Does a Shed Add Value to Your Home? | Esh's Utility Buildings (2024)

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?


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!

Does a Shed Add Value to Your Home? | Esh's Utility Buildings (2024)


Does a Shed Add Value to Your Home? | Esh's Utility Buildings? ›

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.

Does adding a shed increase home value? ›

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 turning a shed into a house a good idea? ›

Yes! While shed homes are not the option for everyone, they offer incredible benefits. If your local government allows legal shed homes, then this housing option will give you financial freedom by eliminating a 30-40 year mortgage. Plus, converting a shed into a home is much faster than having a large home built.

Is a shed a good investment? ›

You can even use it as a workshop for your hobbies. A shed also adds to the overall design of your house. It can increase your home's resale value by 5 percent, according to experts. So, if you are planning to sell your property anytime soon, consider adding a shed first.

How much to convert a shed to a house? ›

Considering all the factors mentioned above, it's no secret that the costs of converting a shed into a house may vary. However, the average is around $75 per square foot.

How much does it cost to build a 16x40 shed? ›

16×40 shed prices range from $20,006 to $37,529 and above, depending on building design, style, siding, add-ons, and more.

What adds value to a house? ›

10 quicker wins for adding value before selling
  • Redecorate. ...
  • Fix superficial defects. ...
  • The front door. ...
  • Declutter. ...
  • Heating and lighting. ...
  • Garden appeal. ...
  • Create a driveway / off-road parking. ...
  • Look smart and be energy efficient.

What adds the most property value to your home? ›

5 Home Improvements That Can Increase Your Property Value
  • HVAC Cooling and Heating Systems.
  • Garage Door Replacement.
  • Exterior Stone Veneer or New Vinyl Siding.
  • New Entry Door.
  • Minor Kitchen Remodel (Midrange)
  • Home Improvements That Don't Recoup Their Full Cost.
Mar 4, 2024

Is adding a shed tax deductible? ›

Are shed taxes deductible? An outdoor structure such as a shed can be a deductible business expense. It is possible to take a write-off for an independent shed structure on your property that you use exclusively and regularly for business. The deduction will include any expenses connected to the shed structure.

Is it cheaper to build a tiny home or convert a shed? ›

Sheds aren't always the cheaper route

You'll have to factor in additional expenses such as concrete foundation work, permit fees, and professional services from architects or engineers. And the interior build-out adds up with insulation, drywall, plumbing, electrical wiring, and furnishings.

What is a good size shed? ›

Generally speaking, a 12' x 12' shed size will greatly suit a large yard, while 8' x 10' shed dimensions might be a better fit for a medium-sized yard.

Is it worth it to build a shed or buy one? ›

Key Takeaways: Convenience vs. Customization: Buying a shed offers convenience, professional quality, and time savings, whereas building one provides full customization and potential cost savings.

How much equity does a shed add? ›

Monetary Value

A backyard shed does more than just offer extra space; it has the potential to substantially increase your property's value. Industry experts claim that a quality shed can elevate your home's market value by 1-2%.

Do sheds affect appraisal? ›

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.

What is the life expectancy of a shed? ›

It's difficult to give an exact time for the expected lifespan for sheds because many factors can affect it. However, in general terms, expect the following, for the most common types of shed materials: Wooden sheds such as those used for wood storage: 20-25 yrs. Vinyl sheds: 25-30+ yrs.

What is the cost to build a 12x12 shed? ›

A DIY shed usually costs between $20 and $175 per square foot. So a 12×12 shed could cost anywhere from $2,000 to $25,000. The price depends on what material you decide to use for the shed. A wooden shed will keep costs down but require more maintenance in the long run than vinyl siding.

Can you turn a shed into a livable home? ›

Convert your shed into a liveable space by insulating it, adding plumbing, wiring electricity, putting up drywall, painting, and adding fixtures like lighting, flooring, appliances, cabinets, etc., until you're satisfied with your results.

How much does it cost to put a bathroom in a shed? ›

Therefore, you should consider installing a bathroom and a kitchen in your shed home. The water lines alone can cost you at least $1,000. Then you must consider the price of building a bathroom and a kitchen. Building a bathroom can run you $2,500 to $20,000+, and a kitchen can cost $5,000+.

What is the cheapest shed to build? ›

If you want to build a budget-friendly shed, opting for a classic wooden structure will be the most affordable option, along with styrene glazed windows, with roofing felt and panels. If you maintain it yearly and take good care of it, a cost-effective shed can be extremely long-lasting and durable.

What is the actual cost to build a shed? ›

A shed is an investment that gives you many benefits ranging from offering a cozy bit of privacy to providing extra storage. A shed costs from $200 to $30,000 to build. The final cost depends on the style, type, and material you want to use. The national average cost to build a shed is around $2,500.

How do I insulate my shed? ›

The best way to insulate a shed is to use a high-quality insulating board, such as Rockwall, Recticel Instafit insulation boards, or Knauf insulation wall cavity slabs. These products are lightweight, easy to cut and handle, and easy to install.

What increases home value the most? ›

8 ways to increase the value of your home
  1. Clean and declutter. ...
  2. Add usable square footage. ...
  3. Make your home more energy-efficient. ...
  4. Spruce it up with fresh paint. ...
  5. Work on your curb appeal. ...
  6. Upgrade your exterior doors. ...
  7. Update your kitchen. ...
  8. Stage your home.
Jun 6, 2024

What holds value in a house? ›

Location. Location also plays a big role in home resale value. Some factors that impact the location include proximity to shopping and entertainment, distance and accessibility of public transit, parking availability, local school district ratings, and crime rates.

Do backyard improvements increase home value? ›

A beautifully designed and well-maintained backyard can significantly boost the value of your home while providing a space for relaxation, entertainment, and enjoyment.

Is it cost effective to build a shed? ›

If you've been wondering if is it cheaper to build your own shed, you'll discover that yes, it is less expensive to build your own shed than to purchase a pre-built shed. That is at least if you have all the tools required to build the shed. Typically, it won't take many specialty tools to build the shed.

Is a shed a building for depreciation? ›

A shed, when used for a business purpose, can be depreciated according to the Internal Revenue Service (IRS) guidelines. If the shed is only used for personal uses, depreciation can be taken for your personal accounting records, but will not be tax-deductible.

Does storage add value to a home? ›

Does Storage Add Equity to Your Home? The answer is YES! And not only does it add value, but it can also help you sell your home faster if you ever decide to go on the market. Studies have shown that homes with extra storage space tend to sell for more than houses without optimized storage.

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