Finding your dream home isn’t as easy as it sounds. It takes months of hard work, searching, and negotiating before you can finally step into it. Your dream house might have more than three rooms. Your dream house might have a swimming pool. Your dream house might be on the National Register of Historic Places, and you are buying a historic home.
Buying a historic home might not seem like a big deal as long as it fulfills your needs. But there are many things that you need to know before you do. Read below to learn everything you need to know about buying a historic home.
What is a Historic Home?
Every historic home is old, but not every old home is historic. There are specific conditions that the house has to meet before it called be called a historic house. Some of these conditions include:
- At least 50 years old
- The construction is the same as it was built
- It should have significance in impacting the country’s history through a person or an event.
Due to these conditions, you might not find many historic homes. However, that does not mean that there are none. Hence, there are several things you must be aware of when buying a historic home.
6 Things to Know Before Buying a Historic Home
While the broader specifications of buying a historic home do not differ much from buying a regular home, specific points should be kept in mind. YourYour final decision on buying a home depends on the following mentioned below.
1. Buying a Historic Home Gives a Greater ROI
The value of a historical home only increases as time goes on. While this is true for almost all real estate, the ROI offered by a historic home is greater than that of a regular house. Moreover, historic homes provide value stability, and you won’t have to worry about reselling. Additionally, historic homes tend to sell quicker than regular homes, as many more investors are looking for an opportunity to invest in a historic home.
2. Buying a Historic Home Gives You a Tax break.
The Federal Historic Preservation Tax Incentives program offers historic homeowners a 20% tax credit. However, the federal program has several requirements you might have to meet. You can still qualify for state or local tax breaks for owning a historic home.
You can ask your real estate agent at Robert DeFalco Realty whether you qualify for any sort of programs or what you need to qualify for them. In New York, you can get a 20% tax credit for qualified rehabilitation costs for your historic home.
3. Maintaining a historic Home Can Be More Costly.
In the past, homes weren’t built with the best materials. Hence, historic homes, given the quality of materials and their age, are prone to wear and tear. Thus, you might have to go for extensive and frequent repairs that can cost you more than renovating a regular home.
Moreover, certain materials used in historic homes can be pricy. For example, getting hardwood shutters for your home can be pricy. Additionally, you can not opt out of repairs due to certain hazardous materials, such as lead-based paint, that were commonly used in the past.
4. Renovations of a Historic Home are More Regulated
Historic homeowners are rarely allowed to add anything to the building. While upgrades might be permitted if it does not alter the structure, you might not get to add or break down anything.
You might not like the state having that much authority on what you can do in your home, but a historic home has limitations. However, you do not have to worry about additional interventions. While they might restrict you from doing something, they can7t make you do anything either. Hence, you will be under no obligation to restore, repair, or allow visitors into your property.
5. You Might Have to Pay More For Homeowner’s Insurance
Homeowner’s insurance is a vital thing to possess in case of emergencies like floods or fire. The cost you pay for your insurance varies significantly from home to home. In the case of historic homes, you might have to pay more than you would for regular homes.
The high cost is mainly because of the features of a historic home. These homes usually consist of solid wood doors and structures. The materials used in historic homes are often difficult to find and replace and require more skillful work and greater labor hours to get done. All these factors combined mean that your insurance might cost big bucks.
6. Financing a Historic Home Might be Difficult
Generally, looking for a loan to buy a home is a task. Getting a loan for a historic home might just make you want to pull out your hair. Since most mortgage providers consider loans to be an investment, they might be hesitant to finance a historic home due to its expensive upkeep and repair. However, that does not mean you might not get financing. Talk to your realtor to get some options for financing your historic home.
Tips on Preserving your Historic Home
If you own a historic home or are close to buying one, below are some tips to help preserve it.
- Schedule Regular Maintenance: older buildings require constant maintenance to avoid excess damage.
- Avoid Unneeded Repairs: since the materials for repairing are often costly for historic homes, avoid fixing anything that does not require it urgently.
- Avoid Changing the Interior: The charm of a historic home lies in its intricate design. While some might find these designs odd, they fit perfectly well with the historic home.
- Avoid replacing Plaster Walls: plaster walls were common in the past, but now they have been replaced with drywall. However, plaster walls are water-resistant and superior to drywall.
Get Help From a Professional When Buying a Historic Home
When buying a historic home, who you have to help you along the way can make a great deal of difference; you require someone reliable, has the proper knowledge and skills, and outs your needs above anything else. With these requirements in mind, Robert DeFalco Realty is the only one to turn to. With over 35 years in the real estate industry, professional and trained real estate agents, and the right customer-oriented mindset, Robert DeFalco realty can help you buy a historic house with every associated process.