diff --git a/source/common/searchpaths.cpp b/source/common/searchpaths.cpp
index 88e504e97..0f06bc10d 100644
--- a/source/common/searchpaths.cpp
+++ b/source/common/searchpaths.cpp
@@ -202,6 +202,13 @@ TArray<FString> CollectSearchPaths()
 		{
 			if (stricmp(key, "Path") == 0)
 			{
+				// Checking Steam via a list entry allows easy removal if not wanted.
+				if (stricmp(value, "$STEAM") == 0)
+				{
+					G_AddExternalSearchPaths(searchpaths);
+					continue;
+				}
+
 				FString nice = NicePath(value);
 				if (nice.Len() > 0)
 				{
@@ -213,11 +220,6 @@ TArray<FString> CollectSearchPaths()
 					{
 						CollectSubdirectories(searchpaths, nice);
 					}
-					// Checking Steam via a list entry allows easy removal if not wanted.
-					else if (nice.CompareNoCase("$STEAM") == 0)
-					{
-						G_AddExternalSearchPaths(searchpaths);
-					}
 					else
 					{
 						AddSearchPath(searchpaths, nice);