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10 Pros and Cons of Buying a Historic Home

Ryan FitzgeraldRyan Fitzgerald
Sep 3, 2024 8 min read
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10 Pros and Cons of Buying a Historic Home
Chapters
01
Pro: Tax Incentives 
02
Pro: Preserving History 
03
Pro: Higher Return on Investment
04
Pro: Financial Assistance For Renovations 
05
Pro: Joining a Community Full of Character 
06
Con: Stricter Regulations 
07
Con: Complicated Renovations 
08
Con: Difficult To Arrange Financing and Insurance 
09
Con: Costly Repairs 
10
Con: Not as Safe or Energy Efficient 

Buying a Historic Home: Pros and Cons 

What are the benefits and disadvantages of buying a historic home? Here are ten pros and cons of living in a historic house! 

If you are moving and thinking about buying a historic home instead of a new build, there are pros and cons to consider. Historic homes are unique and are often in high demand as long as they are in good condition. Most homebuyers who purchase historic homes do so for their historical significance and the hopes of making a good investment

According to the National Register of Historic Places, to be recognized as a historic property, a home has to be at least 50 years old and associated with significant historical events or individuals. The house must also look like it did in the past and represent substantial architectural and landscape history. 

Owning a historic home offers tax incentives and financial assistance, which are significant advantages for homebuyers. However, historic homes tend to have older problems and costly repairs, which is not appealing to most people. 

North Carolina has many historical sites and no shortage of beautiful historic homes with lots of character and charm. Raleigh has several historic districts, over 170 historic sites, and older neighborhoods that are sought-after for their classic architecture and personality. 

As long as you are willing to deal with the disadvantages that owning a historic home might bring, it can be a wise investment for the future and can lead to homeowners feeling happy, knowing that they are helping preserve an important piece of history. 

Check out these advantages and disadvantages of buying a historic home 

1. Pro: Tax Incentives 

One of the most significant advantages of buying a historic home is the many tax incentives associated with it. Most states offer tax incentives for rehabilitating historic properties, and these incentives are easy to obtain. 

Once your home has been designated a historic property, the Federal Historic Preservation Tax Incentive allows homeowners to get 20% back on the money spent renovating it. Applications for pending renovations are available through the National Park Service, and this tax incentive will come into effect as soon as the application is approved. 

It is important to note that this tax incentive has catches, such as the requirement that the property generate income to benefit from it. The Federal Historic Preservation Tax Incentive is a famous tax break for bed and breakfasts. 

Renovations to the historic home must also be consistent with the property's historic character to be eligible for the 20% credit offered through the program. Considered one of the community's most successful and cost-effective revitalization programs, all applications can be fully submitted online. 

Another tax incentive to take advantage of is the State Tax Credit. The North Carolina State Historic Preservation Office offers rehabilitation tax credits for owner-occupied residential properties. Homeowners may receive a 15% state tax credit for qualified properties undergoing rehabilitation. 

Here is what is required to become eligible for the State Tax Credit: 

  • The property must be listed on the National Register of Historic Places 
  • The rehabilitation must exceed $10,000 within 24 months 
  • Rehabilitation expenses are limited to $150,000, with a maximum tax credit of $22,500
  • One rehabilitation project can be claimed once every five years for this program 
  • All rehabilitation work must meet standards set in place by The Secretary of the Interior's Standards For Rehabilitation

2. Pro: Preserving History 

Once you buy a historic home, you ultimately take on the responsibility to protect its historical significance. If you love history, purchasing a historic house in a vibrant neighborhood is a great way to embrace its character and uniqueness. 

Buying a historic home can be very rewarding for homeowners, especially if they want to help maintain and protect the history of the community in which the house is located. Historic preservation can go a long way in protecting home values and maximizing tourism in a specific area. 

Raleigh has many historical sites throughout the city and its surrounding areas and no shortage of historic homes that have been maintained and rehabilitated throughout the years. 

Historical Victorian home with wide front porch sitting on lots of land

3. Pro: Higher Return on Investment

Interestingly, historic homes tend to have a higher appreciation rate as long as they are well-preserved and located in a well-maintained historic district. In addition to offering a higher return on investment, historic properties offer a unique appeal and a cool piece of history that many people are interested in having. 

Often appreciating faster than some newer homes in the same area, historic homes tend to be less affected by market turndowns, which further adds to the value. Sometimes, a historic property can be valued as much as 26% higher than other homes in the same neighborhood and community. 

4. Pro: Financial Assistance For Renovations 

Renovations are a must when purchasing a historic home, and luckily, many states offer grants, loans, or funding matching programs to assist homeowners looking to renovate their new property.

