Does a Permanent Shed Add 'Real' Value?

iron_cityOctober 31, 2007

I'm adding a 12'x14' frame-built shed to my back yard. It's styled to match the house, on a concrete base, is wired and includes a 4' porch on the front so my daughter can use it as a playhouse as she grows (plus the porch gives it a 'cottage' look and a less 'utilitarian' appearance). My wife initially balked at the $7K cost and said a Rubbermaid-type shed would serve the same purpose of storing my riding mower and garden tools. I countered with it adding permanent value to the house plus the utility we'll all get from it in the meantime. (And the HOA would not approve the Rubbermaid-type one anyhow.)

If you're looking at homes, would this be something that would be a plus, and if so, a 'big' one or not? FWIW, we're on a 1/4 acre lot in a subdivision of about 100 homes.

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Not any value to me unless it was garage sized.

    Bookmark   October 31, 2007 at 9:19AM
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Depends on the area. If you're in an area like me where there really aren't basements / garages, then yes a shed is nice, and even nicer if it's placed in a good spot in the yard so that later down the line if I wanted to add a garage sized shed also that I could.

We have a vinyl shed on a concrete pad behind the house and have cleared some trees so that we can put the garage sized one in the left back where the fence gates are.

Does it add value? Probably not. If your house had everything else that met my needs then the shed would be a bonus.

    Bookmark   October 31, 2007 at 9:28AM
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I don't think it would add any extra value to me, but it might have a slight edge if it came down to your home or another similar home.

    Bookmark   October 31, 2007 at 9:36AM
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I think the fact that it's in, and it looks good, and the HOA has approved it, means it'll give you a slight edge over other properties.

Maybe not $7k, but remember that you'll get some u$e ouf it in the meantime, which has to account for SOME of that money.

    Bookmark   October 31, 2007 at 10:03AM
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I think overall you have to consider the benefits it gives you during the time you live there. When it comes time to sell, it will probably help in a curb appeal type way in that your lawnmower and gardening equipment will be neatly out of site and your garage will look more roomy. If a family likes your house, the play aspect of it may get the kids rooting for it.

    Bookmark   October 31, 2007 at 10:12AM
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You might be better off adding to the house.

Why do you have a riding mower for a 1/4 acre lot? I think I'm getting an idea of where your wife is coming from.....

    Bookmark   October 31, 2007 at 10:13AM
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I'm not sure it is a plus or not, imo, it sounds too large for your lot size, but suspect it depends on orientation to the lot & house. I think most folks, who would want a shed, would throw a $1500 value on it; certainly not $7000. Sheds like that are for owners who don't dream of moving.

    Bookmark   October 31, 2007 at 10:19AM
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I'd rather have the 'yard' on a 1/4 acre lot than a shed full of stuff.
It would add no value to me... and I would consider it a minus (just like swimming pools are a minus for me) if several houses are comparable.

DH has a push mower in the garage for our 1/3 acre lot. Why do you need such a big contraption for such a tiny yard?

    Bookmark   October 31, 2007 at 10:20AM
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You plan to let your daughter use it as a playhouse while your mower is taking up the floorspace and your tools are hanging on the wall? Add a porch if you want to make it look cuter and less like a shed, but I'm seeing a basic incompatibility in your argument about it's multi-purpose usefulness...

    Bookmark   October 31, 2007 at 10:28AM
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solie: "Why do you have a riding mower for a 1/4 acre lot?"

luann: "Why do you need such a big contraption for such a tiny yard?"

As long as people seem to be in the mood of answering a queation with a question: Why do you feel it necessary to judge the OP rather than just respond to his inquiry?

Wow, first it was people whose houses are too big, and then it became people who keep their thermostats too high in the winter, and now it's people who use a riding lawnmower.

I can't wait to see what some of you complain about next.

    Bookmark   October 31, 2007 at 10:51AM
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a 12x14 shed is NOT going to take up that much room on a1/4 acre lot unless your house is large and you have little back yard. my parents 3000 sq ft single story house is on a 1/4 acre lot and they have a 20x40 pool PLUS a 10x12 shed and still have lots of room for a swing set and a trampoline. it all depends on HOW things are laid out as to whether it is too large.

a riding mower for 1/4 acre may seem overkill to some, to me it is not. heck when we were renting i used a 48" rider to cut the tiny 50x75 lot. overkill, yes, but i bought it to cut the 2 acres we were going to build on and put it to use at home as well. older people, or folks with a medical condtion, cannot get out and push mow a lawn. some people just like the fact that they can cut the grass without getting sweaty. who are any of you to judge the OP?

my house has a 19x19 permanent shed, as well as a 19x8 pump house for the well. both match the house. the county charges me about 75.00 a year in taxes for the shed since it is permanent. that may not sound high, but when you consider that my property taxes are less than 950.00 a year, proportionally it IS high.

