{"id":34401,"date":"2019-11-20T16:59:34","date_gmt":"2019-11-20T21:59:34","guid":{"rendered":"https:\/\/bhgrealestateblog.com\/?p=34401"},"modified":"2024-12-30T11:03:28","modified_gmt":"2024-12-30T16:03:28","slug":"buying-a-historic-home","status":"publish","type":"post","link":"https:\/\/bhgrecareer.com\/bebetterblog\/buying-a-historic-home\/","title":{"rendered":"Seven Facts to Tell Clients About Buying a Historic Home"},"content":{"rendered":"\n

The fusion of past and present come together\nbeautifully in older homes. Helping clients find a\nhouse with a rich history can be a challenge. Once there are one or more\nprospects, it’s time to discuss specifics about buying old homes. Consider\nthese seven facts every agent should tell clients about buying a historic home.<\/p>\n\n\n\n

Residing in a Historic District<\/h4>\n\n\n\n

Most older homes are in a village or historic\ndistrict built before all the other houses in the area. Typically, the historic\ndistrict maintains a constant property value and often offers amenities such as\na local community organization dedicated to preserving the integrity of the\ncity. Plus, these areas usually include shops, restaurants, churches, and other\npopular venues.<\/p>\n\n\n\n

While there are definite benefits associated with\nliving in a historic area, there are also potential restrictions. All the\nhouses in a landmark area face the same limitations, such as only using\nspecific color paint and window types. State and local governments establish\nthe criteria and constraints for historic homes. In some regions, homeowners\nmust apply to proceed with any renovations to the house, even if they are\nminor.<\/p>\n\n\n\n

National Historic Criteria<\/h4>\n\n\n\n

State and local registries establish historic\nrestrictions in these older districts. The goal is to maintain the historical\nfeel of the area by assessing time-specific features and ensuring they exist at\neach property. For example, all of the homes might have square windows with\nblack shutters. It would be likely homeowners could not paint these shutters\npurple.<\/p>\n\n\n\n

A district listed solely on the National Register of\nHistoric Places does not face any restrictions. Before clients decide to buy a\nhistoric home, find out if it has a historic preservation easement. In some\ninstances, payment must be made to a government agency to hold this historic\neasement that dictates the restrictions homeowners must follow. Inquire if a\nfederal tax deduction is available for those who hold an easement.<\/p>\n\n\n\n

Be Prepared for the Cost of Renovations<\/h4>\n\n\n\n

Maintaining historic integrity can become expensive\nfor unsuspecting property owners. Clients should be prepared for the\npotentially high cost of renovations, especially if specific parts or colors\nare required. Adhering to historical restrictions can become costly. Homeowners\nshould be ready to spend extra money on simple repairs.<\/p>\n\n\n\n

Buying a historic home that needs a lot of work can\nadd up to a large renovation bill. Without a solid income and savings, property\nowners could find themselves struggling to keep up with repairs. One way to\noffset the cost of renovation is to find out if the state offers tax programs\nor grants for homeowners making updates to older properties.<\/p>\n\n\n\n

Securing Insurance<\/h4>\n\n\n\n

With the substantial cost of renovation in mind, it\ncan be tough to find the right insurance for historic homes. A general policy\nmay not account for the increased costs associated with repairing an older\nhouse, especially if there are restrictions. When there are no restrictions,\nthe price of insurance might be lower. Shopping around is crucial to get the\nright level of coverage at a competitive rate.<\/p>\n\n\n\n

Insurance should cover renovations, replacements,\nand damages. A video of a historic\nhome<\/a> is an\nexcellent marketing tool for agents that can later be used by the buyers to\nshow the uniqueness of the home to insurance providers.<\/p>\n\n\n\n

Limited Space and Use<\/h4>\n\n\n\n

Historic homes were built decades ago with a\nlifestyle in mind. These habits have changed with the times, which means the\nlayout could be outdated. Often older homes have smaller rooms, winding\nhallways, and fewer open spaces. As a result, the smart use of space could be\nimpossible, and some modern updates may not fit into the living areas.<\/p>\n\n\n\n

Plus, it could be against the legal restrictions to\nbuild an addition to a historic house. Buyers will not be able to add a floor\nor room to accommodate a growing family or home business. Clients should be\naware they will be limited on how much space they have, as expansion is usually\nimpossible.<\/p>\n\n\n\n

Financing Challenges<\/h4>\n\n\n\n

If a historic house requires extensive repairs, a\ntraditional loan might not be an option. Creative financing options are\navailable, depending on the condition of the house and the buyers’ financial\nsituation. For example, a private HUD loan can cover small renovations. Other\nrehab loans may also be available, including a 203K and a Fannie Mae renovation\nmortgage.<\/p>\n\n\n\n

Agents working<\/a> in a historic area should\nmaintain a list of go-to resources for historic home buyers. Include lenders,\ninsurance providers, contractors, and attorneys who understand the devil is in\nthe details when it comes to owning, repairing, maintaining, financing, and\ninsuring historic properties.<\/p>\n\n\n\n

Consider Energy Efficiency<\/h4>\n\n\n\n

Going green is a modern mantra that had little\nmeaning one hundred years ago. With the advent of industry and technology came\na host of other concerns, including the cost of providing utilities to a home.\nPoor insulation, outdated electrical systems, and drafty windows are all ways\nenergy gets wasted. But since some renovations are restricted or impermissible,\nmaking energy-efficient updates could be a challenge.<\/p>\n\n\n\n

Over time, historic homes have enjoyed tech-inspired\nupdates. Property owners must be prepared to petition for essential changes,\nwait to get results and pay the cost of utilities in the meantime until green\nchanges can be initiated. Affiliated Better Homes and Gardens\u00ae Real Estate\nagents can often pass on cost savings<\/a> to their clients for storage,\nprotection, and other property services.\n\nHelping clients find a house with a story is a sure way to be\nremembered and recommended. When clients are determined about buying a historic home, be the voice of information\nand reason every step of the way to ensure they are ready for the experience.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"

The team at Better Homes and Gardens\u00ae Real Estate shares seven important facts to tell clients about buying a historic home & how to find a house that fits their criteria.<\/p>\n","protected":false},"author":181,"featured_media":34421,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,181],"tags":[6571,8171,18471],"class_list":["post-34401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-client-tips","category-real-estate","tag-buying-tips","tag-client-tips","tag-historic-home"],"yoast_head":"\nBuying a Historic Home | Better Homes and Gardens\u00ae Real Estate<\/title>\n<meta name=\"description\" content=\"The team at Better Homes and Gardens\u00ae Real Estate shares seven important facts to tell clients about buying a historic home & how to find a house that fits their criteria.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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