Four Things To Know Before You Buy a Historic Home

Congratulations, you have decided to buy an historical home. It is one-of-a-kind, full of character, and an architectural dream. However, before you sign for the mortgage, there are a few important things you need to consider. Here are four pieces of advice:

Be sure you have a cash reserve.

Historic homes, whether they are Greek Revivals, Victorian, or Craftsman Bungalows, are lovely, but by definition they are older than most homes. This means they may have significant structural or mechanical problems, and the purchase price of the home is only the beginning of its true cost. Be prepared to put money into upgrading windows, HVAC, electrical, or plumbing systems above and beyond the purchase price.

Determine what type of historical designation this home has.

A home may be on National Register of Historic Places, or have a local/state historic designation. Each type of designation carries its own restrictions and set of rules governing remodeling, and often you will not be allowed build an addition or replace certain architectural details. Check with your local board to determine what you can and can’t do. Replacing windows, siding, or the roof with in-kind historical materials may be more expensive and time consuming than you thought.

Get a complete home inspection.

Older homes may have serious structural problems that don’t show up to the average homeowner. In addition to a qualified home inspector, be sure a structural engineer is also consulted. Old homes can have unique problems such as asbestos siding, which is a health hazard, or balloon framing, which is a fire hazard. Get estimates on repairs so you will know if you can afford the necessary reconstruction before going into the project. If the structural problems are too significant, your dream home may become a money pit.

Check on upkeep costs, including taxes and utilities.

An expert from Molisse Realty Group recommends getting a copy of last year’s utility bills and property taxes for any historic home you consider to get an idea of the actual, day-to-day cost of owning it. Property taxes in historic neighborhoods may be higher than surrounding neighborhoods, and an old home may be energy inefficient. On the bright side, look for tax incentives for restoring your home to its former glory. You have to apply for these credits or benefits, but they may be a real asset as you make home repairs.

Now you have done your homework and are ready to take on ownership of an historic home. Be prepared to spend more than you expected, and for remodeling to take longer than you thought possible. The end result will be the house of your dreams, a place to proudly call home.