In North Carolina, check out these grants available for historic home renovations: 

Check out these loans available for historic home renovations: 

beautiful historic home with front porch and large shaded trees

5. Pro: Joining a Community Full of Character 

One of the best benefits of purchasing a historic home is joining the community that comes with it. Character and charm are hard to come by nowadays, and most historic homes are found in neighborhoods that embody and celebrate the past through beautiful architecture. 

Historic districts are significant today because they help preserve history and are known to create neighborhood stability. They also have less owner turnover because homeowners consider these properties a good investment and want to live there for a long time. 

Many new neighborhoods are popping up all over Raleigh and the surrounding Triangle area, but sometimes, these communities lack the distinct character and unique charm that historic districts have. 

6. Con: Stricter Regulations 

Historic homes are landmarks, and when found in a designated historic district, homeowners are expected to follow strict regulations. In North Carolina, the Historic Preservation Ordinance safeguards the property's heritage and preserves districts and landmarks important to culture and history. 

Unfortunately, these strict regulations limit property owners' rights in the name of preservation and rehabilitation. Most historic districts require building and alteration restrictions on the property, meaning significant changes to the historic home can not be made. 

The government may also need to review paint colors, lighting choices, and windows, which can limit homeowners' preferences. 

7. Con: Complicated Renovations 

Not only are renovations in a historic home costly, but they tend to be complicated, especially if they are related to a structural problem. Issues are bound to arise when foundations settle over time, and with historic building materials in the picture, things are only sometimes a quick fix. 

Wooden structures, original iron piping, and bare wire electrical lighting need to be replaced with updated materials. Not only can the budget be an issue when making these renovations, but often, historic home renovations have limitations on what can be changed and restored. 

two men working on home renovations inside of a historic home

8. Con: Difficult To Arrange Financing and Insurance 

It can be difficult to arrange financing and insurance on a historic home since it can be hard to provide the proper information and estimations needed if the house is very old. Most lenders require additional loan guarantees, such as specific information about the deed or historic designation, before qualifying a property for a loan. 

While certainly possible to obtain, sometimes older homes may not meet the specific requirements for typical VA or FHA loans, which many homebuyers apply for. 

Insurance may also be difficult to arrange since most properties, unlike modern homes, require special insurance. Built with expensive and difficult-to-replace materials, it can be difficult for insurance companies to calculate specific replacement costs when needed. 

Sometimes, historic homes can be insured on a standard home insurance policy. Still, they often require a unique policy if they are listed on the National Register of Historic Places or recognized locally as historic properties. 

9. Con: Costly Repairs 

Most, if not all, historic homes will need repairs and rehabilitation. Unfortunately, due to their age, these repairs can be costly. Some historic home requirements require using historically authentic materials to make these repairs, further adding to the cost. 

Some homebuyers avoid purchasing historic homes because they can be expensive to fix compared to newer properties on the market. Older homes are known to have hidden problems that can arise at any time and lead to expensive repairs, especially if there are structural issues, such as a roof that needs repair

beautiful historic home with red roof and front porch

10. Con: Not as Safe or Energy Efficient 

While it depends on the age of the home, most historic homes are not considered as safe or energy efficient as modern homes due to older building materials and the lack of contemporary insulation that homes have now. 

Older homes also have multiple safety hazards, including asbestos in insulation and wall patching, lead paint on the walls, faulty wiring systems, or the presence of carbon monoxide in older heating systems. 

These problems can be annoying, but they can be easily fixed during rehabilitation. The good news is that most historic homes were built with some energy-saving qualities that can be updated and maintained. 

American flag hanging out front of a historic home with brick sidewalk

Methodology 

We used data and information from the Raleigh Historic Development Commission, the National Park Service, and Bankrate to determine the pros and cons of buying a historic home. 

FAQs 

Is buying a historic home a good investment? 

Historic homes are charming and tend to have a higher property value due to their historical significance and demand in certain districts. Once you buy, repair, and hold on to a historic home, it can be an excellent investment. 

Is it worth upgrading an old house? 

As long as you are willing to put in the work and spend the time renovating, upgrading an old house is worth it. Often cheaper than building a new house, renovating can help you preserve the home's history while creating a unique living space that fits your needs. 

Do older homes hold their value? 

Older homes are known to hold their value, which is why they are considered a good investment, especially if they are renovated and located in a well-established neighborhood. 

Pros and Cons of Buying a Historic Home - Final Thoughts 

If you decide to look for a historic home to buy after considering the pros and cons, our team of experienced and knowledgeable Real Estate Specialists is here to help. The experts at Raleigh Realty are prepared to help you find your dream home in Raleigh and the Triangle. Please feel free to contact us today. 

