How much does a shop build add to property value?

[Jim Becker]

Good idea - except my wife might get a little annoyed at a much longer commute to her job

She's also be annoyed at the cost...it's kinda a sad situation because the folks who bought the property (a local neighbor) did so to rehab the home that was on the land and resell it. Unfortunately, they did not look carefully enough at the condition of the home. (really sad because the guy is an experienced builder but let his desire to help the neighborhood cloud his eyesight) Since it was an "as is" sale, they were then stuck with a building that couldn't be salvaged due to excessive water damage, mold and some significant structural issues. Oh, and a layer of asbestos in the paster. They bought for a low price, but the cost to remediate the asbestos (even doing the labor themselves) was "yuge" and the cost to demolish the structure, haul off the 'stuff' and then regrade the property to presentable was considerable. I helped with the land work and with a little of the pre-demolition. I don't believe anyone would just come off the street and buy the lot for what they have to ask for it to break even, so it will have to be a "build to suit" to ultimately sell it. The guy, while being a great builder, has some major health issues so that's not going to happen anytime soon. Meanwhile...I have a lovely .375 acre lawn next door to my own half acre that I mow and keep in a park-like condition.

[Justin Rapp]

She's also be annoyed at the cost...it's kinda a sad situation because the folks who bought the property (a local neighbor) did so to rehab the home that was on the land and resell it. Unfortunately, they did not look carefully enough at the condition of the home. (really sad because the guy is an experienced builder but let his desire to help the neighborhood cloud his eyesight) Since it was an "as is" sale, they were then stuck with a building that couldn't be salvaged due to excessive water damage, mold and some significant structural issues. Oh, and a layer of asbestos in the paster. They bought for a low price, but the cost to remediate the asbestos (even doing the labor themselves) was "yuge" and the cost to demolish the structure, haul off the 'stuff' and then regrade the property to presentable was considerable. I helped with the land work and with a little of the pre-demolition. I don't believe anyone would just come off the street and buy the lot for what they have to ask for it to break even, so it will have to be a "build to suit" to ultimately sell it. The guy, while being a great builder, has some major health issues so that's not going to happen anytime soon. Meanwhile...I have a lovely .375 acre lawn next door to my own half acre that I mow and keep in a park-like condition.

Well it's great to have the extra land next to you until it's bought and built on, and you don't need to even pay the taxes for it. I actually suspect the taxes where you are are about 1/2 what I pay. The actual cost of the land/house would most likely be comparable +/- a bit from where I am in Central NJ. I almost fell on the floor when i saw a few houses sell in our neighborhood. They are closing in on 3 times what I paid for it my house in 2002.

[Jim Becker]

Well it's great to have the extra land next to you until it's bought and built on, and you don't need to even pay the taxes for it. I actually suspect the taxes where you are are about 1/2 what I pay. The actual cost of the land/house would most likely be comparable +/- a bit from where I am in Central NJ. I almost fell on the floor when i saw a few houses sell in our neighborhood. They are closing in on 3 times what I paid for it my house in 2002.

I seriously doubt that it will be built on for a very long time...and I'm fine with that. And if I won the lottery, I'd buy it to insure that, too. My taxes are higher here than at the larger property over in Buckingham, but at about $8K, are likely less than many areas of NJ. Yea, the price of RE is up there. I wish I would have gotten the appreciation we expected at the old property, but alas, it was too unique and took a long time to find a buyer. It is what it is. and there's a nice young family there now.

[Justin Rapp]

I seriously doubt that it will be built on for a very long time...and I'm fine with that. And if I won the lottery, I'd buy it to insure that, too. My taxes are higher here than at the larger property over in Buckingham, but at about $8K, are likely less than many areas of NJ. Yea, the price of RE is up there. I wish I would have gotten the appreciation we expected at the old property, but alas, it was too unique and took a long time to find a buyer. It is what it is. and there's a nice young family there now.

Yup - my property taxes are almost double yours, approaching 15K a year now, even though the median home price sale in Feb 2024 between Middlesex Country, NJ and Bucks County PA is very close (8% difference). So even though it would cost me about the same to buy a house in Buck County, I could save a ton each year on property tax, but sure will have an angry wife that needs to commute an extra 40 minutes. And well, my commute when i need to go up to my office in Bridgewater would be sorta the same. However the cost to move will take a bunch of years to recover with the potential tax savings, and hopefully in 10 to 12 years or so from now we will kiss the garden state goodbye and move somewhere much more cost effective. And one with a nice big shop not in the basement

[Maurice Mcmurry]

My wife's family home in Boston just hit the market. My old micro shop in the basement did not even get an image or a mention in the listing. Step mom is selling the house with out Wife and BIL's consent or involvement : (

https://www.compass.com/listing/well...5897432470161/

[Curt Harms]

I seriously doubt that it will be built on for a very long time...and I'm fine with that. And if I won the lottery, I'd buy it to insure that, too. My taxes are higher here than at the larger property over in Buckingham, but at about $8K, are likely less than many areas of NJ. Yea, the price of RE is up there.

When I first moved to this area in the mid-late '80s SWMBO Real Estate Broker was showing me listing books (well before online stuff). I was looking at properties in Hunterdon County NJ and there were what looked like very nice properties for some very nice prices. When I remarked on this she said "look at the taxes". HOLY COW!! I can only imagine today. I own a 1500 sq.ft. townhouse, my brother in Wisconsin owns about 160 acres with single family home and outbuildings. We pay about the same in property taxes.

[Jim Becker]

Curt, my taxes here at the new place near DelVal at a hair more than half the square footage and a half acre vs 4 acres at the old place in Buckingham is about the same. Things in truly rural areas are a lot different as you note.

[Maurice Mcmurry]

Taxes at our woodlot in Howard County MO have gone up from $30 to $40 over the last 7 years. I put up a 12 x 40 tractor shed in 2018. The assessor has not added any improvements to our assessment yet. In Columbia MO the tax assessors office follows up on any building permit application within a few days. I warn my clients that the assessors agent will be right on the heels of the building inspector.