Selling an old house: How-to for property owners.
A recent continuing education seminar put on by the Preservation Alliance of Minnesota and Portland OR addressed how best to market old houses. It was reported on recently on the Finance & Commerce website.
“Owning and selling a historic property can be a gratifying – and lucrative – experience for property owners. But the process of determining a property’s historic status and then properly marketing it to reflect that status can make the difference between a big sale and an ordinary one.”
A key factor is that of simple economics of supply and demand. There is an ever-expanding supply of new home construction for that larger share of the market that appreciates new construction.
For that smaller but growing market for quality old houses with character in stable and improving neighborhoods in convenient proximity to community amenities, that supply is diminishing in many areas but growing to meet demand in others as property owners renovate and restore their homes.
What are best practices for selling old houses in historic districts?
- Doing your homework on the house. “All of that allows you to create a story around the property.”
Personally, I love stories. And old houses and neighborhoods have stories that simply don’t exist in suburban and new construction. Knowing the story of the house and effectively telling it adds real value to your home.
- “Some key selling points for a historic property, she said, are associated tax incentives…”
If your home is already within a historic district up to 25% of approved work can be recouped. This is significant. If though your home is outside the historic district your home may be individually registered or eligible. Marketing that your home as within a historic district communicates there are higher standards. There are some safeguards that help protect the home and neighborhood from some things that can diminish property values.
There are a number of additional points the presenters tough on. Interesting to note they emphasize how originally intact is the home.
“…be sure to highlight the property’s original elements, Davis said. Is the home’s character still intact? Are the moldings and fixtures original? Has the building been restored, as opposed to remodeled?”
Too often we see a short-sighted rip-n-replace mindset when home maintenance comes into play. This is particularly prevalent among flippers and some residents who don’t fully realize they’re actually degrading their own property. If a potential buyer is interested in an old or historic property in the first place it’s most likely they also have an appreciation for the original fabric of the house. Even if shabby and in need of repair, as long as it still exists restoration is still an option. Once removed though its often cost prohibitive to replace again with the grade of materials that have been removed…. if it’s even available at any price.
Given the current housing situation if you live in an old house the linked article on how to sell old houses is likely good information to have. Wanting to maximize your return on your home though is not unique to a slow housing market and will remain true later when things improve.