Will Adding a Steel Building Increase My Property Value?
I’ve seen steel buildings increase in popularity every day because builders use these durable, versatile and flexible construction solutions in every application. Not only have homeowners utilized a steel building for residential purposes, but builders have also made additions to their existing property.
No doubt that a steel building garage will increase the value of a home, but it will also help the overall property value rise.
In an article in Realtor Magazine, the Official Magazine of the National Association of Realtors, Peggy Patenaude, with Prudential Howe & Doherty Realtors in Andover, Massachusetts, thinks a garage definitely increases the value of a property if it’s in a mid-level or higher price range and in a cold climate. Moreover, if a home doesn’t have one, it may prove a deal breaker, she says. “I think a two-car attached or detached garage can add $30,000 to a home’s value; a one-car attached or detached garage may increase it by $15,000 to $20,000,” she mentions in the Realtor Magazine article.
The author of the article also spoke with Real estate investor and author Grant Cardone, whose company is based in Los Angeles. In the article, he comments that having a garage is especially critical in this turbulent real estate market. Yet, as the article continues, he’ll consider buying a house as an investment if it doesn’t have a garage, as long as there’s room to add it. “It was different four years ago because there was so much less inventory,” he says. But Cardone also believes that the investment is a good one. “The average two-car garage will return the investment two to two-and-a-half times. It doesn’t mean you have to have one with polished or painted floors and other fancy amenities, but it does have to be clean and roomy. Adding some extra square footage doesn’t cost that much more with this type of construction,” he says in the article.
Steel buildings also utilize clear span framing, which provides open space without bulky trusses or internal columns. For many, the existence of a steel building garage is a factor that can convince shoppers to purchase a home, so it’s almost always a valuable addition to your property. Still, that’s not always the case with buildings of traditional construction.
While a brand new wooden pole barn is going to have good curb appeal, it could become difficult to maintain over the years. Steel doesn’t rot, warp, twist or bend like wood does. Since wood is an organic material, over time it will decay when exposed to the elements. Do you want to replace boards or wooden components every few years? An old wooden building that hasn’t been regularly maintained could actually make your property worth less than having no structure on your property at all.
Another thing to think about: in many cases, banks, lenders, and appraisers in specific cities or counties don’t consider a pole barn a ‘permanent structure’ because of the lack of a foundation and the fact that the walls don’t always need to be secured to the ground with concrete or other permanent methods. Additionally, pole barns aren’t typically ‘engineered’ to meet structural requirements, as they are much like an agricultural shed. Pre-engineered metal buildings require proper foundations, which means these buildings are permanent structures. Structures with foundations, that are considered permanent by most permitting offices and appraisers, normally help a property see its value appreciate over time. Since some wooden structures and pole barns aren’t considered permanent structures, you likely won’t see an increase in your property value.
A steel building is engineered to stay safe, functional and hold its aesthetic value for decades. The steel building garage you decide to build today is going to look strikingly similar and would have as much or more value to someone else in several decades – with little or no work from you. Even if you decide not to sell, and pass your land off to a family member, you’re setting them up for the future right now. Isn’t that worth your investment?