BTW, i think it is a great idea. but you can go ahead and give up on convincing anyone(including yourself!) that it will be for your kids!

    Bookmark   October 31, 2007 at 10:56AM
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I have one that I built which looks exactly like my house. I looked around for the HD type sheds and was not happy with them, so I built my own big one. Since i did it myself, it cost me a lot less than 7k. Not sure how much though.

I would like a shed like that if I were looking at a house. I honestly think that you can never have too much storage space. Even if you did have a big house with storage, the outside stuff needs to go somewhere. Using the garage to put stuff into, instead of one or both of the cars, is definately not what I want to do.

    Bookmark   October 31, 2007 at 11:18AM
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I think it really does depend on your area. I live in an urban area where basements are not only uncommon, many people who have them experience considerable drainage problems in our rainy winters. We have a 10x20 shed built by the original owner, brick foundation with wood framing above. We remodeled it by having it drywalled and painted inside. It's 2/3 seating area (faces a private patio) and 1/3 dry, safe storage.

I wouldn't think it necessarily adds $5K of value to our home. However, it's an attractive feature, and we've gotten good use out of it in the interim.

Value is always self-perceived. If you find the shed useful while you live there, that's all the value necessary. And a value feature that is physically attractive has an aesthetic quality that can be VERY valuable.

Rubbermaid sheds are sturdy and utilitarian. But nobody really wants to look at them all the time! If this shed is going to be somewhere obvious on your lot, then an attractive, well-maintained permanent structure would be an asset during resale. It may not be something that adds actual dollars to your resale price; but it won't detract from it either, which a Rubbermaid shed in full view, probably would.

    Bookmark   October 31, 2007 at 11:39AM
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bethesdamadman - I was responding to his inquiry - he's asking if building a shed makes economic sense. The answer is probably no, UNLESS there is some special reason he needs a riding lawnmower (and I can't imagine any situation where is would be cheaper to build and maintain a 7k shed than to pay someone to mow the lawn).

davidandkasie - Who are you to judge to OP for saying that his kids will use the shed?

    Bookmark   October 31, 2007 at 11:42AM
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We have a cedar shed on a lot about the same size as yours. It's my garden shed & I love it. It's got window boxes full of annuals, painted/roofed to match our home, inside is my potting bench, a rocker & ottoman for me to sit & write in my garden journal, a ceiling fan, & my collection of antique, white ironstone platters/plates are displayed on one wall, & one of those indoor/outdoor braided rugs on the floor. The shed is nestled between several mature conifer & maple trees so is a bit hidden & out of the way. It's also shaded so stays cool in the summer. I don't use it to store heavy equipment though.

I'm sure I wouldn't have paid $7K for it but since it was on the property when we only took about $1K to convert it to a cute little garden shed. So, for me your shed would give your property an edge over another but would not increase the value of your house $7K.

Good luck convincing your wife!


    Bookmark   October 31, 2007 at 11:50AM
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Here's my shed.^^^ You could barely see it because it's behind my prized, grand, overpowering pool.

I say go for it, whether it makes monetary sense or not. If you 'need' and 'want' it, then do it. Life's too short.

    Bookmark   October 31, 2007 at 11:59AM
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Will your HOA allow this? Is there a FAR (Floor Area Ratio) code? If your house plus this shed do not put you over the allowance and it is attractive, it could enhance your property -- or not, depending on the standards in your area. Talk to a couple realtors in your area.

I, too, was wondering how this shed could do two things at once: provide mower and tool storage AND be a playhouse. Maybe it would become yard storage AFTER your kids no longer want a playhouse?

    Bookmark   October 31, 2007 at 12:20PM
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The shed doesn't overwhelm the back yard at all and like I said, is designed to match the house with a hip roof and the same siding, trim and shingles. The mower fits inside so I can put my truck in the garage this winter. During the summer, the mower can go back in the garage and the kids get to use it as a playhouse. The reason for a rider is that with the hours I work, I need to be able to get home and cut the grass quickly, being done before it gets dark. I usually begin well after I see the neighbors starting to cut their yards and am done before they are. At least three other homeowners have bought riders after seeing how quickly I get mine done. (OK, maybe it's a "guy thing" also...)

Here's the breakdown:

$250 permits
$1800 concrete base, 2" above grade at front, 11" at rear
$4000 shed, built and installed
Estimating $1K for electrical work (some of it inside house but still kinda related)

Friends of ours filled their back yard with a pool that allows about 4' or walking room on two sides and barely enough room for a BBQ on the small patio to the side.

