Let’s talk about one of Idaho’s favorite home features:
THE SHOP.
Heated. Insulated. Oversized doors. RV parking. Room for the boat, side-by-side, tools, and all the Idaho toys.
For many buyers looking at homes with acreage in Idaho, a large shop or detached outbuilding can be a major selling point. You see it and immediately start figuring out where everything is going.
But before you pay a big premium for an Idaho property because of the shop, there’s something important to understand:
The appraiser still has to support its value.
A seller may have spent $100,000 building an incredible shop, but that doesn’t automatically mean the shop adds $100,000 to the home’s appraised value.
How Are Shops Valued on an Idaho Home Appraisal?
An appraiser looks at the property as a whole and uses comparable sales in the surrounding market to help determine value.
That’s where unique properties can get tricky.
In areas where homes with similar shops, acreage, or outbuildings are common, comparable sales may be available to support the value. But in some rural Idaho real estate markets, finding recent comparable homes with similar improvements can be more challenging.
The Shop Itself Can Raise Other Questions
Value isn’t the only thing your lender or appraiser may need to consider. Depending on the property, we may also need to understand:
- Is it considered a garage, shop, agricultural building, or commercial-type structure?
- Is there finished or unfinished living space inside?
- How is the building currently being used?
- Is that use consistent with a residential property?
- Were permits required for the structure or improvements?
- If permits were required, were they obtained?
- Are there any features that could affect the property’s eligibility for the selected loan program?
None of these automatically mean NO.
They mean we want to know what we’re dealing with before we’re deep into the transaction.
Buying Idaho Tip: Love the shop, but don’t assume dollar-for-dollar value.
If you’re considering an Idaho home with a large shop, acreage, or another unique feature, get your lender involved early. This can help identify potential appraisal or financing questions before they become expensive surprises.
Looking at a unique property in Idaho? Send it my way. I’m happy to take an early look and help you understand what financing questions we may want to ask before you move forward.
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