Buying a Historic Home: What You Need to Know

Historic homes have captured the hearts of many a home buyer for centuries. These charming abodes truly are one-of-a-kind, full of history, intrigue, and Old World beauty. Buying a historic home does come with its own set of rules, however. Before you seal the deal on a vintage home purchase, consider these factors that come with owning one.

The Benefits of Buying Historic Homes

• Historic homes hold their value: According to the National Register, historic homes not only appreciate faster, but sell much quicker than the rest of the market. In a changing housing market, it’s good to know that a historic home will hold their property value in the long term.
• Tax incentives for historic homes: Owners of historic homes are eligible for a number of different tax breaks, endowments and grants at local, state and federal levels, meant to help offset some of the costs of maintaining an older home. Some of these include the Federal Historic Preservation Tax Incentives Program, state tax credits, and FHA loans among many others.
• Aesthetic beauty: Historic homes come with lots of character and fine artisan finishes that you don’t see in newer homes today. From stained glass windows and ornate scrollwork to mighty columns and old growth hardwood floors, historic homes come with those rare architectural features that make them so irresistible to homebuyers.
• Neighborhood Perks: Since most historic homes belong to historic districts, there are many restrictions and regulations in place to protect these areas from development. In addition, established neighborhoods tend to have lovely features like mature landscaping, great curb appeal, and tight-knit community values.

Restrictions That Come With Buying a Historic Home

• Renovation limitations: Preservation guidelines often prevent homeowners from making renovations on their historic home. If you’re looking to make an addition or add another story to your home, chances are, regulations will prevent you from doing so. Renovations of any kind will also require special permits, which can put a wrench in your plans.
• Added expenses: Historic homes come with their fare share of expenses. Older homes rack up higher utility bills, require more expensive construction materials, and need constant maintenance. If you’re not prepared financially for these added expenses, you may want to reconsider. Many of these homes also have older plumbing, heating and ventilation systems in place that may need repairs or updating. For more info on plumbing in historic homes, read our helpful guide.
• Higher Taxes: While historic homeowners enjoy tax benefits, many also face higher property taxes for living in a historic district or historic neighborhood. Savvy home buyers will know to budget in anticipation of higher than average tax rates. If you’ve done your homework, and your budget can accommodate it, owning a historic home can be an enjoyable experience.