    Bookmark   October 31, 2007 at 12:36PM
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It seems like this is something you really thought out, now that you gave more information.

If it works for you, do it!
But I don't think you will get the price back at resale....

    Bookmark   October 31, 2007 at 12:49PM
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I assumed you didn't have a garage. That makes a big difference, as you really could use it for other purposes during the summer.

I agree that you probably wouldn't make the money back, but it could be a nice amenity for your family. I'd try and site it so that it stays as cool as possible during the summer and put a ceiling fan in. You could really do a lot of cool things with the space.

    Bookmark   October 31, 2007 at 1:23PM
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All I'm thinking is "man space" though with the mower in there, you won't have much room. Why not make it a little bigger so you can have room for the mower/tools and man space or a place for any family member to chill? That's what my husband would do!

Build what you want and enjoy it. Who knows if it'll be good for resale. Hard to tell in the current market and impossible to tell in future markets.

I see nothing wrong with having a riding mower. My husband would love one. Our yard's not very big, but does take a good hour or so to mow and he's usually out there mowing in the dark since the sun sets so dang early these days. If we could justify the cost of a riding mower, we'd have one too.

    Bookmark   October 31, 2007 at 2:46PM
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davidandkasie - Who are you to judge to OP for saying that his kids will use the shed?

perhaps you misread the implied sarcasm in that. though i do doubt it will be for them for very long. that is not judging, that is being realistic.

the shed will turn into A) a workshop or B) a kids play house. but it won't safely be both at the same time. youcannot work while tripping over kids things, and once any type of power tools are stored in there his wife won't let the kids play there.

to the OP, you may want to give this some serious thought before you build. if you can go bigger and everythign look fine and fit your budget, then go bigger. the amount of stuff you need to cram in there will swell to fill all available space. i have yet to hear any one say they wish they had built a workshop/shed smaller. or at least anyone other than a wife/neighbor who does not like looking at it cause it ruins the view of the garden!

    Bookmark   October 31, 2007 at 4:55PM
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We have acreage and we spent about the same for a shed (if you inflate it to today's dollars). It immediately became my husband's "man" space, although it was to be shared with me for storing out of season supplies for my business. It was electrified. It's also attractive from the outside.

I love it that he has a place to keep his woodworking supplies set up, much in the same way I love it I can keep my sewing stuff set up. It's a great place for his hobby and also keeps the equipment handy for house repairs.

As for looking for outbuildings in any proposed purchases, you bet it would make a difference to me. I'm a professional gardener, but even if I weren't I'd be an amateur gardener and need a place for tools, pots, and the like. I hate to see homes where the garage is used for everything but vehicles and most of them are cluttered eyesores. Even my kid who has 160 acres has utility sheds and is putting up more of them. They keep your property and house uncluttered and get out of season stuff out of your hair. I've seen people spend more on closets. What's the difference. I'm in your camp.

As someone else said, your belongings will grow to fit your shed, lol. Make it large enough for your needs and put in plenty of shelving.

    Bookmark   October 31, 2007 at 5:16PM
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Any shed is only half the size that you will eventually need.

    Bookmark   October 31, 2007 at 7:35PM
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One thing to think of, too, is whether it will add "value" to your tax assessment. In my town sheds with 100 square feet, or less, are not counted on the real property evaluation. Can you get by with a smaller one?

I agree, it wouldn't add much to my offer (maybe a couple thousand, max) but it might sway me towards your property over another that was nearly identical.

    Bookmark   October 31, 2007 at 7:36PM
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If you sell in 20 years and its falling down then no. If you sell in a few years then yes, not what you paid for it but then you don't usually get back all the money you put into other things either. Personally I would love the shed you describe vs. some of the junk (I would rip out a rubbermaid shed instantly) other people seem to tolerate. I love sheds. And barns. As long as their nice which yours certainly sounds.

    Bookmark   October 31, 2007 at 8:20PM
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We put in our 1500 square foot "shed" (workshop/garage) and the additional "value" added to the property was only $2k. This is for a heated and cooled substantial structure that cost us almost 50K to build, but because it was classified as an "outbuilding", the tax assessors only would value it at the max allowable. I have no idea what a traditional appraisal would value it as, but I suspect that they would add 10K max difference between us and a similar size/like property without the garage.

And, everyone is right about the shed being half the size it's needed to be. That was determined by my husband right after completion when he declared that it should have been twice the size so he could store even more non running classic car parts in a climate controlled atmosphere. Alas for his sake, as I firmly rejected that expansion. We already have the reputation on the street of "the garage with the small house attached". (The house really is bigger than the garage, but because of perspective and ceiling heights, the garage always looks bigger.)

