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There is a small shed in the backyard of this property I currently am fixing up. It is about maybe 10 x 8 feet. It is a decent size and sits in the corner of the property up against the fencing. The backyard itself is a decent size as well, the property itself in total is about half an acre. 

I was considering taking it down since it would need repairs but my brother-in-law told me that I would be better off fixing it up and keeping it since the lawn is on the larger side and the garage is only a one and a half car space.

Thoughts on this?

Given the yard space, I would say to keep it. You don't need to fully fix it up to look new. Sheds can be older and rustic looking and still appeal to people who want that extra storage space. Just check it for leaks, termites, and other issues and fix those first. You can slap on some new paint after that. If the place is infested with something, you might end up needing to take it down so be sure to start there first.

I would leave it. 

Like mentioned, you can check for infestations and patch it up but outside of that, just let it be. A lot of people looking to buy homes want to acquire one with extra storage space. Even if they don't need it or want it, it can be easily taken down and scrapped or even sold.