What to consider before purchasing a historic home

by Erik J. Martin

ere is a big reason why antiques, artifacts and rare treasures go on the auction block for big money: Collectors want to own a piece of history and a coveted possession that’s one-ofa-kind. e same can be true of homes – specifically, historic homes, which are residences with a unique architectural design, age or historical significance that sets them apart from modern dwellings. Even though they were built long ago, historic homes come with a high price and high prestige.

“To qualify as a historic home, the property must be listed on a local or state historic register,” explains Shaun Martin, a business owner, real estate professional, land developer and investment advisor in Denver. “Historic homes often have unique design elements like original stonework, detailed woodwork, stained glass windows, intricate ironwork and more. ey are typically older properties built before 1940, which allows them to retain their historical charm and craftsmanship that is rarely found in newer homes.”

Many of these abodes have been well-preserved and updated over the decades, allowing their owners to enjoy modern features and conveniences without compromising on their distinctive original details.

“Historic homes can also come with a sense of community pride in connection to the past that you don’t typically find in more modern properties,” adds Martin.

Matt Tasgin, a real estate investor with Pegasus Home Buyers in Revere, Massachusetts, notes that historic homes come with several advantages.

“ ey offer aesthetic appeal and that they feature distinctive architecture and craftsmanship. ey can also provide tax benefits, as owners of historic homes may be eligible for tax incentives if they maintain and preserve the property according to local and federal guidelines.

In addition, owning a historic home allows individuals to contribute to the preservation of a community’s heritage,” he says.

Eric Bramlett, a Realtor in Austin, Texas, says one of the biggest reasons why buyers purchase historic homes is their return on investment.

“In many cases, historic homes are located in established neighborhoods that have retained their charm over the years. is, combined with the distinctive character of the property itself can lead to increased value and potential appreciation over time,” says Bramlett. On the downside, purchasing and owning a historic home will involve serious upkeep and repairs. at’s because an older residence like this usually has materials and systems that need to be inspected, maintained and fixed if necessary. Also, owners could be subject to strict guidelines governing alterations and renovations. In other words, you probably won’t be allowed to thoroughly modernize a historic home or substantially change its architectural style. e cost of a historic home can vary significantly, depending on factors like its condition, location and historical significance.

“For example, consider how historic homes may not be as energy efficient as newer constructions, given their older windows, insulation and heating systems. Upgrading these elements to improve efficiency can be challenging, especially when trying to maintain the home’s original character,” Bramlett cautions. Furthermore, it could be more costly to get a homeowners insurance policy for a historic home due to its unique qualities and higher value.

“On average, historic homes are typically 10 to 15 percent more expensive than comparable non-historic homes in similar locations – possibly much higher depending on the area and condition,” says Martin. Good candidates for acquiring a historic home are buyers who appreciate the distinctive charm and workmanship of older homes, have the resources and time to dedicate to maintenance and are willing to abide by local regulations and rules regarding the property.

“Historic homes are usually listed for sale like non-historic homes, appearing on multiple listing services and real estate websites,” says Tasgin. “But buyers interested in historic properties may also want to explore resources like preservation societies, local historical commissions and specialized real estate agents who focus on historic homes.”