Follow Kevin Twitter Facebook
Email Kevin Email
Residential Real Estate
Sep 15, 2014

What You Need To Know Before Investing In A Historic Home

Sponsored Content provided by Kevin McKoy - Broker, Network Real Estate

Wilmington is known for its rich history and beautiful Southern architecture. Stroll down any street in Historic Downtown Wilmington and you’re bound to encounter a beautiful historic home that takes your breath away. Despite the charms of living in a historic home, there’s a lot of discussion in the real estate world about whether it’s a good financial investment. Fortunately, the experts at Network Real Estate have laid out everything you need to know before you invest in a historic home. 

Understand that an older home means older components. Quality wiring, plumbing, heating/cooling, roofing and a solid foundation are all key considerations when deciding to invest in real estate. Investigate when the last time these components have been upgraded, or whether you would be willing or able to do those renovations yourself. These are all things that will be examined in the home inspection, but your Realtor will also be able to answer many questions about the history of renovation in the home before you reach that point in the purchase process. If you decide to do renovations, know that you will have to follow code if you live in a designated historic neighborhood, such as Historic Downtown Wilmington. Neighborhood codes are the city’s way of ensuring that the look and feel of a neighborhood’s history and tradition are preserved, while also allowing homeowners to update for comfort and lifestyle.

On average, historic homes cost more in utilities every month. Historic homes tend to be more expensive when it comes to heating and cooling, and possibly for electric and gas as well. It really depends on the features of the home. For example, although some historic homes have updated insulation, others don’t, and while original windows are an attractive feature that add historical authenticity to a home, they may not be as efficient at holding in heat and air. It’s worth mentioning that this isn’t always the case, depending on renovations and craftsmanship, but for those shopping for a historic home, it’s certainly a consideration. Sellers may be able to provide utilities cost estimates. For many people, utility costs aren’t a deal breaker, but be sure to budget them in to your total cost and be realistic about your priorities.

The success of your real estate investment has a lot to do with the neighborhood. Beyond the history and quality of the home itself, determining the quality of the neighborhood or even the street is crucial before investing. Many upscale historic neighborhoods are safe investments, but up-and-coming neighborhoods may also be a smart choice, depending on market forecasts in the area. Even if you are generally familiar with the city, your Realtor is still your best resource for neighborhood buying patterns. It’s also worth noting that your property tax is calculated during the home assessment, and assessors look at everything from quality of schools, crime rate, and commutability when determining a home’s market value, not just the property itself.  

Figure out what’s important to you to decide what it is you’re investing in. When we use the word “investment,” many times it’s synonymous with a financial investment (and an anticipated return). But when buying a historic home, or any home at all, it’s important to remember the other investments you’re making in your future. Understand that attaining the lifestyle you want is an investment in your happiness, and although there are special considerations with historic homes, the charm, history and beauty of historic homes is a return unto itself. Conversely, you may not have strong feelings about the historic home lifestyle, look and feel, and simply want to make the smartest financial investment. Consider what’s truly important to you, and make decisions based on realistic expectations. 

Your Realtor will be a good point person during the shopping part of the purchase cycle, as he or she will be able to remain objective and provide financial guidance while you decide whether a home is the perfect fit for your life (not just your wallet). Network Real Estate has a variety of gorgeous homes available in nearby historic neighborhoods like Historic Downtown and Sunset Park. Contact us today to speak with one of our Realtors about making your real estate dreams a reality. 

Kevin McKoy is a GRI-certified, licensed real estate broker at Network Real Estate, which has exclusively served a high volume of property sales and purchases in the greater Wilmington area for over 30 years. With three offices at College Road, Historic Downtown and Pleasure Island, Network’s brokers are widespread and well-versed in this marketplace, making Network a preferred Real Estate company for first-home buyers and beyond.

20489 networkrealestate insightsad final
Ico insights

INSIGHTS

SPONSORS' CONTENT
Billhunter300x300 b&w

Data is More Useful with Visualization

Bill Hunter - Wilmington Design Company
Img 0801

End-of-Year Planning Strategies to Consider

Brett Tushingham - Tushingham Wealth Strategies
Deedeegasch 10218121741

Preventing Alcohol Liability for Your Social Gathering

Deedee Gasch - Cranfill Sumner & Hartzog LLP

Trending News

Blaze Pizza Set To Open Wilmington Location Next Week

Jessica Maurer - Dec 11, 2018

GE Hitachi Plans To Acquire Nuclear Decommissioning Firm

Christina Haley O'Neal - Dec 10, 2018

'Most Intriguing' Talks Focus On Economic Projects, Inclusion Efforts

Christina Haley O'Neal - Dec 11, 2018

Jillian Howden Joins Leath HR Group

Christina Haley O'Neal - Dec 11, 2018

ILM Receives Brand Identity Award

Christina Haley O'Neal - Dec 11, 2018

In The Current Issue

Removing More Digital Banking Barriers

Online and mobile banking isn’t convenient if the processes don’t work well. That reality prompted the development of a new component for nC...


Live Oak Bank Earns USDA Lending Kudos

Although it has made its name primarily as an SBA lender, Live Oak Bank has expanded into the realm of U.S. Department of Agriculture loans....


Paying For Retirement

Retirement special section: Americans don’t have enough saved when they are ready to retire, according to recent studies. A look at how some...

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes