Historic homes (generally defined as being more than 50 Years old) can have a lot of character, particularly compared to many homes being constructed today. But while they may have unique features and one-of-a-kind style, these properties can also come with significant challenges.
Are you eyeing a house built more than half a century ago? Consider the pros and cons of historic homes before making an offer.
Pros:
- You’ll have a unique home. Historic homes were built with a less-standardized approach than today’s houses are, and they often have character from years of residents who made the home their own.
- You may qualify for new tax deductions. There are federal, state and local tax incentives available for those who preserve historic properties.
- You may get a better return on your investment. Homes in historic districts tend to hold (and grow) their value because they’re often located in established communities.
- You’re helping to preserve history. By purchasing and caring for or restoring a historic home, you’re keeping a piece of history intact for future generations.
Cons:
- It may be harder to get a mortgage and insurance policy. If the home is in poor condition, it may not get approved for traditional financing. Insurers may also be more hesitant to cover the property.
- It will likely need more work. You will probably face more repairs and may need to make more renovations before moving in.
- There may be strict regulations on the property. This holds especially true if the home has been designated as historic by the local government.
- You may have to make sacrifices. Historic homes may not have all the modern features you’re used to (or even the foundation to add them). You might find yourself making trade-offs.
Reach out if you want help finding your next property — historic or otherwise.
