• Jeremy Horning

Does A Shed Add Value To A Home and How To Calculate Yours?

Updated: Jul 12


In short, yes, a shed does add value to a home. The best thing about sheds is that they're versatile, and if you intend to add value to your home using a shed, then, by all means, go ahead.

How can a shed increase home value? You need to choose the right shed that'll accentuate your home aesthetics.

Many homeowners install sheds for extra storage space; however, a shed offers more than just that. Other people install one intending to increase their home's real value. Regardless of your reason, as long as it's a quality shed and has a good foundation, it'll boost your property value.

So, how much value does a shed add to a home? Let's find out.


Is Having A Shed A Good Investment?

Is Having A Shed A Good Investment?

Aside from the beautiful overall aesthetics that sheds give to a home, it provides extra space for you and makes your home attractive to real estate agents for those who intend to sell to future interested buyers.

Furthermore, a quality-built shed can be used as a living space. When maintained properly, a good-looking shed adds a higher value to your home.


How Much Does It Cost To Build A Shed?

Just like smaller houses, the national average cost of building a shed range from $2,000 to $10,000. However, you can build a small one for just $400, and the cost of a large shed with high-quality construction materials can cost around $30,000.

The cost of building or buying a shed is dependent on the look you want to achieve, how designed you want it to be, and of course, the purposes it'll serve. All these factors need to be considered before planning.

Remember that you'll save more money by purchasing a prefab kit than paying a professional to build your shed but it will probably take you much more time and energy. Other factors that'll affect the cost of building a shed include:

  • Type of building materials - wood, vinyl, or brick

  • Labour cost

  • Land preparation

  • Shed size

Steps To Ensure Your Shed Increases Your Home Value

Steps To Ensure Your Shed Increases Your Home Value

For sheds to add more value to your home, you need to take specific steps to ensure it'll also increase your home's marketability to potential buyers.


Get a building permit for the shed


The funny thing about building a shed without the proper permits in a state that requires them is that its value won't be reflected in the worth of your house by the appraiser. Regardless of how beautiful and innovative a shed looks, if it has no building permit, it can be destroyed anytime by the state authorities.

So, before building a structure, check all shed building permits and regulations are adhered to because it's a deal-breaker for many buyers who might want to purchase your property.

A shed built without following the laws brings no added value to a home. Do your due diligence, and check to see if you need a building permit before investing in a shed project.


Keep your shed in good condition


Sheds don't skyrocket the value of homes but a bad-looking shed is a difference between making a sale and being ignored by potential homebuyers. No potential buyer will go for a building with a shed that looks like an afterthought.


If you want your shed to make a big difference and add value to your home, make sure it's not in poor condition and properly maintained.


You can even go as far as using holiday decorations to make them attractive to most people. Keeping your shed in good condition is an added bonus. For instance, during the inspection process, if a buyer sees there are things to be repaired in the shed, it could cause the purchase price to reduce. A well-maintained shed is a valuable addition to any property.


Ensure the aesthetics match

Ensure the aesthetics match

How your shed looks will impact the overall value of your home. Sheds painted with funny-looking colours are big turn-offs for homebuyers who love style and beauty.


Ensure that your shed colour is attractive and doesn't contrast with the colour of its surroundings. If you intend to build a swimming pool close to it, be sure that the colours blend.


The plan should be to decide on colours that will blend your shed's aesthetics with its surroundings and the house to increase the property's value.


Keep the shed exterior new and modern


Typically, potential homebuyers won't want to purchase a home with a shabby-looking shed. Regardless of where you situate it, whether in the backyard or in an open space for the whole neighbourhood to see, you need to make sure it looks as good as possible.


The trick to having a valuable shed isn't just in the maintenance but in the functionality and physical features. Most buyers will judge your shed by its look, so you need to maintain it if you intend to sell later.


Do you have a dilapidated shed on your property? The best option is to carry out a proper renovation to increase its appeal.


Build the shed upon a strong foundation


Durability must be a consideration before you invest in a shed to utilize it to the maximum.

Building your shed on a strong foundation means it'll be included in any property appraisal. Without a strong foundation, it'll be counted as an accessory.


