Buying A Virginia Historic Home

Seasoned Advice About Purchasing An Antique Virginia Property

Buying an Historic Virginia Home

It‘s often said, "What’s Past is Prologue."

In real estate, the past can indeed determine the future, when buyers choose to restore or preserve a historic property. Opportunities abound for those wanting to purchase a historic home, but so do questions about the soundness of the investment. Before making an investment in history, recommends that potential home buyers consider these questions: What regulations govern local historic buildings and districts? Does the house need extensive restoration? Are original or substitute materials available for repairs?

Are craftsmen who are knowledgeable about historical materials and building systems available? How will the house be appraised? Knowing what to look for is an important first step. "Potential buyers should understand that there are significant differences between a historic house and a new one," Beavers says. "Before purchasing a historic home, consumers will want to research just how much restoration is needed and how much the restoration will cost. That includes, of course, uncovering any possible environmental problems not typically found in new construction such as the presence of asbestos or lead paint."

Knowledge of any structural problem and the time and money needed to fix it should not only influence the decision of whether to buy, but also how much to offer.

In some cases, the seller may be required to undertake some of the work as part of the purchase agreement. The advantages of owning a historic house often outweigh the work that goes into finding and securing the property. There is a rewarding sense of history in the unique detailing and meticulous craftsmanship found in historic homes as well as the satisfaction of restoration. "There may also be financial benefits for a historic home owner," explains Beavers.

"Those benefits range from reductions in property taxes and adjustments to assessed value, to state income tax credits and property tax freezes for qualified rehabilitation and restorations." The National Trust for Historic Preservation reports that 37 states and the District of Columbia have laws that provide individuals with incentives for owning historic properties that meet their criteria, and not all older homes do. "A historic house is an example of the cultural or physical development of a community, state, or the nation due to its architecture or association with an important historical figure or event," Beavers says.

If a home does qualify as a historic property, then it may be listed individually or as part of a historic district. The listing of a building or district in the National Park Service’s "National Register of Historic Places" provides public recognition of its importance, but will not interfere with an owner’s right to alter, sell, or determine how an individual property may be used. "A local or state government housing preservation organization usually will assist owners who want to pursue a historic designation," Beavers says.

 However, even if the historic building meets the designation criteria, it will not be listed if the majority of property owners in a district object for possible reasons. In this case, the building is put on an "eligible" list should the objections be overcome in the future. For more information on historical properties, contact the National Conference of State Historic Preservation Officers at 444 North Capitol Street, NW, Suite 342, Washington, DC 20001-1512. For a list of historic real estate specialists, contact the National Trust for Historic Preservation at 1785 Massachusetts Ave., NW, Washington, DC. 20038. Bill Would Boost Efforts to Keep Historic District Homes in Good Repair by Realty Times Staff Historical preservationists are cheering the congressional support being given to a bill designed to help low and modest income homeowners in historical districts keep their properties in good repair. The National Trust for Historic Preservation says the Historic Homeownership Assistance Act (HR 1172/S 664) has achieved a majority of sponsors in the House. So far, 221 members of the House and 39 senators back the measure. Majority support increases the likelihood that the act will be passed in the current Congress.

 Fifteen states have already passed similar legislation. Richard Moe, president of the National Trust, said passage of the Historic Homeownership act would benefit to lower- and middle-income homeowners in historic neighborhoods. "Contrary to popular belief, most historic districts are home to people of modest means. This tax credit would provide them with a much-needed boost," he said. The act would establish an income tax credit -- up to 20 percent of the cost of rehabilitation -- for homeowners who rehabilitate or purchase newly rehabilitated homes as their primary residences. Homeowners without sufficient tax liability to use the credits could transfer them to their mortgage bankers and make a smaller downpayment or lower mortgage rate on their house. Until now, there has been no federal tax credit for such projects, though one exists for owners of commercial buildings. Eligible properties include those listed in the National Register of Historic Places or contributing structures within certified federal, state or local historic districts.

 The credit is directed toward the housing stock in deteriorating neighborhoods, making homeownership easier for people of diverse income levels while rebuilding communities and preserving historic buildings. According to the National Trust, the legislation would help combat suburban sprawl by promoting reinvestment in the sound housing stock and existing infrastructure of older areas. Trust members complaint that currently, federal tax laws encourage low-density, land-consumptive development or neighborhood demolition in the name of urban renewal or highway construction. The Historic Homeownership Assistance Act is sponsored by E. Clay Shaw, Jr. (R-FL) and John Lewis (D-GA) in the House, and Lincoln Chafee (R-RI) and Bob Graham (D-FL) in the Senate.

 The late John Chafee, the current Senator's father, was the original author of the legislation. While the Historic Homeownership Act is moving through Congress, also moving along is a bill called the Property Rights Implementation Act, designed to give homeowners in historic districts easier access to the federal courts when municipal, county or state historical district commissions render adverse rulings. In a story in its current edition, SmartMoney magazine notes that community preservation committees are gaining in number and clout, controlling everything from the color of a home's trim to the kind of glass in replacement windows. SmartMoney notes that neighborhoods that "retain architectural integrity can increase in value 25 to 30 percent faster than other neighborhoods."

Homeowners, however, complain that overturning such decision can be very costly and time consuming because appeals often must start with zoning boards, then go to the City Council, and then through the local and state courts. The Property Rights Implementation Act would allow homeowners to go straight into federal court if they feel they cannot get a fair hearing on the local level. Historians Offer Peace - And Classes - To Real Estate Agents by Realty Times Staff The National Trust for Historic Preservation, often the target of real estate industry criticism for its protectionist viewpoints, is offering a series of classes around the country for real estate agents who would like to learn how and why they should develop brokerage practices that embrace historical homes. Seminar training covers the history of architectural styles, from early colonial where appropriate to contemporary.

 It also covers historical preservation and conservation easements, historical preservation regulations and tax easements. According to National Trust spokeswoman Nadja Gutowski, based in Washington, the program's aim is two-fold: To strengthen real estate agent expertise in the historical niche market; and to facilitate the stewardship of historic properties. In many communities preservationists are considered hindrances to progress - and even more so as the debate increases over "urban sprawl," "smart growth" and "no growth" initiatives. Builders, developers and real estate agents often complain that historians protect old buildings simply because of their age, rather than because of their local, regional or national significance. The real estate industry often finds it difficult to renovate and update some neighborhoods in some communities because of preservationist obstacles.