Historic homes, even when in disrepair, simply cannot be beaten for their “olde worlde” property charm.
Remodeling them, however, can be a challenge for new owners.
Any property in an officially designated historic district – either national, state, or local – will be subject to rules and regulations laid down by local planning authorities or federal agencies.
Many homes subject to regulation are on the National Register of Historic Places (NRHP). If you’re looking to find a historic home, here are some general rules for them:
- They should be at least 50 years old.
- Have connections to significant historical events or people.
- Feature a specific historical architectural style.
- Have a high proportion of historical character.
- Currently or potentially provide historical information.
The relevant authority will monitor renovations to homes in any historic district, especially if the district is in a popular tourist site.
Buyers of historic homes should also note that remodeling will cost more than the average property because renovations will need to be completed to match the authenticity of the rest of the building.
Achieving such changes can take longer as they often need specialist tradespeople.
Insurance for historic homes can be higher, and so can mortgage rates. However, buyers may be able to find an insurance company that specializes in historic homes.
On the upside, historic homes may also qualify for specific grants and loans, as well as federal and state tax incentives.
The Federal Historic Preservation Tax Incentives Program, or Historic Tax Credit, provides a 20% tax credit to owners who intend to renovate an income-producing building.
This federal credit can be used alongside an incentivization program offered by one of 37 US states that see value in encouraging the preservation of historical buildings.