5 Tips to Buying a Historical Home
The aesthetic beauty of a historic home is a magnet for many home buyers. These homes are a piece of history that can literally tell a story as the architecture is unlike any modern home and has withstood the test of time. Some historically registered homes do come with restrictions so it is important to be aware of this when you purchase. These restrictions do however help keep the property value stable and ensure that all homes are equal. Historic districts tend to have a steady property value and an active neighborhood association invested in the quality of the area. Before committing to a historic home make sure to do research on the property and the area. Below are some tips that can help you when beginning your historical home journey.
1. check registration
Always check to confirm that the house is actually registered and recognized as a historical home. A historic property can be registered either on a national, state and/or local registry. There are multiple ways to confirm the property. You can contact your state historic preservation office, the community local historical societies, nonprofit preservation organizations or the local government preservation agency.
2. Financing
Getting financing and loans for a historic property can be harder than conventional home buying and you may need to take an alternative route. Because of this it’s important to do some shopping when getting financing for your home, as well as for insurance. You can look into a private HUD Title 1 loan for smaller repairs and then get a 203K, rehab mortgage insurance, to go towards the purchase and cost of rehabilitation. Another option available would be getting a Fannie Mae Homestyle Renovation mortgage for the same purpose.
3. Restrictions
Make sure you know if your home has restrictions and guidelines to follow. Federally registered homes are free of any restrictions however local or state registered homes have specific restrictions per their district.
4. Inspections
Although home inspections are not required with a historic property it is always a good idea to get one. It is recommended to find an inspector who has experience dealing with historic homes and the issues they may present. Homes built before 1978 have the possible presence of lead-based paint or asbestos, so it is good to find someone who knows to look for these things to keep you safe.
5. Estimates
Dealing with an older home it is best to get estimates from local contractors to see how much repairs and/or restorations could cost you. Giving yourself enough time to get estimates from different contractors ensures that you can find the most cost efficient and adequate contractor to get the job done correctly the first time without you having to overpay.
Historic homes are a piece of history and a bright point in any community. Making sure you have a complete understanding of what you can and can’t do with the home not only financially, but as well as district restrictions, is key before investing in this type of property. Hiring an inspector that is experienced and using your historic home network of resources will help ensure a smooth home buying experience.
