, and whether it is being used for storage or other purposes.

Keep reading to find out more about if a shed increases your home value and by how much. I will also offer some ideas for sheds that may increase their value.

Does a shed increase home value

If you are wondering if your small backyard shed will add much value to your home, then it may, but probably not by much. If you have a much more expensive, probably larger shed with the correct permit and foundation, etc, then it could add a significant amount to the value of your home

add value

The value of your shed will depend on a few things, such as the condition, size, and functionality, for example, has it been converted into an office space, gym, or bedroom with working electricity and water.

A simple storage shed will add less monetary value than a shed that’s been converted into an office or a bedroom.

Sheds can be used for a variety of purposes, such as storage, workshop space, an extra room or even a home office. If you live in a neighborhood with an HOA, it’s always worth checking to see if there are any restrictions on sheds before making your purchase.

However, if you’re planning on selling your home in the near future, it’s important to keep in mind that not all buyers will see the value in a shed. In fact, some may even see it as a negative, since they’ll have to pay to have it removed or dismantled if they don’t want it.

How much does a shed add to home value

There’s no definitive answer to this question since the value a shed adds to a home can vary greatly depending on a number of factors, including the quality of the shed, its size, and its location.

However, in general, a shed can add significant value to a home, particularly if it’s well-built and located in a convenient spot.

If you invest a few thousand on a high-end shed, with correct permits and structural design it can add 2 or 3 times the value of the shed to the value of your home.

But if you just have a small tool shed, it’s unlikely to add anything significant to the value of your home.

If you’re thinking about adding a shed to your property, it’s definitely worth doing some research to find out how much value it could potentially add to your home.

Is a shed a good investment

A shed can be a great investment, providing you with extra storage space and a place to work on projects.

If you’re considering buying a shed, make sure to do your research to ensure that you’re getting a quality product.

Also, consider the placement of your shed carefully. It’s important to have enough space around it for easy access and to

make sure it’s in a location that won’t be adversely affected by weather or other factors. With a little planning, a shed can be a great addition to your property.

How do outbuildings affect property value

Outbuildings, such as sheds, can affect property value in several ways. First, they can add to the overall square footage of a home, which can be a positive factor when appraising a home.

Additionally, outbuildings can provide extra storage space or even an extra room, which may make a home more attractive to potential buyers.

big barn shed

However, it’s important to keep in mind that not all buyers will see the value in an outbuilding, and some may even view it as a negative. If you’re considering selling your home in the near future, be sure to factor this into your decision.

What can I add to my property to increase its value

There are a number of things you can do to increase the value of your property. Some things include:

  1. A deck or patio
  2. A pool
  3. Landscaping
  4. Solar panels
  5. A new roof
  6. Updated windows or siding
  7. A home theater or bar
  8. New cabinets or appliances
  9. Hardwood floors or a new coat of paint
  10. A shed or greenhouse

Shed building costs

Of course, if you are looking to try and get the most value out of your home, the cost of building the shed will be a factor. Sheds come in a wide range of styles and materials, and whether or not you use a kit will also affect the cost.

cost

Pre-fabricated sheds

A prefabricated shed is one that is already built, and you simply assemble the pieces on your property. They usually do not require a cement foundation prior to constructing them. These can be very convenient and come in a variety of materials for you to choose from.

Metal pre-fabricated sheds can cost as low as $300.

Wood sheds tend to start at around $600,

Vinyl sheds are the most expensive and usually cost $800 at minimum. The price varies widely depending on the size and style of shed you choose.

Custom sheds

A custom shed is one that is built especially for your property. These usually require you to put in the labor, or you will need to hire a contractor. These will more than likely add the most value to your home.

If you do it yourself, keep in mind it will take a few days (and you’ll probably need a hand) and it will cost you between $2000-$5000. If you hire a contractor, they will generally charge you around $100 an hour. It is estimated that the average custom shed costs about $3,000. Depending on your plans for the shed, custom sheds oftentimes require that you pour a cement foundation.

Deciding which shed Is for you

You may see the above prices and be thinking about just buying a pre-fabricated metal shed because it is the cheapest. However, if you do this you probably will not add maximum value to your home.

Regulations

Before picking a shed, look into the regulations in your area. In some neighborhoods and counties, there are rules you must follow when it comes to sheds. And know that if you order a pre-fabricated shed, it may not add any value to your property as you may be required to take it with you when you sell the property. Also look into the tax laws for your county, as certain types of sheds may require additional property taxes to be paid. And if this is the case, the shed may not be worth it for you.

Size/Style

When selecting a shed, you want to find one that is large enough for all of your items, as well as matches the aesthetic of your home. For example, if your home is built of wood, it is probably better to invest in a wooden shed as it will look more like it belongs on the property. And if you live in a neighborhood that is known for its modern-style homes, a barn-styled shed would probably not fit in. It is also important to consider where you will put the shed, and how much room it will take up in that location.

Custom or pre-fabricated

This is where building a custom shed can be better, even though it costs more. This is because, when you build a custom shed, you can build it to your exact specifications as well as have it built to match the exact colors and style of your home. Custom sheds are often considered more permanent structures and are often not required to be removed when you sell the property.

Pre-fabricated sheds are cheaper, and if you need approval for housing additions in your area, or have a strict HOA, this makes it difficult to create a custom shed. In this situation, you may find it easier just to purchase a small pre-fabricated one if you are only planning to use the shed to store a few boxes anyways.

Uses for your shed

Another factor that influences the amount of value your home can increase by is how you are going to use your shed.

