Large historical home

Vintage homes and those having historical significance are extremely complex to value, given the difficulty of determining replacement cost factors and calculating numerous sources of depreciation. Many layers of subsequent remodel and upgrades have to be evaluated. The additional beauty, charm, and historical significance of historical artifacts–architect, occupants, and historical events–may greatly enhance the value.

Appraisal of historic homes and landmark homes is not like appraising ordinary properties. For one thing, recent comparable sales (recent sales of similar homes in the same neighborhood) may be scarce or non-existent.  Imagine a historic home in a rural area, for instance. There are historic districts that can help provide some comparables, if there is enough sales turnover, but not all the properties in those areas are historic homes, or truly comparable. The unique features of some historic and landmark houses make distinguished distinctions even more difficult.

Historic homes, in fact, bring with them the need for experienced property appraiser to give you an accurate property appraisal. As with rural properties in general, appraisals of newer and older (not historic) homes make it common for appraisers to rely on extensive home sales records and the need to make extensive notations in the appraisal reports explaining the methods of valuing the home.  With a historic home, an appraisal report is an opinion of value.  To be as accurate as possible, in the case of historic home, the appraiser relies on more extensive research, documentation, and outright thoughtfulness and analysis in the process of building the report. They will also providing superior effective comparisons between often dissimilar properties, adjusting for those dissimilarities in the scope of the appraisal.

In the case of normal aged houses, comparable must generally be no more than 6-months old (and generally the more recent, the better), and as close in size, age, and architectural amenities to the home being valued as possible. With historic homes, a property appraiser might find themselves comparing a house from different style or social status.

Historic Appraisal

.With a more structured approach to an appraisal of an historic property, the property appraiser should take into consideration the following in his property appraisal:

•  Identifying and recording all surviving evidence for the original form and subsequent modifications to the building.
• Recommending structures or features deemed worthy of further recording and analysis.
• Identifying areas of known and potential archaeological interest within the site boundary.
• Providing information on the impact of the development on the known and potential archaeology.

Site Visits

Site fieldwork, comprising measured survey, digital record photography of the interior and exterior of the building, and black and white photography of the building exterior.

Building Condition

At the time the fieldwork is completed, take into consideration the condition of the exterior doors and windows.  If the building that is being appraised is boarded up (windows and doors), chances are the value will be low.  The outside is just a precursor of what you will see on the inside.

Because of the house’s age, take into consideration the health issues a potential buyer will have to mitigate.  At a minimum, this might include mold and mildew, asbestos, and leaded paint.  There are most likely many more issues but these are the ones that jump to the fore front.

Research

When providing an appraisal for a historic home, you should most likely employ the services of a historian or do the research yourself.  This is such an important part because the value of historic homes is based on the age and era it was built.  Once that is determined, you can then build a case around how the value can be enhanced.