I am in the Midwest on about 30 acres. It is a high end neighborhood. Home values are similar to what you mention. I would absolutely not pay more for a property with an outbuilding. Still will have a minimal value, and actually, if not well done may hurt the value. Also consider that many people that can afford a 700K house will pay others to do maintenance and not need the equipment.

in our subdivision most homes have a "shop" or building of some kind most are quite large (up to 2400 square feet) and most are heated and airconditioned with "indoor plumbing". lots in our subdivision are 1-5 acres, much smaller than yours. I couldn't tell you how they are valued, but we wouldn't get what we paid to build our building out of it, maybe 50 to75 percent value. We've had 3 homes with buildings in this area and i believe they've all sold quickly due to the outbuildings....With acreage like yours, i would expect some type of outbuilding...

Who in their right mind would buy a house on 12 acres without some kind of outbuilding for equipment storage? I'm on only 3 acres, and the pole barn I have is a Godsend. It's got nothing to do with adding to or subtracting from the value of the property and everything to do with the issues involved in maintaining a property.

In our area outbuildings, even the nice ones with finished, conditioned areas, add only minimally to home values. We live in a rural area with lots of ranches, orchards, farms. Outbuildings are expected more than a bonus, We did find, though, while house hunting the last few years that properties with decent pole barns or shops sold much faster than those without.

When we we bought our property it had a small 12x14 shed and a 2 stall "barn" or lean-to with a feed area next to our pastures that we've already beefed up. We're hoping to get a bigger shop built next year for livestock and construction equipment. We know the only value we may get out of it in the end will be our own satisfaction with using it, but we need one, so there you go.

In general, I look at your outbuilding plans as folly- unless you are dead certain what the largest group of buyers would be looking for. Me? I look at a country property (and I am) with a whole bunch of crap I don't need? All I see is demo/re-do.

I don't know your market, but there are surely local Realtors who do. Why ask a question of a random audience, when you could go to a pro for advice?

We built our home on 30 acres 4 years ago and also added a 32'x48' shop with an office area (my man cave) that has HVAC and full bath. I'm pretty sure that I won't get my complete cost out of it when I sell but couldn't do without my shop.

Like others have said, real estate “rules” are local, you’d really need to ask a local realtor. I lived in a rural county where a man-cave type outbuilding was expected. When selling my cabin on ten acres, my realtor said he wished my property had one/ people expect it for the area and factoring out other flaws, they sell faster when they have one. Even though I had no typical lawn maintenance, ten acres of wooded steep land- people want space for ATVs, log splitters, and dozens of other country life enhancers. In my particular area, women liked having a place for the men to congregate outside the actual house lol.

Having said that, building one just for immediate resale was ludicrous, and no, my realtor did not suggest putting one up either. It did sell eventually: a bit longer than average. Build one if you-yourself want and need one and plan to live there more than a short time. But don’t expect to make that money back either.

Exactly what Homechef says...

Do garages add more value to the property than barns?

Again, you have to know what kind of barn vs. garage. A house with no garage will valuate less than a comp with a garage.

Oh, I was talking about additional 4-5 car garages vs a pole barn. Didn’t mean a house with a garage. We have checked out country properties with old wooden barns, pole barns (farms, horse farms) before, out buildings make property tax higher here in NY, but they’re a huge plus for buyers. I’d think extra 4-5 garages would add on more value than a pole barn, but I am not sure. That’s why I was asking. We ended up with a property that has a lot of garages, but I do want to have a pole barn someday.

There is value and then there is agricultural value. Depending on how your county does their evaluations if part of your land is listed as agricultural out buildings on it are valued as agricultural which can be a lower tax basis. I realize that you are probably thinking resale value so a nice looking building is a must no matter what they are used for. All outbuildings will raise the evaluation some for tax purposes but it will depend on the usage.

It won’t add much value to add it. Certainly not even close to what it costs. But if everyone else has one and you don’t, it will sure subtract value because your house is not up to neighborhood norms. Decide which is the worst money loser, and do the other. My guess is doing nothing and taking the financial hit will be the way to go.

The OP mentioned he really needed a building to store equipments. Since he owns a business, he could just build a nice looking pole barn and report it as business expense. Are there any Amish people nearby? They build good quality buildings and are not expensive.