Whats the return on a shop? - Pirate4x4.Com : 4x4 and Off-Road Forum
 
Pirate4x4.Com : 4x4 and Off-Road Forum  

Go Back   Pirate4x4.Com : 4x4 and Off-Road Forum > General Tech > Shop and Tools
Notices

Reply
 
Share Thread Tools Display Modes
Old 08-08-2007, 10:38 AM   #1 (permalink)
RIP Angel
 
RDUB29's Avatar
 
Join Date: Jan 2004
Member # 26250
Location: NW Ore-Gun!
Posts: 447
Send a message via AIM to RDUB29
Whats the return on a shop?

Whats the return 50%, 75%, 100% build price at sale of the house?

Ryan
__________________
Come check out my Art Gallery!!
www.rtwgraphics.com or
https://www.facebook.com/pages/RTW-G...06682312735907
RDUB29 is offline   Reply With Quote
Old 08-08-2007, 11:00 AM   #2 (permalink)
Registered User
 
Join Date: Jun 2002
Member # 12499
Location: In a Snap-On truck tryin' to make it pay
Posts: 10,772
When I was shopping for a house, the agents I spoke with said it was zero.

The only folks who really want a shop are folks like us.
PTSchram is offline   Reply With Quote
Sponsored Links
Old 08-08-2007, 11:08 AM   #3 (permalink)
Registered User
 
Join Date: May 2004
Member # 30432
Location: Dallas Texas Again!
Posts: 1,640
To folks like us it could be over 100%... I am building a shop with an appartment in it right now (check out my build thread)

If I was to do it all over again I would not build but look a little harder for a hose with a shop or even buy a shop in town rather than building cause it takes 10 times longer that expected and its a huge stress and PITA...

To someone without hobbies I would say its of zero value!

JOSH
__________________
SHOP AND APPARTMENT FOR SALE [url]http://pirate4x4.com/forum/showthread.php?t=589523[/url]
SPEEDCRAVIN is offline   Reply With Quote
Old 08-08-2007, 11:20 AM   #4 (permalink)
RIP Angel
 
RDUB29's Avatar
 
Join Date: Jan 2004
Member # 26250
Location: NW Ore-Gun!
Posts: 447
Send a message via AIM to RDUB29
Quote:
Originally Posted by PTSchram View Post
When I was shopping for a house, the agents I spoke with said it was zero.

The only folks who really want a shop are folks like us.
I hear what you're sayin but, I have a 968sf house w/ 1 car garage. I'd think it would worth it's weight in gold if not just for storage space. But like you said others may not see it this way.
__________________
Come check out my Art Gallery!!
www.rtwgraphics.com or
https://www.facebook.com/pages/RTW-G...06682312735907
RDUB29 is offline   Reply With Quote
Old 08-08-2007, 11:38 AM   #5 (permalink)
Registered User
 
Join Date: Jun 2002
Member # 12499
Location: In a Snap-On truck tryin' to make it pay
Posts: 10,772
We looked at a lot of places and every stinking time, the agents would look at us weird when I said I needed at least 2K sq ft of shop space.

One of the places we went to, out in the middle of nowhere, five or six house in a row in a cornfield, had codes, covenenants and restrictions. One of the restrictions was no more than one car per resident. The agent got all pissy when I said that wouldn't work for us and we needed to leave right then. This bitch followed me to the car telling me to move to Tennessee!

We ended up finding a place with a 2600 sq ft house and 3100 sq ft barn. The owner was considering tearing the barn down to have a better chance of selling
PTSchram is offline   Reply With Quote
Old 08-08-2007, 11:46 AM   #6 (permalink)
Paying for others
 
jeepcrazie's Avatar
 
Join Date: Nov 2004
Member # 38032
Location: LEWYSVILLE
Posts: 1,034
It completely 100% depends on where you are located. A "shop" is not necessarily only a shop, it can be used for rv parking, extra car storage ect. In a resort type town, you will almost always get at least your money back out of it if not more.
__________________
Shady Lady VIP #13
jeepcrazie is offline   Reply With Quote
Old 08-08-2007, 11:53 AM   #7 (permalink)
Registered User
 
Join Date: Jun 2002
Member # 12499
Location: In a Snap-On truck tryin' to make it pay
Posts: 10,772
RV storage is a unique use for a building, requiring very tall doors and a long bay. If it wasn't built for that originally, it might not work very well.
PTSchram is offline   Reply With Quote
Old 08-08-2007, 11:59 AM   #8 (permalink)
Banned
 