Use high-quality building materials

Use high-quality building materials

As a homeowner who wants to add a shed to their property, you need to be sure that you are buying only the best materials. Using cheap materials from your local store to save money won't convince any buyer to buy your home. One thing about quality is that it enhances the look of a shed, and potential buyers will be more impressed that it has been in place for years.


Build your shed with enough space


When building your shed, add a bit more space than what you have a mind. Your shed's purpose to you might be different for other owners, and you need the square footage to be not too big and not too small. In general, bigger sheds increase your return on investment.


What Types of Sheds Are Most Likely to Increase a Home's Value?


Different types of sheds can add value to your home, and we'll discuss them below.

The type of shed will either increase your home value or depreciate it when appraised.


Three types of sheds are common among homeowners: a traditional shed for storing gardening tools and equipment, a she-shed recreational building, and sheds that expand living space.

You can also use your garden shed to store valuable items that you don't need all the time.


Storage Sheds

Storage Shed

If storage sheds provide extra living space, big enough to be tagged as a new home, they can add up to $15,000 to your property's value. Big sheds can add extra room for an in-law suite and make the perfect place for your aging parents. If the appraiser deems your shed livable, then without a doubt, it can increase the value of your home.


Home Garden Shed


Home garden sheds are also seen as storage sheds because they provide your house with extra outdoor space, which can be attractive to many home buyers.

A garden shed doesn't just provide storage space, but it also helps with the exterior design of properties. One of the benefits of having one is that it can easily complement and match the overall aesthetic of your backyard.


Personal Workshop or Office


Outbuildings, especially storage sheds, are generally perfect for creating extra rooms and space. When your shed is customized as a workshop or office, you have the advantage of attracting more potential buyers and even selling at a higher price.


She-Sheds


She-sheds might serve their purpose as your escape room, but someone else might prefer a place for storing garden tools and a lawnmower.

Building a she-shed on your property is tricky. Yes, a shed will increase your property value, but a she-shed is specific and selective. However, if you truly want one, be sure to design it so that it can easily be converted into something useful for the next owner.


Man Cave

Man Cave

Man caves follow the same rule as she sheds. A shed will increase the value of a home-based on preference, and if that's not what your potential buyer is looking for, it'll affect the value of your home. You can convert a man cave into an extra living space for your family. Also, it can be used for different purposes depending on its size and equipment.


Small Garage


Homes with no garages can use big sheds to create the needed space to store tools, gardening equipment, and other yard equipment usually kept in a garage. You can also make it big enough to park your cars and store other heavy stuff you may have.


Do All Sheds Increase Home Value?


The truth is, not all sheds will add value to properties. Generally, it depends on the specific situation. Overall, a well-designed shed with regular upkeep and maintenance will positively affect your home's value.

If your shed is big enough and its aesthetics complement the backyard and house, then expect it to increase the value of your property.


Is it possible for a shed to decrease the value of your home?


Of course, rather than contributing value, a shed can detract from the value of your house when not correctly maintained.


You do not expect a buyer to pay for a property with a sinking shed at the same value as they would for a perfectly maintained shed.


Conclusion


To further clarify the question, "Does a shed increase home value?" The answer is yes. Your property value can be positively affected by a shed on your property. So, if you decide to build a shed because of its value, consider the things listed above before investing time and money. Plus, contact your state authorities to be sure it's allowed.


Frequently Asked Questions


How much value does a new shed add to your home?


Aside from giving you extra storage space, sheds add value to your house. According to expert appraisers, a spacious new shed can add about $18,000 to your property's value. But keep in mind that sheds are valued based on their functionality and style.


Does a shed increase property tax?


Sheds are structural, so they affect property taxes; however, not by much. But, if your shed has a high property value on the market, it'll definitely result in higher taxes. You can contact your state authorities to learn how sheds can impact your taxes.


Is a shed considered an asset or a liability?


The condition and style of your shed will determine the answer to this question. It'll be an error to be careless about how your shed looks in a world filled with individuals who love aesthetically pleasing structures. Like a house, when sheds are well-maintained, they are valuable assets, and vice versa.

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