Considering Buying an Old, Historic Home? Then Think Long and Hard Before You Do

Old homes have seen a whole lot of living, which is what makes them so enticing. Be careful, though, because owning one can mean spending most of your living maintaining the thing.

For people who love old houses, Business Week has a tour of historic homes for sale around the country that is not to be missed. Everything from Queen Anne confections, Prairie Style mansions, colonials that are truly colonial (in that they predate the United States of America). They are as beautiful as they are compelling… but that doesn’t necessarily mean you should jump at the chance to own one.

MSN real estate analysts spoke with experts from around the U.S. about the pros and cons of buying historic homes, and here are eight key findings:

1. AN OLD HOUSE NEEDS THE LOVE. “You buy one of these places with a sense of stewardship. It’s not just a real estate deal,” cautions David Duncan, owner of Needham Duncan Architecture in Madison, Conn.
2. OLD HOMES HAVE INTEGRITY. “If you want to transform an old home into a new home, then buy a new home,” said Amy McFeeters-Krone, president of Building History, a preservation consultancy in Portland, Ore.
3. AN OLD HOME NEEDS FRESH EYES. Look past the dowdy wallpaper, advises project director Emily Ramsey of the Historic Chicago Bungalow Association. Consider how to use existing space more effectively, rather than slapping on a wing or another floor indiscriminately.
4. YOU COULD GET A TAX BREAK OR SEVERAL. Depending on where you live, there are potential tax benefits. In Oregon, buyers of certain historic homes can have property taxes frozen for 15 years if they submit, and get approval of, a preservation plan. Be aware, though, that with government incentives will likely come a set of strict rules on what you can do to the exterior of your home if you live in historic districts. Very strict. Possibly all the way down to things like the color of paint. Old, rattly windows may be considered historic, so you can’t replace them. So don’t be caught off guard when you aren’t allowed to do your planned remodeling.
5. RE-SELLING IT COULD BE PROBLEMATIC. Not everyone will share your love of an old-fashioned, outdated property, or your willingness to accept the idiosyncrasies that will invariably accompany an old house.
6. MONITOR LOCAL ECONOMIC CONDITIONS. George Siekkinen, senior architect for the National Trust for Historic Preservation, says that the reason some towns have tons of inexpensive, historic homes especially in the Northeast and Midwest, is that they’re losing jobs and people. Make sure your charming piece of real estate isn’t in the middle of an area hit hard by crime, unemployment and underfunded schools.
7. SOME STATE GOVERNMENT HELP IS AVAILABLE. State historic preservation offices collect information about older homes. The house you’re looking at could be in their database even if it isn’t listed on the state or national register. A list of state contacts is available through the National Register of Historic Places.
8. OLD HOUSES CAN BE MONEY PITS. The wiring may be old and even dangerous. The paint could be lead-based and toxic. The roof may leak. Do yourself a favor and go out and rent The Money Pit, a 1986 comedy starring Tom Hanks and Shelley Long as a couple that buys an old home at a low price. You can probably guess what happens next, and it’s quit amusing. Unless it happens to you in real life.

Of course, it does not have to be that way, especially if actually owning an historic home has been a lifelong dream of yours and you are ready to accept (and financially bankroll) the work involved. Always hunt extensively and try to find a bargain buy, then consider all your options. Skilled help is available. Expert craftspeople can build authentic-looking replicas for older fixtures and help you restore just about anything.

It will be an expense, but if it’s your dream, it could be worth it.

There you go. A little sobering information before you take the plunge never hurts. Just to think it through and be cautious when and if you buy. Otherwise, you may end up like Hanks in a Money Pit of your own, watching every possible thing go wrong. Leave that experience for the movies. Be sure, if you are thinking about buying a historic property — particularly if you need a hefty Florida home loan to do so — that you keep these points in mind.