Does A Shed Increase Value To A Home? (Find Out Now!)

Ossiana Tepfenhart
by Ossiana Tepfenhart

When I first started writing about home improvement, I talked about the “she-sheer she shed” commercial. Sheds have, since then, become a favorite part of my home improvement repertoire. I started to wonder what the deal with sheds are. Do they actually add value to a home, or is it more of a “meh” type of deal?

As a general rule, storage sheds do not add much value to a home unless they are able to act as a major portion of your house’s storage, a garage, or as extra living space. If you have a shed that is not well-maintained, it can actually take away from your home’s value.

If you’re as shocked as I am about that answer, hold on tight. It’s about to get a lot clearer soon enough.

Do You Need to Hire Shed Installers?

Get free, zero-commitment quotes from pro contractors near you.

Why Don’t Most Sheds Add Value To A Home?

Most sheds are very small and are not well insulated. They also tend to be somewhat redundant in larger homes, since the stuff that they tend to house can be housed in a garage. Moreover, a lot of people just want more yard space, too. As a result, most people don’t find sheds to be a major attraction for a homebuyer.

When Can Sheds Add Value To A Home?

As you can tell from my introduction, a typical shed won’t get you much return on investment. However, there are moments where having a shed can be a serious perk to homebuyers…or even a “make or break” type of deal. Here’s when it actually does pay to get a shed:

  • Your house is unusually small and your shed is insulated. If you have a 1-bedroom, 1-bathroom home or similar, a shed can be a huge boon. Extremely small homes need all the storage they can get. This is doubly true when the shed is insulated, since it means that you will be able to keep things safe, away from rain and extreme temperatures.
  • You do not have a garage and the shed can act as a garage. While I personally haven’t seen a house like this IRL, it’s a thing. If your shed can act as a garage that you don’t have, it could be a huge improvement on your house value.
  • Your shed actually acts like an auxiliary living space. Technically, it stops being a shed at this point, but still, it’s a real thing. Living in a shed that has a cozy bed, insulation, running water and lighting is a lifestyle that’s increasingly popular now that adults are living at home more.
  • The shed in question is less of a shed and more of an auxiliary spa. If you have a shed that can act as a mini-guest house, it will add a significant amount of value to your home. On a similar note, a shed that holds an indoor jacuzzi or sauna is also a major buyer-getter.

How Much Value Can A Shed Add To Your Home?

If you’re in one of these three situations above, you might be surprised to hear that sheds can offer a hefty increase on price. Typical sheds for smaller homes that act as garages or major storage can add up to 1 to 2 percent on your home’s value.

Things get way more different when you are talking about a shed that acts as an auxiliary living space. If you have a luxury shed that acts as a major attraction to your home or as a guest home, expect to see as much as $15,000 to $25,000 added to your home price tag.

When Can Sheds Decrease Property Value?

While sheds are great or at least neutral in most cases, there are moments where having a shed can be a detractor from your home’s value. These include situations below:

  • You don’t have a permit for the shed. If you find out that the shed isn’t up to municipal code or if it’s not supposed to exist, your buyers will have to tear it down. Best case scenario, they may call the municipal office and pay for a permit.
  • The shed in question is in terrible shape. Do you find yourself wondering when a shed is more of a shack than anything else? Are the windows busted out? Does it feel like it’ll collapse next storm? If so, it’ll only be able to be used as firewood. People will know that, and they won’t want to pay for its demolition.
  • The shed is in OK shape, but is an eyesore. True story. A friend of mine had the bright idea of painting their shed black. Pitch black. In a “McMansion” type of neighborhood. This didn’t go over well with the HOA, nor did it work out well with their potential home buyers. Don’t be like my friend.
  • Your shed has no foundation. A portable shed is not necessarily a bad thing, per se. It means you can bring  it to your next home without too much of a problem. However, it’s not the most permanent structure. This may lead to a mild (but still slightly noticeable) drop in home value.

How Much Can A Shed Decrease Your Property Value?

This is still something that has to be determined, as we actually couldn’t find solid statistics on how much a property would decrease with a bad shed. However, it’s generally safe to assume that the amount you’d lose would have to equal the amount you’d have to pay to remove or fix the shed.

For most people’s homes, you should expect your shed removal to cost between $500 to $1500. In some cases, it could be higher if the shed’s placement also caused damage to the grass around your lawn.

Should You Remove Your Shed Before You Sell?

Honestly, this is a matter of personal discretion. If you feel it would be better for the overall property value of your home, then it makes sense to hire someone to demolish the shed. I mean, nothing is better than trying to spiff up your home prior to a sale. If that means removing a shed that’s in tatters, so be it.

Do You Need to Hire Shed Installers?

Get free, zero-commitment quotes from pro contractors near you.

Related Questions

How can you tell if a shed is going to be portable?

There are several ways to determine if you have a shed that’s portable versus a shed that’s stationary. The key difference is whether or not it is hooked into the ground on a solid concrete foundation. If it’s easy to push off the ground or can be lifted with your bare hands, then you probably have a portable shed.Oh, and you also should also be aware that most plastic sheds are meant to be portable. In fact, they are usually made to be light to carry.

Do you actually need to have a permit to install a shed in your backyard?

It all depends on the area that you live in and the local laws therein. In most areas, particularly near major cities, a permit will be required before you can construct any type of structure in your yard. If you are not sure whether you need a permit, it’s best to approach both your town and your local HOA.Thankfully, there is some good news on the horizon. If you want to build a shed, the price for a permit is going to be very reasonable—often less than $200.

How much does a live-in shed cost to install?

This can vary greatly depending on the type of amenities that you want to add. If you want to have a shed that can double as a guest home, the price for all the materials you need will range between $25,000 to $45,000 in most cases. This assumes, of course, that you are not going to add running water to the shed and that any lighting would be minimal. After all, it’s still going to be a shed.

Ossiana Tepfenhart
Ossiana Tepfenhart

Ossiana Tepfenhart is an expert writer, focusing on interior design and general home tips. Writing is her life, and it's what she does best. Her interests include art and real estate investments.

More by Ossiana Tepfenhart