Join Date: Jul 2005
Member # 49991
Location: It's getting HOT!!
Posts: 361
I just got a re-aparisal of my property and my 30x40 cinder block shop came in at 50k. Hell it is not even done only cost me $11,500 so far, all I have to do is enclose the eves. so I'd say that it does increase the value of your home.
Hellbound is offline   Reply With Quote
Old 08-08-2007, 12:00 PM   #9 (permalink)
Paying for others
 
jeepcrazie's Avatar
 
Join Date: Nov 2004
Member # 38032
Location: LEWYSVILLE
Posts: 1,034
Quote:
Originally Posted by PTSchram View Post
RV storage is a unique use for a building, requiring very tall doors and a long bay. If it wasn't built for that originally, it might not work very well.
You are correct, that is another thing to consider when building a shop you plan on making a return on someday. Try to make it more than single purpose.
__________________
Shady Lady VIP #13
jeepcrazie is offline   Reply With Quote
Old 08-08-2007, 12:08 PM   #10 (permalink)
Registered User
 
Join Date: Jun 2002
Member # 12499
Location: In a Snap-On truck tryin' to make it pay
Posts: 10,772
Quote:
Originally Posted by Hellbound View Post
I just got a re-aparisal of my property and my 30x40 cinder block shop came in at 50k. Hell it is not even done only cost me $11,500 so far, all I have to do is enclose the eves. so I'd say that it does increase the value of your home.
Just like everything else in Real Estate, LOCATION X 3.

Around here, they don't increase appraisal value by even the cost of the materials.
PTSchram is offline   Reply With Quote
Old 08-08-2007, 12:52 PM   #11 (permalink)
RIP Angel
 
RDUB29's Avatar
 
Join Date: Jan 2004
Member # 26250
Location: NW Ore-Gun!
Posts: 447
Send a message via AIM to RDUB29
Quote:
Originally Posted by PTSchram View Post
We looked at a lot of places and every stinking time, the agents would look at us weird when I said I needed at least 2K sq ft of shop space.

One of the places we went to, out in the middle of nowhere, five or six house in a row in a cornfield, had codes, covenenants and restrictions. One of the restrictions was no more than one car per resident. The agent got all pissy when I said that wouldn't work for us and we needed to leave right then. This bitch followed me to the car telling me to move to Tennessee!

We ended up finding a place with a 2600 sq ft house and 3100 sq ft barn. The owner was considering tearing the barn down to have a better chance of selling

Let me see pics of the barn of the barn. Thx!
__________________
Come check out my Art Gallery!!
www.rtwgraphics.com or
https://www.facebook.com/pages/RTW-G...06682312735907
RDUB29 is offline   Reply With Quote
Old 08-08-2007, 01:05 PM   #12 (permalink)
Registered User
 
Join Date: Jun 2002
Member # 12499
Location: In a Snap-On truck tryin' to make it pay
Posts: 10,772
Search for new shop under my user name. I posted some pics when we bought it.
PTSchram is offline   Reply With Quote
Old 08-08-2007, 08:54 PM   #13 (permalink)
Registered User
 
TLCObsession's Avatar
 
Join Date: Feb 2001
Member # 3245
Location: Bellingham, WA
Posts: 1,130
'Women buy kitchens, men buy garages' if you can deliver both, it works well - its just that the shop should not be seen from the house or approach. If you can see it (and around here & CA, a lot of people do metal sided pole barns), the face you can see should look really nice.

I have 4 sets of custom home plans on my desk for timber frames we are working on - 3 of them have 6 car garages or shops. The other is a mmonitor style barn for a woman with living quarters above, and all shop below.

Jim
__________________
Never subscribe to a conspiracy theory when the stupidity theory will suffice.
TLCObsession is offline   Reply With Quote
Old 08-08-2007, 09:24 PM   #14 (permalink)
Registered User
 
Join Date: May 2001
Member # 4878
Location: Bremerton, WA
Posts: 7,654
Send a message via ICQ to Travis Waldher Send a message via MSN to Travis Waldher Send a message via Yahoo to Travis Waldher
Answer - if you build a shop, spec it to be convertable to a 2nd dwelling.

The permit is going to cost more (livable space vs. not), but if you planned on plumbing, electrical, and maybe gas anyway it's not adding an insane cost to the venture. It will bump up your property taxes though.

So, lets say the market is not so good for a shop, since you built your shop with space for a furnace, bathroom, and kitchen in mind you could convert it for a relatively small amount of money prior to selling.

At that point it can be advertised as a guest house, MIL's house, renters house, etc. You're buyer pool just got a LOT bigger.

Last edited by Travis Waldher; 08-08-2007 at 09:26 PM.
Travis Waldher is offline   Reply With Quote
Old 08-09-2007, 10:10 AM   #15 (permalink)
ScottFJ40 V2.0
Guest
 
Member #
Posts: n/a
Quote:
Originally Posted by Travis Waldher View Post
Answer - if you build a shop, spec it to be convertable to a 2nd dwelling.

