Value of a finished shed?

[talisman]

Hi all,

Austin TX homeowner here. I'm considering building a 200 sqft (the max allowed without permitting) finished shed in the backyard. On a foundation, wooden frame, wood siding (like the main house), drywall, vinyl floors, electric but no plumbing, window AC. It doesn't qualify as a dwelling, but I'm hoping it will have some resale value. How might an appraiser estimate its value?

It should cost around $15k to build. If we want plumbing, we'll have to deal with city permitting. The plumbing + permitting add probably $10k and a lot of time, so we'll probably skip it.

Thanks!

 

[Terrel L. Shields]

$75 a SF???? Geez. I can buy a prefab for $15/SF throw in a 200 SF slab for $5/SF....and I bet most appraisers wouldn't give a 200 SF shed more than a couple thou of contributory value, $5k at most.

 

[jay trotta]

Just a thought here; visit the assessor's office and peek at a few properties that have a shed on the property, take a look at how they are assessed ($$$) - it should give you an idea of how they are viewed. This will provide you some insight as to; Price/Cost may not equal Value.

 

[Tim Hicks (Texas)]

Look at what the return on a $60,000 pool or a $40,000 workshop is in your area. 20-40%? 50% That should give you a gauge on the contributory value of additional improvements in your area. If it not permanently affixed on a slab, an appraiser might consider it personal property with no contributory value. Why do people put in pools or workshops with such a low return on investment? Personal choice, not for the poor investment return. They accept it because they want it.

 

[Joe Flacco]

If the work from home trend sticks then those finished sheds are going to be pretty popular for home office purposes.

 

[Joe Flacco]

From appraisal perspective it is the same as other detached finished space like a finished room over a detached garage or something like that.

 

[Mark K]

It sounds like a detached garage to me and is probably valued at approximately the same amount by the local market.

Its on a foundation but no permit is required? Regional differences I suppose. Around here you can build a shed on skids or runners and set it on blocks but any foundation requires a permit. The assessor includes them in your assessed value but if they are small enough to be moved, I don't include them in the appraisal...personal property IMO.

 

[J Grant]

MOST of the time not possible to show an extraction adjustment for a shed on permanent base with no electric that cost 15k - I do account for it but as part of the upgrades, though there are times if shows in prices then it can get a $5000 adjustment in the appraisal.

Build it for your own use and enjoyment, it will add a positive appeal at the least. An appraisal is an approximation of individual features contribution to the whole - one house might have a shed , another a built in stone barbque , another a tiki hut - etc -each contributes to yard and patio and ends up equivalent so no adjustment made for any of them.

 

[glenn walker]

Hi all,

Austin TX homeowner here. I'm considering building a 200 sqft (the max allowed without permitting) finished shed in the backyard. On a foundation, wooden frame, wood siding (like the main house), drywall, vinyl floors, electric but no plumbing, window AC. It doesn't qualify as a dwelling, but I'm hoping it will have some resale value. How might an appraiser estimate its value?

It should cost around $15k to build. If we want plumbing, we'll have to deal with city permitting. The plumbing + permitting add probably $10k and a lot of time, so we'll probably skip it.

Thanks!

Got to Tuffshed.com- They have ones that ar 200 to 400 Sq.Ft and can be placed on a concrete slab foundation, 1/3 cost of what you are talking about doing .

 

[talisman]

$75 a SF???? Geez. I can buy a prefab for $15/SF throw in a 200 SF slab for $5/SF

Plus insulation, drywall, flooring, electric. I suppose if you're handy you could do it all yourself for much less than $75/sqft. But I'm not handy, and after a lot of searching I can't find anyone who will do it for less. It's a booming business right now, and I'd expect that if it were easy to do it for less, someone would have come in to undercut them.