    Bookmark   October 31, 2007 at 8:54PM
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All things being equal, I would not pay 7k more for your house because it has shed. But, if the shed was done nicely, it would give your house an edge over a similarly priced house.

    Bookmark   November 2, 2007 at 9:29AM
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That's what I keep thinking about in this discussion -- I don't see the shed as earning its $$$ back but more of a "generating goodwill" kind of thing in a sale.

    Bookmark   November 2, 2007 at 9:49AM
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A good quality permanent shed definitely is worth considering when purchasing a home. I like to keep explosives out of the house such as gasoline, propane, mapp gas, 40 gallons of kero etc. It also serves as the "doghouse" at times. : ')

    Bookmark   November 2, 2007 at 11:05AM
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Unfortunately our experience so far (in selling our house now) is that our shed has not added any value to our house (and it is a large, nice shed). In our town many houses do not have basements. It seems that many buyers want expanded kitchens or bonus room extensions on the house (ie living space) and are willing to do without garages, sheds, and all the practical amenities that you would think would be important. Houses comparable to ours but WITHOUT garages or sheds have been selling ahead of ours where they have converted the garage into an extra room. Several years back in our area, houses without garages were very difficult to sell. Doesn't seem to be that way anymore in our experience - it seems its all about lifestyle - jacuzzi vs shed, extra room vs garage...etc

    Bookmark   November 4, 2007 at 11:15PM
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In our neighborhood, sheds are pretty common and are wanted, and we also have 1/4 acre yards. Our shed is 10x12, it's a Tuff Shed brand. Let me mention we have a 3-car garage and the shed is definitely needed! Now, I don't know what it actually adds to resale, but I certainly wouldn't expect what you put into it.

    Bookmark   November 5, 2007 at 3:37PM
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As a follow up to the message I posted quite awhile ago, the shed is finally done and I wanted to show what the result is. I'm having it wired tomorrow for a light inside. The exposed wood in the photo has since been covered with white trim.

The mower is inside for the winter but I expect that my daughter will be able to play with her friends here in the coming summers.

Here is a link that might be useful: Finished Shed

    Bookmark   January 12, 2008 at 3:07PM
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That turned out great.

    Bookmark   January 12, 2008 at 4:23PM
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Nicely done!!! Were I looking to buy, a beautifully thought out shed would be a greater asset than a swimming pool... where are those folks going to be when water conservation issues become more acute? As for recouping the bulk or at least some of your expenditures, I wouldn't hazard a guess in today's market or any time soon down the line.

    Bookmark   January 12, 2008 at 5:00PM
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Nice - I could see that adding value if it is needed - no available room in the garage, for instance. If someone who was looking to buy just uses a lawn service and doesn't own much in way of taking care of the yard, maybe it would add nearly nothing, but I'd guess you might see a little bit of the $7k back. I don't think you'll see all of it by any means, but then, that's true of about every home improvement project.

What is that concrete-looking strip in the background at the base of the fence? It looks like a narrow sidewalk?

    Bookmark   January 13, 2008 at 9:40PM
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Well that's really cute.

If I were going to buy your house, though, I wouldn't pay extra because of the shed. Even though it's nice, I really don't care that much about it and would bid on your house according to how much the HOUSE was worth. If I got your house with my bid, I would consider the shed to be a pleasant side-benefit of my purchase.

However, if it were big enough to be a shop or an extra garage (at least 15 x 15) that would be different, and I would consider your property to have additional value.

    Bookmark   January 14, 2008 at 9:47PM
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It's a very attractive building and big enough to have the potential to be turned into an office or studio if not needed for yard equipment. No idea if will add value when you sell, though.

    Bookmark   January 16, 2008 at 9:32AM
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Beautiful job - congratulations! Well designed and well thought-out. Hope it works out for you as planned, and it certainly can't hurt your property values any, to have done such an excellent job. And in the meantime you get all the benefits of having it - I'll bet you've made a lot of wives and kids in the neighborhood envious!

    Bookmark   January 16, 2008 at 11:41AM
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The concrete showing behind is a spillway that channels rainwater into the storm drain. It doesn't show well, but back yards on both sides slope towards it. The wooden fence visible in the photo is about 6' too close to it and we (the HOA) are working to resolve that problem.

Some of the neighbors have jokingly asked if I'm looking for renters to move in there. When asked how I decided on the size, I just say it has to be big enough for a recliner, a HDTV, and a microwave so when I'm "in the doghouse" with the missus, I have a nice 'doghouse' to go to.