The permit is going to cost more (livable space vs. not), but if you planned on plumbing, electrical, and maybe gas anyway it's not adding an insane cost to the venture. It will bump up your property taxes though.

So, lets say the market is not so good for a shop, since you built your shop with space for a furnace, bathroom, and kitchen in mind you could convert it for a relatively small amount of money prior to selling.

At that point it can be advertised as a guest house, MIL's house, renters house, etc. You're buyer pool just got a LOT bigger.
Good point, but it depends on your local codes and how much property you have.
Our property is 3.93 acres. In my zipcode you need a full 2 acres per house. So mine could never be turned into living quarters.

I know mine has increased my property value, but I am not going ANYWHERE, anytime soon, and the shop is for me so I don't care about the value right now.
  Reply With Quote
Old 08-09-2007, 01:14 PM   #16 (permalink)
Pirate4x4 Addict!
 
PAToyota's Avatar
 
Join Date: Oct 2004
Member # 37600
Location: South Central Pennsylvania
Posts: 7,662
Send a message via AIM to PAToyota Send a message via Skype™ to PAToyota
I'd say it isn't as much a question of return as a question of market. If you want to be able to sell quickly, the shop is going to likely be a negative. If you're willing to wait for a buyer that wants a shop, it would be a positive. I had my property appraised a few years ago and the size of the shop was listed as a negative. Since then, two people on my street have added similar sized garages to their properties and one sold at the asking price the first week because the buyer had a car collection and it was just what he wanted...
__________________
Quote:
Originally Posted by Roxywheels View Post
When a vagina is involved, there is no such thing as no strings attached.
GET INVOLVED - Join the Blue Ribbon Coalition

'93 Chevrolet 6.5TD K2500 NV4500 Std. Cab Longbed 170K
'85 Toyota 22R RN60 4x4 Std. Cab Shortbed 178K (Currently retired for rebuild)
PAToyota is offline   Reply With Quote
Old 08-09-2007, 03:47 PM   #17 (permalink)
Registered User
 
Join Date: Apr 2005
Member # 46765
Location: Glendale, AZ
Posts: 67
Where I live in Lousy-ana, I've been told shops count mostly as "out-buildings" and increase value no more than $20k. That said, I have a 30x40 next to my house, which is all on 3 acres....and the shop is why I bought the house. The shop cost the PO about $30k (it's bricked to match the house and can be seen from the street), so $20k increase on a $30k investment is a losing proposition...depending on who you're talking to. So I guess it's like others have said..."actual" value is practically nil, but perceived value could be huge deal to the right buyer....like it was when I bought my place.
Talking Head is offline   Reply With Quote
Old 08-09-2007, 07:18 PM   #18 (permalink)
Registered User
 
Join Date: May 2004
Member # 30432
Location: Dallas Texas Again!
Posts: 1,640
I got the same from everyone when planning my build... They all said it was an outbuilding... I was going to buy a small house down the street and build my shop and then build my dream house in a couple years... It was easier to build an apartment in one end... This what it is considered an additional residence and can be rented out if I was to sell it... This way it increases the value of the shop, property and a better investment for a potential buyer...

Check out my build in this section...

JOSH
__________________
SHOP AND APPARTMENT FOR SALE [url]http://pirate4x4.com/forum/showthread.php?t=589523[/url]
SPEEDCRAVIN is offline   Reply With Quote
Old 08-12-2007, 11:21 AM   #19 (permalink)
D60
Zeus of the Sluice
 
D60's Avatar
 
Join Date: Aug 2001
Member # 6398
Location: CO
Posts: 3,588
I've always thought outbuildings increase the value of any property considerably, but it may just be that that is what I want.

I do agree that the LARGE majority of buyers don't care about large shops tho. Generally anything more than a one car garage is described as huge, large or oversize in real estate propaganda. And that says nothing of ceiling height which is generally standard 8' which is useless IMO.

We tried and tried to find property with a nice shop already on it, but no one builds 'em right. You either find barns which are intended only for livestock (no insulation, dirt floors) or normal garages which are simply too small. And then no one ever wires 'em right, *if* they even have 220 the whole service to the "shop" is likely 50A.

For all these reasons we just gave up and built exactly what we wanted. However had we found something with a 2k sq ft shop insulated with 10'+ walls and garage doors taller than the standard 7' we woulda been willing to try a LOT harder to get the place vs a similar property w no shop.
__________________
You know it gets better, so of course it gets worse.
D60 is offline   Reply With Quote
Old 08-12-2007, 03:03 PM   #20 (permalink)
Registered User
 
Join Date: Jan 2004
Member # 26409
Location: Minnesota
Posts: 224
Quote:
Originally Posted by PTSchram View Post
When I was shopping for a house, the agents I spoke with said it was zero.

