diff --git a/Makefile.inc1 b/Makefile.inc1
index 9a29abaca1fe..2c7b403db43b 100644
--- a/Makefile.inc1
+++ b/Makefile.inc1
@@ -245,6 +245,17 @@ X${BINUTIL}?=	${${BINUTIL}}
 SUBDIR=	${SUBDIR_OVERRIDE}
 .else
 SUBDIR=	lib libexec
+# Add LOCAL_LIB_DIRS, but only if they will not be picked up as a SUBDIR
+# of a LOCAL_DIRS directory.  This allows LOCAL_DIRS=foo and
+# LOCAL_LIB_DIRS=foo/lib to behave as expected.
+.for _DIR in ${LOCAL_DIRS:M*/} ${LOCAL_DIRS:N*/:S|$|/|}
+_REDUNDANT_LIB_DIRS+=    ${LOCAL_LIB_DIRS:M${_DIR}*}
+.endfor
+.for _DIR in ${LOCAL_LIB_DIRS}
+.if ${_DIR} == ".WAIT" || (empty(_REDUNDANT_LIB_DIRS:M${_DIR}) && exists(${.CURDIR}/${_DIR}/Makefile))
+SUBDIR+=	${_DIR}
+.endif
+.endfor
 .if !defined(NO_ROOT) && (make(installworld) || make(install))
 # Ensure libraries are installed before progressing.
 SUBDIR+=.WAIT
@@ -283,17 +294,6 @@ SUBDIR+=	tests
 SUBDIR+=	${_DIR}
 .endif
 .endfor
-# Add LOCAL_LIB_DIRS, but only if they will not be picked up as a SUBDIR
-# of a LOCAL_DIRS directory.  This allows LOCAL_DIRS=foo and
-# LOCAL_LIB_DIRS=foo/lib to behave as expected.
-.for _DIR in ${LOCAL_DIRS:M*/} ${LOCAL_DIRS:N*/:S|$|/|}
-_REDUNDANT_LIB_DIRS+=    ${LOCAL_LIB_DIRS:M${_DIR}*}
-.endfor
-.for _DIR in ${LOCAL_LIB_DIRS}
-.if ${_DIR} == ".WAIT" || (empty(_REDUNDANT_LIB_DIRS:M${_DIR}) && exists(${.CURDIR}/${_DIR}/Makefile))
-SUBDIR+=	${_DIR}
-.endif
-.endfor
 
 # We must do etc/ last as it hooks into building the man whatis file
 # by calling 'makedb' in share/man.  This is only relevant for