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!