There’s nothing like living in an older home. Packed with personality, old-world craftsmanship, and distinctive architectural features, these properties have stories to tell – and, for prospective buyers, that’s a big part of an older home’s charm. But purchasing a home that is 75 or 100 years old or older also comes with unique challenges.
So, if you’re drawn to the history and beauty of older homes, go into the buying process with eyes wide open, starting with these considerations:
If you’re purchasing an older home, it’s essential to have a thorough home inspection. A true pro will be familiar with common issues in historic homes, from older wiring and plumbing to potential structural concerns.
We always recommend working with someone who’s inspected old, historical homes. Having experience and knowing what to look for in different homes is important.
After inspecting the property, an expert will provide a detailed report on the house’s condition and advise on potential repairs so you know exactly what’s needed and what could be on the horizon. At the same time, remember that surprises are almost guaranteed, whether hidden architectural gems or unforeseen repair needs. If possible, have a contingency budget and a flexible mindset as you close and move in.
While it goes without saying, old homes often require more maintenance than newer ones. Expect to spend about 0.8% of your home’s value on annual maintenance costs if you move into a pre-1960s property. Opt for a home built in the 2010s and your annual maintenance cost will be about 0.2% of the home value.
Landscaping can also add to ongoing maintenance costs. Older homes often come with mature landscaping that can be rewarding and challenging. For example, large, old trees might need professional care, and garden areas may require revitalization.
During your home inspection, additional considerations may emerge. Don’t be afraid to ask for clarification if you need it – or to ask your home inspector or real estate agent for recommendations. As local experts, they have significant experience working with area contractors, electricians, plumbers, and other specialists should you want to discuss maintenance needs in more detail.
Older homes may have natural foundational or structural issues from outdated construction methods or simple settling over time – all details that should pop up during your inspection.
Electrical and plumbing are other considerations that can impact renovations and even insurance premiums.
Older homes can carry a surcharge of 5%-10% of the annual premium depending on the age of the home and its systems. Pay close attention to the mechanical, electrical, and plumbing systems.
Materials now known to be hazardous, like lead paint and asbestos, were used in some homes built before the 1970s. In 1998, Illinois passed the Residential Real Property Disclosure Act to add transparency to real estate transactions. This act requires sellers to provide buyers with a reliable representation of the property – specifically major conditions, including hazardous materials.
Even with these measures in place, it’s important to thoroughly check for these materials as part of your home inspection – and, if asbestos or lead paint is present, to find out what risks exist and what the abatement process could look like.
Many older homes are not well-insulated and may have outdated heating and cooling systems. Consider the costs of updating these systems for energy efficiency and comfort. Central air, for example, is a common add-on to older homes. To integrate a central air system, though, a home needs to have the right ductwork – if your home needs ductwork replaced or installed, it will increase the overall cost of the new system by about one-third, according to some estimates.
Remember that renovating an old home can be more expensive than a newer home, especially if you plan to restore original features. Before finalizing a purchase contract, get a professional estimate of renovation costs. If those costs come back much higher than anticipated, you may want to try renegotiating the purchase price or other terms. Consult with your agent.
Renovations can also carry unexpected “soft costs” like permitting fees or other charges for bringing a home up to code. For example, “People are often caught off-guard when they buy an older house in Chicago and decide to add an extra bathroom. The city might make them update their water service, which can add $15,000 or even $20,000 or more to the project cost – and people don’t always budget for that.”
What is another thing that can impact renovation costs and timelines? Historical designations. Some older homes may be landmarked or have other historical designations that can restrict changes to the exterior and, possibly, the interior. Make sure you understand these restrictions and are comfortable with them before buying.
“Let’s say you want to replace the siding. If the Preservation Society says it’s got to be wood siding, for example, it’s got to be wood siding.” If there are double-hung windows you can’t swap for casement windows. You have to preserve the outside of the home to ensure it keeps that status.”
Some states and municipalities offer tax incentives for preserving and restoring historic properties. Investigate whether such incentives are available in your area and whether you qualify. The City of Chicago, for example, offers several economic incentives for rehabbing and repairing older buildings.
One of the joys of owning an old home is embracing its history. Take the time to research the house’s past and consider ways to preserve its unique character while making it suitable for modern living. Older homes often have unique layouts that might not align with the more contemporary homes you’re touring. Be open to non-traditional room uses or potential changes to make the space work for you.
Most importantly, remember to enjoy making an old house your home. Restoring and living in an older home can be a labor of love that, when done right, offers incomparable satisfaction and a unique sense of place.
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