Historic homes are a unique challenge. They’re exciting and have a lot of potential that can be developed but require due diligence. Cities tend to limit what changes are allowed on these properties in order to preserve the historical aspects and significance. Any work done on a historic property will require permits. The city will want to get involved, and even for something as trivial as the home’s color. If there were desired changes to the structure, the city would most likely not grant a permit to do so, especially if it’s a Victorian type of structure.
The maintenance of a historical home can also be expensive. For example, replacing a structural beam has an ornamental design from the era. The cost of finding someone who can craft the same kind of structure can get costly very quickly because it’s a lost art. Nowadays are very few and far between people that can replicate that kind of work. Certain historical homes will have a roof pitch that the owner cannot alter, once again due to the historical significance.
Historical homes are undoubtedly beautiful, and there’s a lot of potential in them, but be very sure of your decision. Expect inevitable hiccups with the city while trying to get permits.
And even financing can get tricky at times because some banks have different guidelines for historic homes and historic buildings to ensure the buyer can afford to maintain the upkeep necessary. For example, an investor we’re familiar with purchased a property that was over 100 years old and needed the roof to be changed. Specifically, the drainage system on the roof needed to be improved. The owner went to the city to try and get permits, but the city did not want them to do it the way they had provided in the plans. While the plan was very effective, the drains were slightly visible from the ground area, and the city didn’t like that. They had to change the plans to accommodate the city, and the job ended up costing three times more than what it would have typically cost. Not to scare anyone from buying a historical home, but knowing and resources are vital to these properties.
When you buy a historical property, you buy it directly from the owner, and usually, the financing is not a problem. Still, the city will get involved because they like to see the transfer of title on a historical building in some cities. They want to make sure that the new owner understands the guidelines, so they want to clear it. They want to make sure that they get notified. The city will be very involved. The city gets involved somehow, and if it doesn’t get involved in the beginning when the title is switched over to the new owner, it will eventually get involved because every building needs an update or an upgrade. Every time you do something, and the fines can be hefty because you’re messing around with the historical portion of that city, proceed with caution.
Contributor: @PabloFPomes
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