Selling on 5, 10, or 20 acres near Chillicothe and wondering what your barn, shop, or sheds are really worth? You are not alone. Many sellers invest heavily in outbuildings, then find appraisals and financing do not treat them the way they expect. In this guide, you will learn how appraisers look at outbuildings, which Peoria County permits and tax details matter, and how to prepare so you protect your price and your timeline. Let’s dive in.
Chillicothe acreage market basics
Not all acreage buyers are the same. Some want privacy and a great home, others want a working shop, and a few value tillable or timber use. That is why value for barns or shops depends on what local buyers are paying for similar features. Strong pricing starts with recent comparable sales for both the home and the land uses.
For data and parcel details, use county resources and GIS tools to verify acreage, splits, and use history. The Tri-County Regional Planning Commission offers a helpful GIS maps gallery to review parcels and nearby context.
How appraisals treat outbuildings
Appraisers look for market evidence of what buyers pay for similar properties. They focus on the contributory value of each feature rather than what it cost you to build. Program rules also matter because lenders decide what counts as acceptable collateral.
- Conventional loans: Typical sheds or a detached garage can contribute value if local sales support it. Large farm-style improvements can signal agricultural use, which may limit eligibility for standard residential loans. See Fannie Mae’s property and appraisal guidance for how underwriters view significant outbuildings.
- FHA loans: Appraisers report on outbuildings and must call out safety or health issues. Unsafe structures can trigger repairs before closing. Review FHA appraisal guidance so you know what to expect.
What usually adds value
- A well-built garage or workshop with power, lighting, and a concrete floor.
- A clean, functional storage building that is typical for the area.
- Documented utilities and permits that show the space is usable and compliant.
What can complicate loans
- Large barns, riding arenas, or livestock facilities that look agricultural in nature.
- Unpermitted additions or structures with unknown construction.
- Outbuildings in poor condition that create safety or soundness concerns.
Permits, zoning, and access in Peoria County
Peoria County requires permits for many accessory structures. One-story detached accessory buildings used for storage and not exceeding 200 square feet are generally permit-exempt. Larger sheds, garages, and similar structures need permits and inspections. Review the county’s Residential Permits page and gather your records before listing.
If your property has a new or changed driveway connection to a county road, an entrance permit is required. Learn more through the Highway Department’s Permits information.
Zoning sets setbacks and allowed uses for outbuildings. If a structure was used for commercial or animal-related operations, confirm compliance with county staff or the city if you are within Chillicothe limits. Find contacts and guidance at Peoria County Planning & Zoning.
Taxes and assessment on mixed-use land
Illinois uses a productivity-based, or use-value, assessment for qualifying farmland. Mixed residential and agricultural parcels may be assessed in parts, and classification can affect your tax bill. Before you list, verify how your land and improvements are classified and taxed. For an overview, see this explainer on Illinois farmland property taxes, then confirm specifics with the Peoria County assessor.
Prep your buildings for appraisal
A clean, safe, well-documented property helps the appraisal and the loan. Focus on items that influence safety, soundness, and marketability.
- Structural and electrical: Large shops and barns benefit from a basic condition check. Appraisers and lenders look for safety and soundness, as highlighted in Fannie Mae’s Appraiser Update.
- Well and septic: Gather locations, age, and last service dates. FHA appraisals may look for separation distances and basic functionality. A quick primer on common checks is here: FHA property requirements.
- Permits and plans: Collect permits, final inspections, and any drawings for outbuildings and additions. Clear records reduce underwriting questions.
- Simple repairs: Fix obvious hazards, address roof leaks, secure loose wiring, and tidy debris. Small improvements often head off lender-required repairs.
Pricing and financing strategy
When outbuildings matter, build two comp sets. One should show residential value for the home itself. The second should show what buyers paid for similar acreage and improvements. If the market pays a premium for a heated shop or horse setup, you can price toward that buyer pool. If not, position the outbuildings as useful extras and prepare for limited contributory value.
Remember, not every loan program counts every structure. Standard conventional or FHA loans may discount large agricultural improvements. Some buyers may need a portfolio, agricultural, or specialty product. Share these distinctions early and point buyers to lenders who understand rural collateral. For context on how underwriters view significant farm-like improvements, review Fannie Mae’s guidance.
Pre-listing checklist
- Pull permits and final inspections for each outbuilding and addition.
- Verify parcel details, acreage splits, and access points with county records and regional GIS maps.
- Gather well and septic records, locations, and service dates.
- Photograph interiors of shops and barns, including utility panels and concrete floors.
- Repair visible safety issues and clean up work areas.
- Create a factsheet for each building: size, year, foundation, utilities, and permitted use.
- Prepare two sets of comps: residential and acreage plus outbuildings.
Work with a local guide
Selling acreage near Chillicothe is different from selling an in-town home. Careful prep, accurate positioning, and clean documentation can protect your value and keep financing on track. If you want a clear plan tailored to your property, connect with Carolyn Catton for local guidance and a polished, full-service marketing approach.
FAQs
How do appraisals in Chillicothe treat a pole barn?
- Appraisers assign value only if local sales show buyers pay for similar buildings, and some loan programs may limit value for agricultural-type structures.
Do I need a permit for my shed or garage in Peoria County?
- Sheds up to 200 square feet used for storage are often permit-exempt, while larger sheds and garages require permits and inspections per the county’s Residential Permits guidance.
Will a large barn affect my loan options on acreage?
- Yes, significant farm-like improvements can make a property look agricultural to underwriters, which may limit eligibility for standard conventional or FHA loans.
How are mixed-use parcels taxed in Illinois?
- Illinois may assess qualifying farmland on a use-value basis while assessing the residence and some improvements separately, so verify your classification with the county assessor.
What inspections help an FHA or conventional appraisal on acreage?
- Basic structural and electrical checks for large buildings, well and septic documentation, and proof of permits can smooth appraisal and underwriting reviews.