The only folks who really want a shop are folks like us.

I'll second that. I paid very little more for my new house with the shop than the place would have sold for without the shop. I believe that shops actually turn off some buyers who don't want to hassle with a giant building they wouldn't use or would use very little of.
jnutter is offline   Reply With Quote
Old 08-12-2007, 05:17 PM   #21 (permalink)
Registered User
 
Join Date: Aug 2007
Member # 97542
Location: Gunnison, CO
Posts: 16
I live in a "tourist" town...............

My shop is 25x32, cause that as big as I could fit behind the house. Its a Q hut style, but I built the exposed end wall out of T&G pine, nice man door, and 2 windows. Right now, I have about 14K in it. The 12x8 roll up will cost me 1100 bucks. I will run the electric myself, up to code.

My neighbor, who is an appraiser for the county, put the value of the bldg at 35K.

Winters here are pretty bad (-20 and lower for days), so having a plce to park out of the weather is a real plus.
7LBRONCO is offline   Reply With Quote
Old 08-12-2007, 10:25 PM   #22 (permalink)
Registered User
 
irishrokbandt's Avatar
 
Join Date: Sep 2005
Member # 52833
Location: Morgantown WV
Posts: 38
Send a message via AIM to irishrokbandt
Like it has been said shops are kinda iffy on if you get a big return or not, Things to consider first and formost dont build to close to your house,and do not let it over shadow your house. Build it kinda tall with 10'-12' doors and maybe a drive through and later it would appeal to RV owners as a garage for there rvs, something else try and side it close to or the same as your house to blend it in it will be more appealing to home buyers,neighbors and your wife.Work shops, off street parking and storage are almost always a plus to home buyers.
irishrokbandt is offline   Reply With Quote
Old 08-16-2007, 11:15 AM   #23 (permalink)
Pirate4x4 Addict!
 
PAToyota's Avatar
 
Join Date: Oct 2004
Member # 37600
Location: South Central Pennsylvania
Posts: 7,662
Send a message via AIM to PAToyota Send a message via Skype™ to PAToyota
Another issue - and some have alluded to it already - is what the building looks like and how it is situated with the house. Like the quote about men shopping for garages and women shopping for kitchens, if the garage/shop looks like crap you're likely to kill the deal because the wife won't want it even if the husband does. If the aesthetics are there, it doesn't compete with the house, and ties together into a nice package there are enough automotive hobbiests out there that you will find a buyer and get a decent price for it. If it is a standard pole barn, looks like crap, takes up half the backyard, and is just a white elephant then it is obviously going to lower the resale value of the whole property.
__________________
Quote:
Originally Posted by Roxywheels View Post
When a vagina is involved, there is no such thing as no strings attached.
GET INVOLVED - Join the Blue Ribbon Coalition

'93 Chevrolet 6.5TD K2500 NV4500 Std. Cab Longbed 170K
'85 Toyota 22R RN60 4x4 Std. Cab Shortbed 178K (Currently retired for rebuild)
PAToyota is offline   Reply With Quote
Old 08-17-2007, 01:03 PM   #24 (permalink)
Zeus of the Sluice
 
bigdude's Avatar
 
Join Date: Jul 2001
Member # 6007
Location: Tulsa, OK
Posts: 4,457
In our recent 6 month search properties with shops & barns (our initial requirements) cost very little if any more than equivalent properties without. We ended up opting for a home with a 40x60 barn that had a 40x40 pad inside, 100 amp electrical service, and water plumbed to it. In the end I will build my wife a new barn for the horses and convert the current barn to a shop.

For reference the neighbors home is for sale, same 10 acre plot, same fence, about the same square footage, interior is about as nice, no barn, no shop, price is about $1K under what we paid and the guy has had a ton of showings.

Not only do kitchens sell homes to women but so do floors... Ours are all wide plank pine which is what my wife has always wanted.
__________________
4-Seats of Fury
LS1, 700r4, Atlas 3.0, 2.5 SAWs, Reds

Lead Foot Syndicate

Last edited by bigdude; 08-17-2007 at 01:04 PM.
bigdude is online now   Reply With Quote
Old 08-17-2007, 07:42 PM   #25 (permalink)
Registered User
 
Join Date: Sep 2001
Member # 6957
Posts: 4,263
also what size is your shop??? guy across the street home is for sale and has a "shop" thats 16x35 which is nice seeing how the garage has been made into a room. i'm planning on a 30x40 which will be dual purpose built.
ironpig70 is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -7. The time now is 06:24 AM.


Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.6.0 ©2011, Crawlability, Inc.