SHOUSE: SHOP, HOUSE
New to the real estate world is the “shouse”. A shouse is a cross between a house and a shop. These tend to be a smaller house plan with a large shop. Shouses are popping up over the countryside and making an interesting market- with some challenges as well.
Right now the shouse market is small but growing. There are a great many advantages to building a shouse, but because this is a brand new type of housing market, there are a few hurdles unique to selling or buying a shouse.
WHY BUILD A SHOUSE?
Shouses, as rule of thumb, are generally built because they can be built quickly, have a simple open concept layout, and therefore tend to be cheaper. The shouse owner generally has more interest in the “shop” portion of the shouse because of his/her interests.
Some popular shouses are built on farms and house machinery, are designed for hunting retreats and all their sporting toys, and gear. Shouses serve as backwoods vacation escapes as well. All having separate living quarters that are very simple.
SPECIALIZED REAL ESTATE MARKET
Shouses are a specialized real estate market. You won’t find shouses in residential areas in cities or towns. They are definitely rural. Check out these links for some beautiful shouse pictures:
However, there are some VERY NICE shouses that have beautiful living quarters inside, and that would be where your money increases and the style of the house becomes more important than the shop.
Check out Morton Buildings for some additional pictures and a cost calculator on building a shouse or barndominium.
THE ADVANTAGE
A simple shouse has the advantage of:
- being a quicker build as opposed to a stick-built home
- they serve more than one purpose: home and business
- spacious living quarters
- eco friendly
- cheaper to build
THE DISADVANTAGE
The possible disadvantage comes in for you the seller when you want to sell the shouse. This means it brings a possible disadvantage to the buyer of a shouse as well. There are several important factors when selling or buying a shouse. Let’s take a look at these few important factors.
Because of the specialized nature of a shouse and being “new” to the real estate scene, you may find it difficult obtaining an appraisal. In order to have an appraisal done, you must have a “comp” to compare it with.
This comp (comparable property) needs to be located in the area you currently live in. The specialized nature of a shouse may make it VERY difficult to find one near you, much less one that has sold. Finding something comparable out of your area will not work.
BUYING A SHOUSE
As someone looking to buy a shouse, you will need to contact your bank and get pre-approval. If you’re a first time home buyer, buying a shouse may be challenge. You may encounter FHA, HUD, Veteran Loans restrictions or requirements which may make purchasing the shouse a challenge. You may need to look into acquiring “cash” from other sources like family.
Along with a bank pre-approval, your bank may require:
- Higher down payment percentage
- The bank may charge a higher financing rate with a shorter payback schedule- which means higher monthly payments for you.
Whatever your case may be, keeping within your pre-approval budget and knowing these factors ahead of time will prevent disappointment.
We at UC Midwest Lifestyle Properties keep our clients well informed when it comes to buying and selling. New and unique designs and trends allow us to have a vibrant portfolio of properties for our clients to choose from.
As shouses and barndominiums gain popularity throughout your area so will grow the sales and comparables. Therefore residential lending will find it easier and easier to do appraisals and the rates and terms for shouses and barndominiums will become a normal part or residential lending. We look forward to working with you to find your perfect home.
