Sheds

[Kate]

Saw a post resently that one of you desided to finish a garden shed for your office so you wouldn't be destracted from the hussle of home.

I am curious mainly because i am thinking of doing the same thing but also because personally I don't adjust for sheds and have noticed from a lot of the MLS comps that a shed isn't even mentioned when I found one on sight.

So I am wondering if you all adjust for sheds and how much. I priced some out today from $1400 to $2500. I know that if I were to finish a shed it would most likely be an overimprovement.

What also interested me in starting this thread was that the sales person for the shed told me that it is not taxed (property tax) because it is just sitting on concrete blocks, no foundation or even a slab.

What do you all think. What are you adjusting for sheds if anything. And what if you found one finished like I'm planning on doing with phone, electricity, heat, insulation. Overimprovement? Personal property, not affixed to the property?

 

[Dave Smith]

In my market sheds, particularly if they are upscale, add some value. I only adjust a modest amount , if at all, for most as it is so hard to prove there is enough value to a shed to warrant an adjustment. In my market the $1,000 shed goes on the tax rolls for $1,000 in assessed value.

If the shed is a 22' by 32' garage or a 24' by 40' pole building, now we have to adjust quite a bit. I call them toy boxes and they are FULL of toys. Along with at leaat one gas can for each specific toy. Boys and their toys!!! If the boys buy houses without toy boxes they immediately build them. Boats, jet skis, mowers, tractors, roto tillers, snow blowers, John Deer Gators, antique cars, you get the idea.

 

[Ken Martin]

I did an appraisal on a house about six months ago, where the lady of the house had a home office located in her former pool house. Glass windows overlooking the pool so she could watch on the children. When she did the conversion, she added a .5 bath and heat pump. It was nicely finished on the inside. Vistors to her office just walked around the pool. I don't recall how I treated it, other than a lump some adjustment. It was located in a very upscale neighborhood here in Virgina Beach, and was very close to the oldest house in the city.

 

[Bill Rose]

Depends on whether it is permanently affixed. If it is included in the tax base, it adds value.

 

[Chris Colston]

In my market, if the "shed" is on a slab foundation with electricty and water, the tax assessor accounts for it as an "out building". That's what I call it, too. If there is no foundation or finish I consider it as personalty and do not give it any value. Some sheds are just over sized dog houses that hold the bar-b-que grill and lawn mower, some are play houses, some are elaborate work shops. It all depends on how easily can it be removed.

 

[Mike Simpson]

I don't typically adjust for a shed, but I'd have to say it depends.

Depends on the size, quality of finished materials, utilities, heating, etc.

Buyer's tend to weigh the total attributes one properties offers vesus others available, rather than on a component basis.

That's to say if you've two identical properties for sale @ the same price in the same neighborhood, and similar in all other respects w/the exception of the shed...the property w/the shed MIGHT be the incentive to purchase that particular property over the other. The potential purchaser, however, may not be willing to pay a measurable amount more to purchase the property w/the shed.

-Mike

 

[Tim The Enchanter]

With median SFR prices well over $300k here, a $1k shed doesn't mean much if anything. Whether it's personal property or no permit, usually no market value here. Value in use may differ, and YMMV. B)