Adding backyard pod, increase home value?

[Brian M.]

Hi,

Just a general question here. Would adding a backyard pod with AC, no bathroom, add value to your home?

We are considering buying a $1.25 million home in Austin tx to live in. We will likely be in the home at least 5 years. We are thinking of adding a backyard pod ($50k to build, permit, etc) as another office. Doing some rough math here, we would be paying $580/soft for the $1.25m home. With those numbers, can one estimate that a 200 sqft pod add $116k of present day value? 

Thanks in advance!

[Ryan Kelly]

@Brian M. Buyers don’t think like that. They won’t care at all what you paid for it. They will compare all homes available in their price range and determine what THEY feel a backyard Pod is worth to THEM. Some may see a value add, others will see a glorified shed. It could add some value if done well, but not likely equivalent to what you will pay for it.