WRITTEN BY
Ryan Fitzgerald
Ryan Fitzgerald
Realtor

Ryan Fitzgerald is a top Realtor®, founder and owner of Raleigh Realty, one of the Triangle’s fastest-growing and most innovative real estate brokerages. Driven by a mission to be the best—not the biggest—brokerage in Raleigh, Ryan has built Raleigh Realty into a firm known for its cutting-edge marketing, high-performing agents, and culture rooted in collaboration, growth, and excellence.

Raleigh Realty

Under Ryan’s leadership, Raleigh Realty has become a top boutique brokerage in Raleigh-Durham, serving clients across Wake County and the surrounding areas. Raleigh Realty stands apart for its:

  • Top-Tier Agents – Every Realtor on the team is hand-selected for their skill, professionalism, and client-first approach. Raleigh Realty isn’t about quantity—it’s about quality.

  • Award-Winning Website – RaleighRealty.com is consistently ranked among the best real estate websites with incredible user experience, cutting-edge IDX technology, and hyper-local guides that help buyers and sellers navigate the market.

  • Inbound Lead Generation – With a strong focus on SEO and digital marketing, the brokerage generates a steady flow of organic leads, giving agents the opportunity to grow thriving businesses.

  • Supportive Culture – Ryan emphasizes mentorship, accountability, and autonomy—no micromanaging, just the right systems and tools for agents to succeed.

  • Community Focus – From neighborhood spotlights to relocation guides, Raleigh Realty is committed to being a resource for both buyers and sellers as they make one of life’s biggest decisions.

The firm continues to expand its reach, with the goal of 100 agents and $1 billion in annual sales volume by 2030—all while staying true to its boutique, client-centered values.

Awards & Recognition

Ryan already has notable public credentials and prestige:

  • He has been featured in outlets such as Forbes, Wall Street Journal, U.S. News, among others (as mentioned on the site).

  • Realtor Magazine named him a “Top 30 Under 30” in the country (as noted on his Raleigh Realty page).

  • Raleigh Realty is widely acknowledged in the local real estate community for its digital prowess and thought leadership.

  • The company is consistently ranked among the top real estate firms in Raleigh and is known for having one of the highest-traffic real estate websites in the region.

Community Involvement & Giving Back

Ryan’s leadership extends far beyond the closing table. He has built Raleigh Realty to be a company that actively gives back to the community and invests in making Raleigh a better place to live.

  • The Green Chair Project – Ryan and Raleigh Realty proudly support The Green Chair Project, a local nonprofit that provides essential furnishings and household items to families transitioning out of homelessness, crisis, or disaster. By partnering with this organization, Ryan helps ensure families have the comfort and dignity of a furnished home.

  • Food Donations & Drives – Raleigh Realty regularly organizes and contributes to food donation efforts, partnering with local pantries and organizations to help fight food insecurity across Wake County. These efforts bring agents, clients, and neighbors together to support those in need.

  • Local Events & Client Appreciation – Raleigh Realty hosts family-friendly gatherings such as pumpkin patch outings, coffee + donut socials, and seasonal celebrations designed to strengthen neighborhood bonds.

  • Supporting Schools & Youth Programs – Ryan partners with local schools and youth organizations to provide resources, sponsorships, and mentorship opportunities, ensuring that the next generation has access to growth and guidance.

  • Small Business Advocacy – Raleigh Realty proudly highlights and partners with local small businesses, amplifying their visibility and reinforcing Raleigh’s reputation as a vibrant place to live and work.

For Ryan, success is measured not just in sales, but in the lasting relationships and community impact Raleigh Realty leaves behind.

AgentLoft – Powering the Next Generation of Realtors

Ryan is also the visionary behind AgentLoft, a SaaS platform designed to help Realtors nationwide build their brand and generate leads. AgentLoft websites combine IDX technology, SEO expertise, and AI integration to give agents the competitive edge they need.

Personal Mission

As a proud father to his daughter Emma, Ryan’s mission is bigger than business. He’s dedicated to building a brokerage and a platform that create opportunity and stability for families, clients, and agents alike. His approach blends entrepreneurship with empathy—ensuring that Raleigh Realty continues to grow not just in sales volume, but in reputation, trust, and impact.


👉 Whether you’re buying or selling a home, or you’re a Realtor looking for the right brokerage to grow your business, Raleigh Realty—under Ryan Fitzgerald’s leadership—offers the expertise, technology, and community-minded culture to help you succeed.

Chapters
01
Pro: Tax Incentives 
02
Pro: Preserving History 
03
Pro: Higher Return on Investment
04
Pro: Financial Assistance For Renovations 
05
Pro: Joining a Community Full of Character 
06
Con: Stricter Regulations 
07
Con: Complicated Renovations 
08
Con: Difficult To Arrange Financing and Insurance 
09
Con: Costly Repairs 
10
Con: Not as Safe or Energy Efficient 

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