Storage

Many people use their sheds for tool and stuff storage. And if this is what you are planning to do with your shed, that’s perfectly fine. Just know that these sheds add the least amount of value to your property. So if you are building your shed just for storage, maybe select a cheaper shed since your value won’t increase much anyways.

storage shed

An extra space

Is your shed going to be a man cave or craft room? These types of sheds do tend to add value to a home, depending on how they are outfitted. If they are attached to the home and truly function as an extra room, this will increase the square footage of your house which will directly impact the cost (and taxes you have to pay). But if your man cave is a detached building in the back corner of the yard, it may not add as much value to the property. These types of sheds add the most value when they are custom built to match the home.

Additional bedrooms

It’s quite common for people to build a shed in the backyard which has an attached bathroom so they can rent out the room, or offer it as a place to stay for aging parents. And this is the best type of shed to build if you are looking to increase your home value. These sheds are the most expensive to build, as they will likely have to be custom-built. But if you put the time into creating the shed to match the house, this type of shed can raise your home value by $15,000, maybe more depending on how it is outfitted. This type of shed though is almost always considered an addition to the house and they will add to the cost of your taxes.

The downsides of having a shed

You may be reading this article, all ready to get started on building your new shed. But be aware, that a shed on the property may not be a happy feature for everyone. You may not realize it, but there are some downsides to having a shed.

Increased taxes

As mentioned above, the type of shed you build could increase the taxes you owe on your property. And if someone is looking to buy your home, they have to take the property taxes into account. If their budget is slim, and the property taxes are high in your area, the property taxes on the shed could make the difference between them buying your home or a different property.

Liability

Some people see having a shed on their property as a liability. If they have kids, they could worry that the kids will play in or around the shed and get hurt. If the shed needs lots of maintenance and upkeep, they may not want to have to worry about it. This is especially true if you select a shed type that requires lots of costly upkeep.

They don’t like your shed

Even if a buyer doesn’t mind having a shed on the property, they may not want your particular shed. This is why it is important to consider the look and size of your shed through the eyes of someone else before you make the investment. Will someone else like your shed? Or is it something that will only benefit you? Thinking about these things before purchasing your shed can help you make the right decision so that you are less likely to lose a prospective buyer over your shed.

Other homes In the area are shed-less

If having a shed isn’t something that is typically desired in your area (as in, you have the only shed on the block) this could make your house stand out as odd to a prospective buyer. It also could make your house less aesthetically pleasing when compare next to other homes in the area.

Maximizing your shed value

You’ve decided that no matter what, you need to build a shed. If you are worried about getting the most value for your shed, there are a few things you can do to ensure your investment pays off.

Permits

Acquiring the proper permit for your building is essential. And do this before you begin construction. This way the shed will be completely legal and not a liability for someone else. This is especially critical if you are using your shed for something beyond storage or you think you may be pouring a foundation of some sort.

Matching

As previously mentioned, matching the shed to the style of your home is absolutely necessary to getting the most out of your investment. So even though the cheap, pre-fabricated sheds may be tempting, it really is best for you to spend the extra money to build a custom shed.

Keep up the shed

No matter what shed you decide on, it is crucial that you keep up with it. Sheds that are damaged or unstable are one of the number one reasons people don’t want to have a shed on their property. If you are getting ready to sell your home and you have an old shed that is in disrepair, it is probably worthwhile to have it fixed up before you start hosting showings.

Use good materials

When you build your shed, you need to use sturdy and long-lasting materials. Not only that but you need to take where you live into account. If you live somewhere which is susceptible to lots of rain or terminates, then a wooden shed probably isn’t the best idea. Go instead for a shed made out of vinyl or metal as these will withstand the weather a bit better.

Consider your home

When you embark on building a shed, make sure its uses and location compliments your home. For example, if the property only has a small one-car garage, a nice-looking shed near the garage could be helpful for additional storage, or if it’s big enough, as a second garage. Or if your house is particularly small, but has a large lot, a detached guest house may make a great addition. Remember that sheds are valued not only for their size but also on their use, which is why it is important to take the layout of your home into consideration—so that your shed won’t be labeled as useless.

Consider your neighborhood

It isn’t a good thing if your home has the only shed in the neighborhood. So before you build, take time to ask around and see if anyone else in your area has a shed. And if they do, find out what type. It can be really helpful for all of your home values if everyone in the neighborhood has a similar shed. And if you live in a neighborhood with an HOA, they may even have a list of approved sheds or shed builders to choose from which can make this even easier.

Attach your shed

Sheds that are attached to the house generally have fewer people as opposed to them. That is, as long as they are well built and match the house. Attached sheds can help improve insulation, are more likely to have power (or it can easily be added), and are usually more likely to be used. Thus, attached sheds are much more likely to be seen as a positive aspect of the property rather than a negative one.

Versatility

One of the best ways to maximize the value of your shed is by building a shed that can be versatile. This way, even if a buyer can’t envision themselves using your shed as a craft room, they can make a few small changes and have a music studio instead. When you are building your shed, try to consider alternative uses for the space and create it to be able to embody that use as well.

Stage the shed

If you are already to the point where are you selling your home with the shed, make sure you set it up for the showing. If you’ve made it this far, you’ve likely already spoken to a realtor or appraiser, and if they gave you suggestions for staging your shed, follow those. If they didn’t provide any ideas, then just some general cleaning and organizing can work wonders.

Conclusion

So, does a shed Increase home value? Overall, if you are looking to add some quick value to your home, building a shed probably isn’t the way to go. But if you are in need of a shed, building one can add to your home value.

Just make sure that as you are selecting your shed that you take your location and materials into consideration and not just the cost.

Also, make sure you use forward-thinking when deciding where to put and how to use your shed. If you know your area well and design a truly versatile shed space, it is highly likely that installing a shed will pay off in the long run as it will add thousands of dollars in value to your home.

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