10 KEY STEPS AND CONSIDERATIONS WHEN BUYING A HISTORIC HOME

Transcription

1 10 KEY STEPS AND CONSIDERATIONS WHEN BUYING A HISTORIC

2 TABLE OF CONTENTS 1. Is This House Historic 2. Benefits of Buying a Historic Home 3. Home Inspections 4. Repair and Restoration Expense 5. Meeting Health Standards 6. Knowing the Rules 7. Utilities 8. Common Restrictions 9. Tax Credits and Grants 10. Proper Documentation 11. Asking for Help 12. The Sanregret Team 13. Helpful Links

3 Have you fallen in love with a certain area or an actual historic home? 3 Many people become enchanted with the charm and appeal of historical homes. However, the expense and restrictions are another story when it comes to making a purchase. In addition, there can be other hidden problems with the home due to its age problems that you might not necessarily expect with, say, a newly constructed home. This book will help walk you through some of the Key Steps to figuring out if a historic home or property is the right choice for you.

4 CONFIRMATION Under the National Historic Preservation Act of 1966, a building must be at least 50 years of age to be considered historic. Although there can be exceptions, this 50-year ruleof-thumb works for historic building acknowledgment not only at the national level, but also at the state and local levels. Places to look to see whether a building is considered historic or not include the National Register of Historic Places, which provides access to individual places and historic districts across the United States, and your State Historic Preservation Office. Local historic preservation organizations (historical societies, etc.) are also excellent resources while something as easy as checking your County Auditor s website may list the age of a building and can be a good place to start. 4 Our recommended first step? Make sure the property you are considering is, indeed, a historic property!

5 BENEFITS OF BUYING HISTORIC 5 First, let s cut to the chase historic homes are GORGEOUS! The curb appeal alone is enough to draw buyers from all walks of life to take a look at your home. However, are you aware that many states, counties and city governments offer tax benefits, credits or incentives for owning and restoring a historical home? You absolutely must know if any of these benefits are available in your area and if you qualify for them. When considering buying a historic home, this alone can help you choose between two different houses in the same geographical location that you may be considering. These benefits certainly won t pay for the house, but they may pay for a substantial percentage of the restoration! Know what benefits are available for each house you might be considering!

6 PROTECT YOURSELF! 6 Some of the steps of buying a historical home are not unlike those of buying a home that is built in more recent years. Always make sure you protect yourself in the same manner you would when making any home purchase. Start by getting a Home Inspection. However, don t make the mistake of many who use whatever inspector is available. Make sure you use an inspector who has received his certification by your state and is part of organizations on the state and national level, such as the American Society of Home Inspectors. Being part of these organizations keeps the inspectors accountable and can provide assurance regarding the quality of their work. Now go one step further and make sure your inspector specializes in older homes. Some even might go so far as to get a structural engineer to inspect the home. Get a Home Inspection by a certified Inspector.

7 BE PREPARED! 7 Most historical homes are in need of some kind of repair or continued restoration. Make sure when considering the purchase of a historical home you take into account all of the necessary expenses for this work to be completed. Know the cost of the materials and contract work if you are not able to make the repairs yourself. In addition, make certain to set aside money for unexpected expenses. This is wise when purchasing any home, but becomes absolutely necessary when purchasing a historical home. There will be expenses that are unexpected and others that just occur because of the home s age. Being prepared reduces stress and continues to allow you to focus on the joy your home brings you. When estimating the expense of contractors, make sure to gather quotes from multiple companies to get a better sense of expected cost. Know the expense of repairs and continued restoration.

8 BE SAFE! 8 Make sure you and your spouse have discussed situations like the presence of asbestos, lead and other toxins that might be present in a historical home. If it is something you are concerned about, make sure you know the steps to have these items tested for and what the expense may be to you for both the testing and the repair needed should they be found present. One house may also be different from another depending on size and other factors. While the testing fees may be the same, most certainly the repair work required will not be. If you are considering multiple houses, make sure to keep track each house of those separately items for so proper consideration may be given. Test for Health Standards like Lead and Asbestos

9 FOLLOW THE RULES! 9 Sometimes local and state level government can impose certain regulations that must be followed. You might not be allowed to add on or change the type of wood used for the flooring. Some local governments may even have an opinion as to whether you should be allowed to install updated HVAC elements. Knowing the state and local regulations will keep you informed so these mistakes aren t made. This might require some research time but will be well worth it. Know the Rules and Follow Them!

