Have you ever dreamed of owning a historic home with endless charm, architectural detail, and walls that speak of times untold? Well, you are not alone. As agents, we are often asked from our buyer clients whether or not a historic home is a wise investment. While this is generally a loaded question, we shift our response to the many different scenarios that come into play when choosing a historic home. More often than not, our answer will most likely turn into a slew of questions directed toward our client and the sellers of said property. To name a few, CONDITION, LOCATION, BUDGET and FINANCING are top of mind when considering a purchase of a historic property. In addition, it’s important to consider your lifestyle and skill set. Have you ever heard the saying “labor of love”? Well, owning a historic home requires just that: skill, dedication and constant upkeep. Basically, if you enjoy spending your weekends vacationing, purchasing a home with less years and minimal upkeep may be your best bet.
Condition: This may be the most important element when considering a historic property purchase. Upon entering the home, you should go armed with an agent who is versed in old homes, construction and experience. You’ll want to begin in the the basement. Look at the foundation, support beams, posts and sills. Do you see signs of pest or termite damage? How about the foundation? Is It brick, field stone or granite? Now look at the electrical, has the panel been updated? Do you see old wiring or even older, knob and tube wiring? Now, check out the pipes and septic line. Are they wrapped in possible asbestos? Are they cast iron? If so, does the pipe appear to have pin holes? That’s typically indicative of a pipe that needs replacement. How is the home heated? If oil, how old is the oil tank, and how about the furnace?
Are you bored yet? I could go on an on with the questions to take into consideration when viewing an old home. As you can see, there are many factors to take into account when discussing condition. From the Basement to the attic to the roof and the chimney, old homes require careful attention upon considering an offer to purchase. While Realtors are not licensed home inspectors, a skilled agent can give you an indication as to whether or not your hopeful next historic home is worth writing an offer and paying for an inspection. Bottom line, the condition, the structure and the mechanics of an old home are essential items to consider when making an offer. Your agent and your home inspector will be able to guide you in the proper direction when making an educated decision.
Location: So you’ve found the house of your dreams and you’ve investigated both the interior and exterior of the property. However, you can’t help but wonder if the location of said property will make this a solid long term investment.
While location is really dependent on personal preference, you may want to consider the existing zoning for the home as this may impact the resale value. Is it residential? Residential Business? Or, Commercial? It is not uncommon to see antique homes situated in a downtown setting with a postage stamp sized lot and neighboring businesses only steps away. Alternatively, you may find a historic farm house situated in a country setting that is zoned agricultural. In some scenarios, you’ll find your desired property is located in a specified “historic district”. Rest assured, this label will ensure all of your neighbors fall in line with a specific set of design guidelines when it comes to the exterior. Have questions about the design guidelines and restrictions? Have your agent contact the local historic district commission for further information. Either way, your agent should do some research prior to your purchase to ensure the area meets your desired location and zoning criteria.
Budget and financing: As you begin to shop for your preferred antique home, you’ll notice a difference in cost compared to newer homes. Most informed listing and buyer agents are going to value antique homes with other similar aged homes. That being said, antique homes are typically valued all within the same group or class with positive and negative adjustments being made based on condition, updates, renovations, and square footage. You may find that you can afford much more square footage on a home built in 1900 versus a home built in 2000. Just remember to consider all aspects of condition and required basic upkeep before making an offer. Your buyers agent, which you should have, will help you determine the value when considering your purchase. When it comes to financing, you’ll want to discuss the home in detail with your lender to determine whether or not the property qualifies for a conventional loan, FHA style financing, or a rehab loan. Ultimately, your lender will determine which style financing is the best fit for both you and the property itself.
As you can see from this brief article, there are many factors to take into consideration when discussing a possible purchase of an older home or historic home. At CHR all of our agents are trained to recognize both the structural characteristic and the superficial characteristics of an older home. We hope you consider contacting one of our talented and trained CHR Realtors to help guide you through one of life’s most important investments, purchasing a home.