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Imagine making a piece of history into a home.
Image source: Getty Images
For some potential home buyers, it isn’t enough to get a mortgage loan and buy just any house. If you live in an area with eye-catching historic properties, you might be dreaming of turning one of these houses into your very own home. I certainly get the appeal; I used to be a history museum professional and was deeply immersed in local history and historic preservation concerns, so I have a soft spot for older homes.
Buying a historic home comes with additional baggage and considerations besides the standard costs of homeownership, however. Per Realtor.com, a historic home is defined as one that shows a signature architectural style, reflects a particular time period, or is associated with significant people in history.
Alternatively, a historic home can also be defined as such by its inclusion in a particular neighborhood called a historic district. Chances are, a historic home will come with unique features beyond those you’d get with a home built in the last few decades. Here are a few pros and cons to consider if you’re leaning toward buying one.
Pro No. 1: They’re beautiful and built to last
First and foremost, historic homes can be gorgeous, especially if they’ve been maintained and well cared for over the years. A lot of newer construction is, well, bland, and what you might gain in modern features, you’ll lose in unique windows, ceiling molding, and “gingerbread” on the eaves of your roof. Plus, if you’re buying a historic property, it will truly have been built to last, as opposed to a home in a planned community created by a builder who may be trying to cut corners to save time and money.
Pro No. 2: You get to benefit from city preservation initiatives
If you love the area you live in, this is a major perk of buying a historic home. You’ll have the privilege of caring for a piece of history in that area, and your investment of time and money into your home will generate lasting returns for the community, as well as for yourself. Economist Donovan D. Rypkema studied and reported that property values in historic districts appreciated faster than the housing market as a whole. While buying a home purely for economic gains is perhaps a bad move, given the way the market fluctuates, if you buy a historic home, you can rest easier knowing your home is likely to appreciate.
Pro No. 3: You may qualify for tax incentives and other financial help
Another pro to buying a historic home is the possibility of qualifying for tax credits, special grants, and even better rates on loans to cover repairs, if you rehabilitate and live in that home. The National Register of Historic Places maintains a list of SHPOs (State Historic Preservation Offices), where you can see what your state offers. Your local area might also have a board of officials who can help you get funding to restore your historic home to its former glory.
Con No. 1: Repairs may be more expensive
Unfortunately, buying a historic home comes with cons, too. One to be aware of is that repairs and renovations could be more costly than you’re expecting. After all, you’ll be facing an older home with perhaps very little idea of what kind of changes or repairs have been made in the past, and no idea of whether they were performed correctly. You might also have to spend more for a specialized building contractor who has experience working with historic properties, as well as more for materials and supplies.
Con No. 2: You could be limited in changes you can make
Depending on where your home is located and how any work is being funded (such as by historic preservation grants), you might not be allowed to do anything you want with the property. For example, if your windows are in bad shape, you might be required to make repairs with like materials rather than just replacing them with modern vinyl or aluminum windows. Bob Vila notes that it’s a good idea to consult with your local preservation authority or landmarks board before planning repairs or changes, to ensure that your project will be within the local rules.
Con No. 3: Homeowners insurance may cost more
Finally, when you buy a historic home, you may end up needing to pay more for a homeowners insurance policy. The home itself may cost more to rebuild in the event of a total loss, and it may be larger and could also include various outbuildings that will need insurance coverage. If you shop around for coverage, you’ll be able to compare your options and pick the best homeowners insurance policy for your property.
If you’re aching to own a piece of unique architectural history and you go into the process with eyes wide open after considering the above pros and cons, you may just find that buying a historic home is right for you.
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