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How Much Value Does a Detached Structure Add to Your Home?

Updated: Mar 18

The number of homeowners embarking on renovation projects has increased during the pandemic. In a Houzz report summed up on CNBC, it was revealed that there was a 58% annual increase in project leads for home professionals last year. Indeed, it is now apparent that being stuck at home for prolonged periods of time pushed many homeowners to re-evaluate their living spaces and take on improvement projects to improve their lives at home.

But aside from making your home more functional or better suited to your lifestyle, home renovation projects can also increase the overall value of your home. That’s the point we want to focus on here, specifically with regard to adding detached structures.

How much will a detached structure add to your home’s overall value?

There are a lot of different detached structures that you can add to your home. Essentially, a detached structure is just any permanently installed structure that is separated from your home, but not from your property. Garages, gazebos, and sheds, for instance, are common examples.

Naturally, value added depends largely on what sort of structure you wind up building, as well as how large, practical, or well made that structure is. To give a general idea though, numbers show that adding a detached garage adds about 65% of its original value to that of the home during resale. You can expect the added value of other detached structures to fall around the same number, in relative terms. Furthermore, you also have the option of researching what features or functions might be most “in demand” for a given structure, and focus on those to enhance ROI marginally.

How to maximize your investment?

Building a detached structure is also an investment that comes with risks. If you don’t plan thoroughly, you might ultimately be left with a structure that’s more of a liability than an asset. To make the most out of your home renovation project then, and maximize that ROI down the road, start by thinking about how you can fund your detached structure.

There are a lot of ways to finance a home renovation project, but the two options that are usually chosen by homeowners are home equity loans and personal loans. An article on Marcus explains the distinction between the two, with home equity loans typically involving lower interest rates and better terms than personal loans. That said, a home equity loan also demands that you list your home itself as collateral –– meaning that failure to make repayments can result in foreclosure. On the other hand, personal loans have no collateral requirement and can be obtained simply and quickly. Choosing between the two is a matter of personal preference based on financial circumstances and tendencies. But it’s important to decide how you want to finance your renovation project early on, one way or another.

Aside from funding, there are also some additional considerations to keep in mind with regard to maximizing your investment. How your location will affect the detached structure, for instance, is definitely worth thinking about. Consider as an example that external garages in areas with harsh winters will need more robust heating systems –– adding to initial cost, but also resale appeal.

You should also think carefully about the aesthetic of your detached structure. While it might seem tempting to keep up with the latest design trends, it’s best to choose one that can stand the test of time. A post on Architectural Digest lists some foolproof design trends that can help get you thinking along the right lines, with ideas like subway tiles, exposed brick, and wide-plank oak floors all being potentially applicable to a detached structure.


All in all, a detached structure can be a great addition to your property if you want to increase its value and gain extra living space at once. It’s an involved project, but a manageable one if you give it proper consideration.

For more informative and inspirational posts on detached structures, please feel free to continue exploring our blog here on Ulrich Lifestyle.

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By Ashley Royce

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