This article was published on: 07/01/2004
 
This sold house
Rewards of Historic Preservation

Expert practitioners share their secrets for how to market and sell historic properties.

BY ROBYN A. FRIEDMAN

Donna Baker was a high-level secretary her entire career until she found herself jobless, a victim of the dot-com bust. Spotting a niche in her local community, Baker—a preservation advocate and long-time fan of historic homes—decided to convert her avocation to her vocation. She became a real estate sales associate specializing in marketing and selling historic properties.

Good decision. Since getting her license three years ago, Baker, e-PRO®, a sales associate for Century 21 Adams & Barnes in Monrovia, Calif., has become the top-producing practitioner in her office. "Needless to say, it was a great niche to explore," Baker says. "I didn't have to establish myself because my reputation and 15 years of being in the preservation community helped me."

Many real estate professionals are following Baker's lead, either out of a love of older homes, a desire to preserve our history, or an attempt to capitalize on the growing desire of aging baby boomers to seek refuge from an unsafe world in a home with character.

"Historic buildings tell the history and the unique qualities of a community," says Minnette Boesel, broker/owner of Minnette Boesel Properties Inc. in Houston and a specialist in historic properties. "They tell where you came from and where you're going."

Boesel got into selling historic properties as a result of her involvement in the downtown revitalization of Houston. "I got started doing real estate by wanting to make change in our downtown area and in our historic area, to show that there is value in historic properties," she says. "It's very exciting."

According to the U.S. Census Bureau, the nation's housing inventory is relatively young. Just 8.3 percent of all American housing was built before 1920, according to 2001 statistics. These "older homes" represent about 10 million housing units. Not only does the uniqueness of these older homes make them desirable, but with the national median price of new single-family homes now close to $200,000, older houses can allow more people to become homeowners at more affordable prices. Of course, not all older homes are a bargain.

A historic designation also raises a property's value, said Pauline Mohr, a member of the Lake Forest Preservation Foundation in Lake Forest, Ill. "There is quality found in historic homes—the quality of design, material, and handcraft—that simply doesn't exist in many of today's McMansions," she says. "There are plaster walls, first growth timber and decorative elements created by craftsmen rather than rolled off of an assembly line."

According to the National Register of Historic Places, historic properties are generally at least 50 years old, but can be younger if they contribute to or represent an important part of American history, architecture, or culture, among other criteria.

But specializing in marketing and selling historic properties comes with its own set of challenges, as anyone interested in delving into this niche should know. They include:

• Marketing. Historic properties are unique and appeal to a specialized buyer. "You need very specialized marketing for these types of houses," says Christine Suhadolnik, a sales associate with Weichert, REALTORS®, in West Chester, Pa. Marketing historic properties in the newspaper or by postcard will rarely work. Suhadolnik advertises her listings in magazines read by historic-property buffs, such as Preservation News and Old Home Journal, although advertising in these publications is expensive. She also advertises on Web sites that attract historic-home buyers.

• Valuation. Unlike cookie-cutter houses in tract developments, historic properties can be a challenge to value. Since each property is unique, it's often difficult to find comparable sales. In addition, historic homes often have an inherent value to their buyers that isn't reflected in comps. Dave Johnston, GRI, broker/owner of Antique Properties Inc. in Bowling Green, Va., has seen historic houses underpriced by real estate professionals not familiar with their value. He had a listing last year that had been appraised at $295,000. Based on his knowledge of local historic properties, however, Johnston felt the true value was closer to $400,000, so he listed it for $395,000. "When local practitioners found out how much it was listed for, they thought I was insane," he says. But the house sold for $375,000. "One of the things that one has to learn—and a lot of this just comes from experience—is the fact that a historic property is inherently worth more than a new house in the same square footage," Johnston says.

• Time. Patience is indeed a virtue when it comes to selling historic properties. Johnston says that his average historic homebuyer is between 45 and 65 and is affluent. "They don't have to buy on a time schedule, and they're much more lackadaisical about their search," he says. One of his customers looked at 29 houses in five different trips before deciding on a house. "That's not atypical," he says.

• Condition. Historic properties are, by definition, old—many are more than 100 years old. As a result, they have issues that real estate professionals who deal with newer homes don't often face. Termite infestation is common, as are electrical and plumbing problems. That's why many sellers of historic properties prefer that their homes be marketed to those familiar with older homes; that way, they can avoid nit-picking during the inspection process because the buyers know what to expect. But historic properties are filled with surprises. Johnston has encountered snakes, raccoons, and even a turkey vulture in the course of showing his listings. Another occupational hazard: ripped clothing. "Old houses have all kinds of protrusions, and I'm constantly getting snagged," he says.

• Passion. "Marketing historic properties takes more time and requires a lot of patience," Suhadolnik says. "You really have to have a grand passion to pursue it."

• Education. Real estate professionals specializing in this niche need to understand old homes, their quirks, and the laws that govern historic properties. "They need to be able to speak with some authority about architectural styles," says Dwight Young, a spokesman for the National Trust for Historic Preservation in Washington, D.C. "Just telling a prospective buyer, 'This is an old house' doesn't tell him very much. But if you can tell him, 'This house is a great example of the Gothic Revival style,' it indicates that you have some specialized knowledge and care enough to learn about the buildings." In addition, salespeople and brokers need to be intimately familiar with the local, state, and national laws and regulations governing historic properties and historic districts so that they can properly disclose information on available tax credits and restrictions on ownership. Although many practitioners in this field have a background in history or architecture—Boesel has a master’s degree in historic preservation, for example—it's possible to bone up on architecture and history by visiting the local library, joining local preservation groups, and enrolling in relevant courses at local community colleges. The National Trust for Historic Preservation, in partnership with ERA Franchise Systems Inc., offers a seminar on American architecture and its origins several times a year across the United States. The class is open to anyone, and the cost is $49 for ERA affiliates and $139 for non-affiliates. More information is available at www.ERA.com/eraabout/nationaltrust.html or by calling 973/496-5628.

• Inventory. Even though the United States is more than 200 years old, its housing stock is still quite young. Fewer than 10 million housing units were built before 1920, according to the U.S. Census Bureau, and the vast majority of those older homes are located in the Northeast. It may sound obvious, but don't expect to specialize in historic properties unless there is a significant inventory of older homes in your local area.

• Marketing. Those who specialize in marketing historic properties say that buyers and sellers seek out their expertise. By marketing themselves as specialists, they distinguish themselves from other sales associates and brokers and gain a competitive edge. Baker targets her mailings to people in the preservation community. She also uses a descriptive tag line under her name in her marketing materials: "When You're Looking for Character."