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Daily Real Estate News | May 21, 2007 |
Restoring a Historic Home? Don't Expect a Profit
Experts in the restoration of historic dwellings say the process consumes much time, energy, and money; and home owners cannot expect to profit from the transformation.
It cost nearly $300,000 for Mike and Cindie Pappas to restore the 1866 farmhouse they purchased in Fairfax City, Va., in 2003 for $360,000. Despite its location outside of a historic district, Historic Fairfax City Inc. required the Pappases to preserve the home's Mansard roof and log floor joists.
Historic properties often are in poor condition, needing many new components and repairs; and home owners who abide by regulations requiring them to use original building materials and preserve the original architecture are forced to weed through mail-order catalogs, architectural salvage yards, and stores devoted to historical building products.
In addition to the hassle of obtaining building permits, approvals from local historic commissions, and state and federal tax credits, restorers must make personal sacrifices, with the Pappases living in a single room with their two kids during the three-year restoration process.
Flipping historic homes at a profit is virtually impossible, as Steve Habetz says the 1825 Greek Revival property in Fairfield, Conn., that he bought and restored for $2.55 million would not command $3 million on the open market.
Source: Investor's Business Daily, Brad Kelly (05/18/07)
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