10 RESEARCH UTILITIES! 10 Utility bills in a historic home can be good, bad or similar to what you re used to paying. It is imperative that you know what the prior 12 months worth of utilities have cost the current owner and why. A variety of causes can make your use of electricity different than theirs so make sure you compare behavior also. This can be done with a few simple questions like: How many people lived here full-time? Do you keep the house extremely warm in the winter and cool in the summer? Do you host company a lot? Then look at their utilities and compare cost along with behavior to make sure that you are aware of what this expense might look like for you. Know What Your Utilities Will Be!

11 COMMON RESTRICTIONS 11 Some restrictions are more common than others. Here are a few of the most commonly found restrictions that may apply when you are considering purchasing a historical home: 1.Tax levies applied to historical neighborhoods in certain local areas 2.Changing square footage of a historical home 3.Changing the exterior appearance of a home, such as shutters, windows or roofing. The State Historic Preservation Office is the state agency that oversees historic preservation efforts in their state. While the historic property may be listed on the National Register, it is typically state or local preservation laws that trigger most restrictions. Research common restrictions

12 GRANT MONEY AND TAX CREDITS 12 The National Register of Historic Places does not have grant programs for people who purchase or currently own a historic home. There are tax credits available through Heritage Preservation Services which may provide assistance. In addition, there may be state-run programs available. Find out by going to these sites: Heritage Preservation Service - m State Historic Preservation Offices - Look for Tax Credits or Grant Programs

13 HAVE SUPPORTING DOCUMENTATION 13 If the historical home you are considering for purchase is listed on the National Historical Register of Historic Places, make sure to procure a copy of this documentation for your own records. According to the nps.gov they are digitizing all of their records and you can get a copy by simply ing the request. Find out more here: Obtain Documentation

14 ASK FOR HELP 14 If all else fails and you are still in need of answers and guidance during your consideration of purchasing a historical home, then look for guidance in the local area. There are more than likely multiple organizations in your area that are more than happy to help. Cincinnati Historic Homes and the Sanregret Team comprised of Realtors Adam Sangret and Karen Niemel Garrard offer unparalleled real estate services to the Cincinnati and northern Kentucky markets. We specialize in historic homes, apartment buildings, commercial properties, and real estate owned properties. Our priority is to serve the needs of our clients and we pride ourselves on a reputation of being trustworthy and experts at what we do. Our business is built on repeat business and client referrals, which shows a high level of client satisfaction and confidence in our service. Working with the Sanregret Team ensures that there is always an agent available to show property and handle any other questions or concerns that may arise. We believe that all of our clients deserve complete satisfaction and no less than the best experience with every transaction.

15 THE SANREGRET TEAM 15 Adam Sanregret Lead Agent is rated in the top 5% of the Cincinnati Area Board of Realtors with an average of a closed transaction every 10 days (2006 to present). He has received 5 Circle of Excellence Awards to date. Adam is a lifelong resident of Cincinnati and has been a full time real estate agent for over 8 years. He is experienced in home restoration and his work has since been featured on local home tours and in the news. He has also received an award by the Cincinnati Preservation Association and has even been called a serial house restorer by the Cincinnati Business Courier. His interest in restoring urban and historic properties has brought him to his current project, a Queen Anne Victorian located in the historic Rose Hill Subdivision of North Avondale. In addition to his real estate business, Adam owns and manages his own residential rental properties, which has contributed to his unique experience as a real estate agent. Karen Garrard Client Services and Marketing has a Ph.D. in Anthropology and over 15 years experience in historic preservation and archaeology. Now a full-time real estate agent, Karen is also trained in the designation, regulation, and classification of historic properties. Originally from Buffalo, New York, also once a Queen City, she is passionate about historic homes and understands the potential pitfalls and rewards of owning one. Karen is currently restoring a Victorian of her own located in the Sinton-Gilbert Historic District of Walnut Hills.

16 HELPFUL LINKS 16 Cincinnati Preservation Association 342 West Fourth Street, Cincinnati, Ohio Telephone: (513) Fax: (513) Ohio Historic Preservation Office 800 E. 17th Avenue, Columbus, Ohio Telephone: (614) Fax: (614) Ketucky Heritage Council 300 Washington Street, Frankfurt, Kentucky Telephone: (502) Fax: (502) National Register of Historic Places National Park Service, National Register of Historic Places, 1849 C. Street NW (2280), Washington, D.C Telephone: (202) Fax: (202) National Trust for Historic Preservation 1785 Massachusetts Avenue, NW, Washington, D.C Telephone: (202) Fax: 800) CINCINNATI HISTORIC HOMES Cincinnati, Ohio Telephone: