Article takeaways
- Sheds rarely add real market value: appraisers typically treat them as personal property (removable), so they don’t count toward a home’s official valuation.
- Perceived value can still boost resale: especially for homes under 1,500 sq ft — but the impact is modest, only about 1–2% of overall property value.
- Permits and code compliance are essential: an unpermitted shed can become a liability rather than an asset, and a permanent foundation may increase taxable square footage (and property taxes).
- Style, materials, and condition matter for curb appeal: matching the shed to the home’s architecture, using durable/weather-appropriate materials, and keeping it well-maintained all help buyer perception.
- Staging pays off: presenting the shed as a functional space (office, gym, guest room) rather than just storage makes it read as an asset during showings; if it’s purely for storage needs, a self-storage unit may be the more practical alternative.
A well-maintained storage shed is one of those structures that can be used for extra storage space, especially when you are unpacking after a move, even if you already have a traditional garage. They can be used as an outdoor living space, but they can be turned into an art studio, office space, or a cozy retreat; much like the popular she sheds and man cave concepts that have taken off in recent years. As versatile as they may be, do garden sheds and backyard sheds add property value to your home when selling the house?
The short answer? Yes and no.
Let us explain.
Does an updated shed increase home value?
Kevin Murray, a veteran home appraiser with 35 years of experience, says that storage sheds don’t typically add property value to most homes since they are considered personal property and can be removed when the homeowner leaves, something home inspectors and real estate agents frequently point out.
An updated storage shed could add perceived value and boost resale value, particularly if the house is less than 1,500 square feet. That market value increase only equates to about 1 or 2% of the property’s overall property value. Sadly, sheds are relatively affordable (you can find sheds for less than $2,000); if someone wanted a shed, they could easily get one on their own.
How to update a shed to add value?
Although a garden shed may not add monetary value to your property, it could increase your curb appeal through smart home improvement, and you can do some things to ensure that it provides a good return on investment and boosts your resale value and property’s marketability.
1. Have a building permit
A shed permit is a must if you want to be sure that the home appraiser includes the structure when appraising the property; skipping this step means ignoring building codes and HOA rules that could affect your real estate transaction. If you don’t have a building permit, that shed could become a liability, IF it exceeds the minimum requirements for a shed.
For instance, some cities and municipalities don’t require a building permit for sheds that are under 200 square feet, BUT you must still meet minimum zoning requirements (5 feet from the property line, etc.) in order to avoid fines and liabilities.
2. Match the shed to the style of your home
There are a lot of unique shed styles to choose from: DIY sheds, prefab sheds, tiny home conversions, or a fully custom-built shed, but it’s strongly recommended that you choose a storage shed that matches the house. You don’t want to have a Japanese-style shed if your home is Victorian. For more DIY ideas to transform your outdoor space, check out this blog post.
3. Keep the shed in great condition
You’ll want to make sure you have a storage shed built with high-quality materials; a shed that’s falling apart or showing signs of neglect will not add any property value. It could deter potential homebuyers during home sales and hurt your perceived value, or worse yet, be a complete deal breaker. You’ll want to make sure the shed is in good condition, and if it’s beyond repair, it may be a better idea to remove it entirely.
4. Choose a shed that uses the most desirable materials
A prefabricated shed, or ‘prefab shed’, isn’t going to garner much market value, especially if it’s made of construction materials that aren’t popular in the area. For example, if your property is in an area that experiences a lot of adverse weather, a wood shed may not be the best choice; PVC sheds are a better option made with high-quality materials that withstand the elements.
You’ll want to consult your real estate agent to find out what is most popular in your local market for prospective buyers.
5. Stage the shed for home showings
If you use your shed as a marketing tool, stage it properly. For example, if your shed has been updated to be a livable tiny home-style space rather than just extra storage, stage it to highlight the functional space. You can show it as a personal office space, home gym, home office spaces for remote work areas, guest house, or a place to unwind.
Still weighing the pros and cons of building or buying a shed?
Whether you choose DIY sheds with DIY kits, garden sheds for gardening tools and lawn equipment, potting sheds, or a fully custom built shed with man caves or she sheds vibes, the key is ensuring it complements your home and adds perceived value for prospective buyers.
And if storage is the primary concern rather than home improvement, consider a self-storage facility as a cost-effective alternative that won’t complicate your real estate transaction or property value.