Springtime will see some nice landscaping around it. Thanks for the comments and input. Even though it may ultimately not 'pay off', the utility of having it and also providing a nice playspace for my daughter is reward enough for me.

    Bookmark   January 17, 2008 at 10:30PM
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I'm new here, was just passing through when I saw your post.
I just sold my lake house, it has a pergola with stained
glass windows, a really nice 10 x 12 garden shed that
matches the house. When the house was appraised neither of
those plus the beautiful pond, creek, dock and sea wall at
the lake added to the price of the house.

I wish I'd done more work inside and forgotten about the
pergola, pond, creek, and garden shed. Yes, it is a
beautiful setting but it's the square footage and those
extras inside that count.

Your garden shed-playhouse is beautiful, just enjoy it
and don't expect any monetary gain for it when you sell.

    Bookmark   January 19, 2008 at 6:13PM
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I'd pay full value for it.
Moving from over 8,000sqft plus 2 guest houses, to 4,400 sqft plus 3 garages - I'd gladly pay for it. We are building one similar - already had concrete slab - and it has cost us 6k and not even finished. Didn't help that the builder put 2K on our account that he sold out of the back of his car, or used on other jobs and collected for there. I could ring his neck, but we'll never get anything back. We even let him borrow our older surburban which he vanished in and we had to get back by sitting outside his gals place of work and forcing him to get out and unload his stuff right there on the sidewalk. Police weren't too concerned until they ran a check on him and found that he was wanted big time, even for assault. Now he knows our property, house, garages, attic, and he is a criminal. He lied about being uncle to city mayor or we wouldn't have let him have such access.
Getting back to the post, your little house is wonderful, and can be used for many things, from tea-parties to sundowners! The porch added more than if you had just made the inside bigger. If you did all this by yourself, you are a jewel.

    Bookmark   May 11, 2008 at 4:42PM
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we had a shed built in early spring of 2008. Today our house has been on the market for 6 weeks, and is under contract, pending agreements on the inspection "to do" list. I'm afraid to even say that out loud after all the horror stories I've read on the webforums in the last 2 days. The wait of finalizing everything is driving me insane!

we spent over $1,682 on the shed, and although we know we didn't get the money back on it, I think for sure it gave us an advantage over other properties being sold that were similar, because it works on our particular property. it adds more. Depending on what kind of shed, where it located on the property, etc. I think it can help in selling a home.
I've done a pretty good job making the shed look as cute as possible, since I use it for my Artwork, but it can definitely be used as a children's playhouse, or as a garden house as well.

here is a picture:

what do you all think? you think the charm would make you look at the property in a different light?

    Bookmark   September 16, 2008 at 9:52PM
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somedaysomewhere, hope you don't mind if I fixed your links

    Bookmark   September 16, 2008 at 11:33PM
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Depending on where you are it can vary but for most it's considered to be more "user value" and won't bring any monetary value to the property.

    Bookmark   September 17, 2008 at 6:51PM
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Our 1910 house has a 2-story "bank shed" in the backyard-- upstairs is roughly 18'x10, downstairs 18'x8'. We love love LOVE our shed-- the upstairs is hubby's workshop (he's an electrician, and he re-wired the whole thing so we can use powertools to our heart's content), and the downstairs, which opens directly to the lower part of our yard, is used for mower/garden tool storage in the summer and is our butchering house in the winter. This summer the downstairs doubled as the food and beverage area for our Labor Day party, since it's built into the ground and stays nice and cool.

The shed wasn't a selling point when we bought the place, but now that we've lived there for a few years, we think it's one of our property's best features.

    Bookmark   September 18, 2008 at 11:53AM
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Same here cnvh

    Bookmark   September 18, 2008 at 4:00PM
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I would like a shed like that, especially if it matched the house and the HOA approved it.
I wouldn't live in a home with a HOA, but I would like the shed.
I wouldn't pay an extra 7K for one, but that's just me.

    Bookmark   September 21, 2008 at 2:21AM
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It would make the difference, resulting in us buying your house over another home w/ similarities. Storage is HUGE for families. In fact, we just paid almost the same amount to have a 12 X 18 shed added to our property in the only part of the yard that would accommodate it--not to mention it blocks an unsightly overgrown area next door. We have very little basement space and our yard looked like Sanford and Son while we waited for the permits/variance and building to take place. Our yard is already looking so much better and Long Island is so bureaucratic and punitive that having variances and permits in place is a huge selling point. I'd probably pay about $5000 additional over a similar property for the convenience of not having to deal with the dreaded Town Hall nightmare.

    Bookmark   June 28, 2011 at 11:36AM
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