Storage sheds have so many benefits! Are you wondering if one of those might be adding value to your home? Read on to find out!
Many homeowners need help finding enough room to hold their stuff. From patio furniture to decorative lawn ornaments, there just simply isn’t enough room. Adding a storage shed to your property can certainly create more usable space, but will you get any return on your investment with increased home values?
As a general rule, adding a storage shed can add value to your home. Constructing a storage shed with a clear and defined purpose, designed with high-quality and durable materials, will help you get the most return on your investment.
Of course, not all storage sheds are created equally, and there are some exceptions to the rule when adding an outbuilding to your property. Understanding the right style, purpose, and materials for your storage shed can help you get the most return on your initial investment.
Is a Storage Shed a Good Investment?
For most homeowners, adding a storage shed is a good investment. A shed can give you much-needed additional square footage, perfect for storing seasonal items, tools, equipment, or decorations. But does storage increase home value? It turns out that choosing the right storage sheds to build can ultimately impact your overall property value and investment. Be sure to carefully consider the materials and purpose of your new storage shed.
Materials For Your Shed
Pick durable and long-lasting materials with minimal maintenance requirements to get the most out of your shed. Storage sheds built with composite materials or strong metal tend to hold their value longer than traditional materials like wood. Although beautiful, wood is an expensive and time-consuming material to maintain for the long haul.
Materials that are designed to be low maintenance are also more desirable. With less time spent staining, painting, or power washing storage sheds, you’ll have more time to do the activities you love.
Planning the Purpose for Your Shed
Having a shed or outbuilding in your backyard is great if you know how to use it. Before constructing a new storage shed, consider how you’ll use the space. To increase the value of your home, you’ll want to have a clear and defined purpose for your structure.
Some popular storage shed ideas include a simple storage shed with shelving and overhead space, a garden shed with room for potting and planting, or a barn perfect for storing large equipment and tools.
Or, consider finishing the shed interior to create more livable space. Turning a traditional storage shed into a hobby room, small garage, man cave, she shed recreational building, or even a mother-in-law suite can add some real value to your property by giving you extra living space. A finished shed with insulation, HVAC, and plumbing can significantly boost your available living space and overall property value.
Benefits of a Shed
Home improvements that drive your property value up create a better or more convenient lifestyle for potential buyers. Adding a storage shed to your backyard comes with several enticing benefits. With a shed, you can:
- Organize – Find a home for your patio furniture, decorations, lawn equipment, and gardening tools. When you can store your belongings in a shed for the different seasons, your property looks less cluttered.
- Storage – Having a storage shed helps increase your extra storage space. More storage space means you can use your deck, patio, or porch for additional living space as intended. Plus, storing patio furniture indoors through inclement weather helps it last longer.
- Versatile – A storage shed can be used to house your equipment and garden tools, or it can be used as a hobby room, man cave, or additional bedroom. When you have a shed already on your property, it’s easy to modify as your needs change. Adding extra living space is easy when the shed is already in place.
Do Outbuildings Increase Property Value?
Outbuildings come in many shapes and sizes, ranging from a simple shed to a large pole barn that stores industrial farm equipment. Pending that the outbuilding was constructed using quality materials and built with the right permitting, it will usually add significant value to your home.
An outbuilding tends to add value to a home when the purpose of the outbuilding is clear. Having a well maintained storage shed or garden shed that provides plenty of storage will add more value than a dilapidated shed in poor condition with a leaking roof. Outbuildings that are finished, like a mother-in-law suite, can add value and increase the home’s usable square footage.
Keep in mind that some outbuildings, if not properly kept and well maintained, can decrease the value of a home. If a building is falling apart or needs expensive repairs, it can decrease its value. Further, buildings beyond repair can be expensive for people to tear down and replace.
Does a Barn Increase Property Value?
A barn is certainly a type of outbuilding that can add significant value to your property value. Perfect for storing gardening equipment, animals, or supplies, a barn is a large, sturdy, practical building. Pending that your barn is in good condition and functioning, it will undoubtedly increase your property value.
A popular trend is to finish the interior of a barn to make additional space. If your local area allows it, barns can be transformed into venues to host parties, showers, or weddings with the proper permits. Having an additional source of revenue for your property can certainly increase the overall value.
Does a Metal Building add Value to Your Home?
Not all barns are created equally, and the overall quality and material will certainly affect your property value. Older barns that are not in great shape can actually detract from your property value. Large wooden barns can be costly to repair and maintain, making them a potential money pit for would-be property owners.
Alternatively, metal buildings, like a metal pole barn, can significantly increase your property value. Depending on the size and style, adding a pole barn can add as much as $10,000 to your property value. Metal pole barns are easy to build, affordable, and can last for years.
Other Cost Considerations
Remember that adding an outbuilding to your property can increase the overall value, but you might have some additional expenses too. Adding outbuildings could add to your monthly insurance and taxes. While a shed could be a great way to boost your property value, be sure to understand how much it will be to insure your shed.
Does a Shed Increase Property Insurance?
Luckily, most storage sheds and outbuildings are covered by home insurance. Storage sheds, gazebos, decks, fences, and other common outdoor structures will be covered the same way a home is covered from a potential accident.
Most home insurance companies will require more inclusive coverage options to include outbuildings. A more robust insurance plan covering storage sheds could increase your yearly insurance costs.
Does a Shed Increase Property Tax?
An increase in your property taxes really depends on the area where you live. Tax laws surrounding permanent structures on your property vary between states, so it is essential to fully understand your local laws and building permit regulations before building a storage shed.
In most states, adding a permanent structure with a poured concrete foundation, like permanent storage sheds, will increase your property taxes by at least a small amount. While your shed will add value to your property, you may also have to pay increased taxes.
Do Sheds Appreciate in Value?
Generally speaking, the storage shed itself will not appreciate in value from the original purchase price. However, when considering a shed is just a small part of an entire property, it is safe to say a new shed can help the property appreciate over time.
You must maintain your shed to get the most value out of your shed and your property. Keep your shed in working order and give the outbuilding a clear and defined purpose. Storage sheds built with high-quality, long-lasting, low-maintenance materials are more attractive to potential buyers.