A shed is one of those structures that can be used for just about anything you can think of. They can be used for storage, of course, but they can be turned into an art studio, a home office, or just a place to relax. As versatile as they may be, do they add value to your home when selling the house?
The short answer? Yes and no.
Let us explain.
Does an updated shed increase home value?
Kevin Murray, a veteran home appraiser with 35 years of experience, says that sheds don’t typically add value to most homes since they are considered personal property and can be removed when the homeowner leaves.
An updated shed could add value, particularly if the house is less than 1,500 square feet. That value only equates to about 1 or 2% of the property’s overall value. Sadly, sheds are relatively affordable (you can find sheds for less than $2,000); if someone wanted a shed, they could easily get one on their own.
In some situations, the shed having a permanent foundation can be considered taxable square footage, which could raise property taxes.
How to update a shed to add value?
Although a shed may not add monetary value to your property, you can do some things to ensure that it does add value or boosts the property’s marketability.
1. Have a building permit
A building permit is a must if you want to be sure that the home appraiser includes the structure when appraising the property. If you don’t have a building permit, that shed is now a liability.
2. Match the shed to the style of your home
There are a lot of unique shed styles to choose from, but it’s strongly recommended that you choose a shed that matches the house. You don’t want to have a Japanese-style shed if your home is Victorian.
3. Keep the shed in great condition
A shed falling apart or showing signs of neglect will not add any value. It could deter potential buyers or, worse yet, a complete deal breaker. You’ll want to make sure the shed is in good condition and if it’s beyond repair, it may be a better idea to remove it entirely.
4. Choose a shed that uses the most desirable materials
A prefabricated shed isn’t going to garner much value, especially if it’s made of a material that isn’t popular in the area. For example, if your property is in an area that experiences a lot of adverse weather, wood may not be the best choice; PVC is the better option. You’ll want to consult your real estate agent to find out what is most popular in your local market.
5. Stage the shed for home showings
If you use your shed as a marketing tool, stage it properly. For example, if your shed has been updated to be a livable space rather than just storage, stage it that way. You can show it as a personal home office, outdoor gym, or a place to unwind.
Of course, if the shed is just storage, take the time to clean up and organize the shelves. The better the shed looks, the buyers will view it as an asset, not a hindrance.