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Mark Hood of Bowling Green, Ky., has been restoring old homes since he was 19. For him, there is nothing more rewarding than doing the work with his own hands then seeing the fruits of his labors. But if there's one thing Hood has learned over the last 30 years from working on at least 20 historic properties, it's this: Be careful. There are important do's and dont's to restoring old homes that will mean the difference between a labor of love -- or floundering in a money pit.
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In today's slowing but still hot real-estate market, an old home can be a bargain -- sometimes even after paying for a total overhaul. In fact, some historic homes are a downright steal. For example, the Housing & Redevelopment Authority in Lynchburg, Va., has a homesteading program that allows people to buy a dilapidated, historic home for only $1. The catch? You must renovate it and live in it for at least five years.
Another attraction: state and local government tax incentives. About half of the states offer tax credits for restoring historic properties. And plenty of cities have tax abatement or moratoriums on old homes that are brought back to life. Although it's not that easy to qualify for these tax incentives and the amount you receive might not amount to much, you don't get such deals when buying a new house.
Still, caution must be applied to every step of the process, from buying the home to repairing or renovating it to applying for tax relief. Rush into buying an old house without bringing in an inspector, structural engineer or a contractor who can give you an idea how much it will cost to make all those fixes, and you could end up with a costly mistake. Likewise, move too fast to start restoring your historic home without learning its history, getting the proper permits and certifications, and applying the necessary rehabilitation standards, and you might find yourself with a home makeover that doesn't match the original character of the property, lands you in hot water with the local historical board or doesn't qualify for those tax credits you were counting on.
For the last few weeks, with May as National Preservation Month, we've shown you historic home makeovers across the nation -- from the Northeast to the Southeast and Midwest and finally to the West. Maybe you've been inspired by the transformations shown in our slide shows and are ready to find your own fixer-upper. Before you make the leap, though, remember Hood's warning to go cautiously.
How to buy an old house
Buyers weren't exactly flocking to the 1905 Queen Anne home Marjorie Ellena now owns in Richmond,Va. Perhaps it was the large hole left by a bus that had driven through an exterior wall that was scaring people off -- but not Ellena. There was something about the house that captured her and helped her look past the gaping hole.
"You go after what you like," Ellena says about historic properties, even those that might frighten away most buyers. "It's the call of the old house."
Scot Hinson's House: Before
That sentiment must run in the family because her younger brother, Scot Hinson, bought a falling-down house in Savannah, Ga., that had nothing of the interior intact, Ellena says.
Ellena admits it does take a certain person to buy an old house. And it takes a certain type of realtor to help such people in their search. She says she met with resistance and confusion when she went to a realtor's office looking for an old home.
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