Does a Shed Add Value to a Home?

If you’re lacking in storage space, there’s no doubt that a shed can be an invaluable addition to your property. As well as the obvious practical benefits, a lot of people also ask the question: does a shed add value to a home?

As a shed enthusiast, I was keen to find out whether my pride and joy will also make my home any more valuable.

In this article, I’m going to answer some of the questions around whether a shed adds financial value to your home.

Why Build a New Shed?

One of the big advantages of building a new shed is the extra storage space it brings.

This is one of the key things that buyers look for in a new home, and a shed is an underrated way to offer more storage space.

Older homes are often lacking inadequate storage space. A shed can be an added bonus that convinces buyers to commit themselves when they may otherwise not do.

Having a shed can free up valuable space in a garage and is an even bigger bonus if there isn’t a garage at all. It’s common for sheds to house bulky equipment such as a lawnmower, so the garage has room for storing a car, for example.

A shed can also be good for gardeners and a useful place to store equipment and do activities such as potting.

You can also use a shed as an outside dining area or home office. Both of these can also appeal to the right type of buyer.

If your shed offers something buyers wouldn’t otherwise get from your home, it can be a big selling point.

Check If You Need a Permit

A shed can also be good for gardeners and a useful place to store equipment and do activities such as potting.

Needing a permit is more likely if you have electricity and water inside. You may also need a permit if you plan to use the shed as a home office.

In the US, the limits on shed size tend to vary from area to area. Check with your local building department and the Homeowners Association (HOA) if applicable.

Another thing to consider is whether there are any rules on building sheds in your areas. You may need to build a shed in a certain way to meet the regulations, especially foundations.

In Canada, you generally don’t need a permit for a shed that isn’t too large. There may still be local restrictions though so it’s worth checking in your municipality.

In the UK, you don’t need planning permission for less than 160 sq. ft. and no sleeping facilities. Up to 320 sq. ft. is often also okay if the shed isn’t less than a meter from a boundary.

Can a Shed Add Value to Your Home?

What you use the shed for and how well maintained it is can make a lot of difference to the value it might add.

A well-kept shed with an obvious purpose (a storage building, for example) can tempt a buyer who needs this space.

A good-looking shed can add value in the eyes of a buyer and give an edge over similar properties that don’t have a shed. A shed that matches your house and blends in with its style definitely ticks this box.

If it has electricity, a water supply, and insulation, it can add even more value for potential buyers. This makes it a readymade space for an office, for example.

How a Shed Can Decrease Value

Just as a shed can add value in the eyes of a prospective buyer, it can make it less attractive.

A shed that looks run down can lower the tone and take value away. Having more than one shed if one or both of them don’t seem to serve a great purpose.

Both scenarios can lead potential buyers to see the shed(s) as a negative aspect of the property. If they find a similar home that doesn’t have an ugly shed, you run the risk that they will go with that and pass on yours.

Having an ugly looking shed in poor condition can be a worse option than not having a shed at all. This is because it can ruin the overall aesthetics of your property.

Shed Costs versus Potential Return on Your Investment

One thing to bear in mind when building a new shed: it’s unlikely you’ll get the full costs back when selling your home.

What it can do though is make buyers more likely to pay a bit more than they might have done if the shed didn’t exist. A home is only worth what someone will pay for it, and the right kind of shed can make it worth that little bit more.

Does a Shed Increase Property Tax?

Structural changes to your property can increase the tax. If your shed is deemed to have improved your property’s value, it’s likely to lead to a higher tax bill too. It can result in your property being reassessed for its value.

A shed can add some extra value to your home in the eyes of potential buyers, not least because of the extra storage space it can offer. Be aware that it can also increase property tax too. You may need a permit too, depending on where you live and what the local restrictions are there.

Got any questions I’ve not answered here? Let me know in the comments and I’ll do my best to help!

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