Does a shed or garage increase home value?

Resale considerations when investing in a shed or prefab garage

Does a shed increase home value? How much does a garage add to the house price? Often, when homeowners erect these structures, they’re thinking beyond convenience and considering how a shed or prefab garage may impact potential resale. Indeed, there are many variables to consider when assessing the potential ROI on a shed or prefab garage, not the least of which is where you live. So, while it may be difficult for us to pin down exact numbers, we can nevertheless explore certain things worth considering when investing in a shed or prefab garage.

Does a shed increase property value?

A quick Google search will yield some conflicting results. On the “no” end of the spectrum, some argue that because the addition of a shed rarely impacts property taxes, the structure doesn’t significantly drive up the value of a home. And while this statement is technically true, it only tells part of the story.

When asking, “does a shed increase property value?” it’s always best to think in terms of marketability and curb appeal. Flip the question: does a lack of a shed reduce the desirability of my home? Or does an old, dilapidated shed negatively affect how potential buyers perceive my property? Additionally, consider that on the whole, outdoor renovations yield a higher ROI than indoor renovations.

Is a shed worth the investment?

The short answer, yes — the inclusion of a functional shed (one that meshes beautifully with your surroundings!) adds value and, when done right, is certainly worth the investment. Of course, not all sheds are created equal, so here are a few points to consider when making a selection:

• Select a high-quality shed that conforms with your surrounding property: Remember, a poorly designed shed, cookie-cutter structure, or design that aesthetically clashes with your yard can negatively impact your home’s marketability.
• Consider the shed’s location: Convenience and accessibility are crucial factors in assessing a shed’s curb appeal.
• Know if you need a permit: Different municipalities have different bylaws, so consult with your city’s website before investing in a garden shed. Having an unpermitted shed can not only negate added value but also potentially drive value down.
• Consider the shed’s function: Do you plan on adding electrical? Plumbing? A shed can serve as much more than a storage space. While not a feasible option for every homeowner, installing a shed that may one day function as a guest room or man cave will yield the highest possible ROI.

Does a garage add value to a home?

Undoubtedly, a garage is a valuable asset for homebuyers. In fact, a two-car garage is among the top 10 assets Canadian homebuyers look for, according to a recent survey. Again, how much value it adds to your home depends on several factors. Specifically, you need to account for what’s common in your area. Consider the following:

• Are you the only property on your street without a garage?
• Is the new garage proportional to the size of your home?
• How does the addition of a freestanding garage affect the aesthetics of your property?

How much does a garage add to a house price?

When assessing how much value a garage brings to your property, you must consider whether you’re opting for an attached garage or detached garage:

How much does an attached garage add to home value?

An attached double-car garage is undoubtedly the costliest investment, but it does exhibit a greater return on investment (approx. 80% as a national average). Additionally, an attached garage is considered a part of your primary dwelling and therefore contributes to your home’s square footage. Also worth considering is that an attached garage simplifies plumbing and electrical.

How much does a detached garage add to home value?

By contrast, a detached double-car garage has an ROI closer to 65%. This lower ROI is largely due to the fact that a detached garage is on average 10-15% more costly than an attached garage. With that said, opting for a high-quality prefab garage can notably reduce costs and, in turn, bolster ROI.

Moreover, much depends on what the garage can be used for. For instance, some homeowners choose to incorporate second-story living quarters in their freestanding garage, which significantly boosts property value (in these cases, you’re looking at something much closer to a 100% ROI).

Talk to an expert

So, does a garage add value to a home? In most cases—yes. But to properly gauge your ROI, it’s always advisable to speak with a realtor in your neighbourhood. Additionally, our experts are here to discuss the benefits and savings you’ll find with a prefab garage, as well as financing options. Give us a call today!