If you envision yourself owning a home that stands out from other properties or boasts design details that are rare in modern properties, a historic home is a terrific option to consider.
There are a few things our real estate agents want buyers to know when considering historic homes to help them confirm that the property is right for their lifestyle and property needs. Here's what you need to know.
- A Property Must Meet Certain Criteria to Receive a Historic Classification
The historic home designation isn't arbitrarily used. Instead, the home must meet certain criteria to receive the historical classification. A home isn't a historic home just because it's old. To be called a historic home, the property must be a minimum of 50 years old. The overall structure must look the same as when the property was first constructed. It must also meet a qualification that proves the property is historically significant, like playing a role in a historical event, housing an important person or group, or using an architectural style that's historically significant.
- Historic Homes Often Experience Higher Than Average Appreciation
When compared to other homes in the area, historic homes usually appreciate in value at faster rates than other properties. This increase is driven in part by the limited stock of historic homes. Historic homes aren't as widely available as other home types, and this limited supply helps support higher home prices. People who purchase historic homes tend to hold onto them for years, a fact that further drives steady increases in the value of historic homes. If your home is located in a historic district, this may further boost your home's appreciation. Historic districts contain multiple historic properties that create a neighborhood with properties that are required to maintain a certain standard of appearance.
- Remodeling Plans Should Maintain the Home's Structural Integrity
Any remodeling that you complete must support the home's original design and structure. In many towns, renovations to historic homes must be approved by a local review board. It's usually fine to repair or even replace materials that are original to the home when necessary, but these repairs must support the property's historical appearance and, whenever possible, use materials that are original to the home. While massive renovations inside a historic home usually aren't permitted, enlarging the home by building an addition may be permitted as long as the addition adheres to the home's architectural style. Any existing details in the original portion of the home should be reflected in the addition.
- The Process of Acquiring Financing and Insurance for the Home is a Little Different
Before you start looking at Rockingham County homes for sale, you'll want to obtain mortgage preapproval so you know how much you can borrow. However, you need to know that the process for acquiring financing for a historic home is a little different than securing financing for a traditional property. Some mortgage programs can't be used for historic homes that require a lot of repairs; the lender is likely going to want to know how you're going to pay for these repairs. There are programs available, including the Limited 203(K) loan and Title 1 Property Improvement Loan, that provide homeowners with affordable loans to repair their historic homes. You'll also want to shop around for your home insurance, as some home insurance companies may be reluctant to insure properties that they feel will be expensive to repair or replace.
- You May Qualify for Tax Incentives
There are tax incentives available for homeowners who need to rehabilitate a historic property. The Federal Historic Preservation Tax Incentives Program is one tax credit you may qualify for; there are also tax deductions available if your property is eligible for a historic preservation easement.
- Properly Maintaining a Historic Home Requires More Resources Than the Average Home
While historic homes have long lifespans thanks to their quality construction and durable materials, they do occasionally need maintenance. Maintenance for a historic home is usually a little more expensive and time-consuming than maintenance for a conventional property. Historic homes may require specialized materials and labor to ensure that the repairs are in line with the home's original design.
- Historic Homes are Valued for Their Distinctive Details
Historic homes contain details that are often only found in this type of property. Your windows or other details might not be perfectly centered, or your floors may creak and appear a bit uneven. These aren't issues that need to be fixed; instead, they should be viewed as details that are unique to a historic home's distinctive style and architecture.
A historic home is a terrific option for anyone who wants to own a property that's a part of history and features a one-of-a-kind design. Ready to start the search for your historic home? Contact us today to get started!