Is there an advantage to buying a historic home?

Question

Is there an advantage to buying historic homes? I know there are many disadvantages like unpredictable budget breakers, but is there a reason someone would choose a historic home specifically? I am looking at one in Central Texas to wholesale out and I'm not sure if there is a market for them at all.

Account Closed · Answer

@Steve Morris I'm laughing at your comment! @James Guillot historic homes are very lovely and do appeal to a certain niche of people because of their lovely design. However, I'm telling you from experience that they are a LOT of work. Probably not too bad of an idea for wholesaling, but I'd never ever use one as a rental.

Steve Morris · Answer

"Is there an advantage to buying historic homes? "

Yes, besides a nice-looking house, you'll make great friends with"

1) Over-priced contractors that know how to fix hist properties

2) Guys in govt that need to approve ANY change/repair in the building to make sure it's correct (even if they know nothing and can take as long as they d*** well want to make up their mind and give you a permit),

3) Sellers of period-piece things like windows that are inefficient and up to 10x the price of efficient windows.

4) Nosy neighbors that want to make sure you keep the property just-so and can go to govt to make it happen.

You might get a prop tax break in return for having an open house once a year.  However, you won't be able to raze the building to build something more useful.

Don't ask how I discovered this one (and final) time.  Now I quietly smile when I drive by buildings like these.

Pete Harper · Answer

"Historic" home in Central Texas usually means a run down fixer upper.  There is no premium for old homes in Texas.  If it has not already been updated you are looking a major costs.  For example adding HVAC to an older home can be a huge deal.  I see these type of properties all the time at the sheriff's auction.  Most counties are giving them away.

Hard pass in my book.

Mike Reynolds · Answer

@james Guillot  Hey now, I don't charge that much more for historic houses. I have to pay bills too ya know.

Lol, there are so many variables when working on a historic home it isn't even funny.  One I worked one 20 years ago had this special skirting that had a siding pattern I had never seen before.....EVER. I had to take a good piece of it and send it off to a specialized mill (3 states away of course) and they had to build a special knife for the milling of it. Then they told me it was clear heart cypress and we had to go to the bottom of the Louisiana swamps to find some that wasn't older pecky cypress because there was no such thing as clear heart cypress anymore. So at 5000 dollars a log we were able to get enough make it.

All just to skirt the bottom of the house........

Then there was this 10'x6' sliding door that was African mahogany..........

Yeah man.....piece of cake I tell ya.....

Nick C. · Answer

Steve said it best above. If this is a one off flip and you can take your time and don't have a budget that's one thing. But if you're flipping for a profit, no chance.

Colleen F. · Answer

One advantage is if you are a homeowner (not an investor) and  there are state tax credits for historic homes however that is often offset by the increased cost of rehabing a historic home. Another may be they are in prime downtown areas that are popular.  But historic just doesn't mean old, sometimes there is history associated with the property.

Jaron Walling · Answer

@James Guillot The only advantage I can think of would be the intrinsic value. A lot of people love the design, original wood trim, and layout that type of property offers. You know what I like better? LOCATION.

If the home is 120 years old with a 80 year old asbestos tile roof in a terrible location I'll hard pass on it every time. These types of properties come with challenging rehabs and contractors that are hard to find. I'd tread lightly if you plan to make an offer on a truly historic home. My co-worker is in the process of buying one right now. They are paying a premium for it because of the location. She told me it's the "forever home" and I just shake my head... It's her first home purchase.

Is there an advantage to buying a historic home?

Most Popular Reply