Want to Sell Your Historic House and Keep it Protected?
Thinking about selling your historic (old) home and hoping to find new stewards to honor its history, architecture, and craftsmanship? This is a common sentiment we hear from homeowners, so we’ve compiled some resources to help! Let’s explore legal approaches as well as recommendations that are not legally binding.
Historic homes seen in Elmira, NY
Legal Approaches
Local Historic Districts
Local Historic Districts are governed by local ordinances which generally protect historic structures from demolition and inappropriate alteration. Each local district varies in terms of what is regulated and is guided by what is important to the local community. If your home is within a local historic district, you may have protections already associated with your property. Contact your local government officials, visit your municipality’s website to see if there is mention of historic properties, or speak with someone at the New York State Historic Preservation Office (NY SHPO) Community Engagement Unit. If there is no local district/ordinance, consider advocating for one along with other passionate residents. Remember, only a local ordinance can protect a property — National Register Districts and individual National Register listings do not have the same level of protection as local designation.
Preservation Easement (aka covenant or restriction)
To the extent local preservation laws do not exist or cover a property, an easement may be the only protection against demolition or alteration of a property’s significant historic resources.
Potential tax benefits of an easement
Per New York Internal Revenue Code (IRC) 170(h), owners of land in New York whose property is restricted by a conservation easement may be eligible to receive an annual, refundable tax credit equal to 25% of the combined town, county, and school taxes paid on the land during the previous tax year. One qualifying category of conservation easement under this code is “historically important land area or a certified historic structure”. The tax credit is capped at $5,000 per year for each qualifying landowner.
Easements are most often held through regional or local nonprofit organizations in each state and can offer protection to properties that have historic, architectural, or archaeological significance. In addition, they can be used to preserve important natural land values that comprise the setting of historic buildings. Easements often require a stewardship fee payable to the organization/entity holding the easement.
These flexible tools are placed on a property voluntarily by the current owner and can be tailored to address specific characteristics of a property, the property owner's interests, and the mission, goals, and interests of the easement-holding organization. When an easement is created and the owner wishes to take an income tax deduction for the value of that easement, it permanently binds current and future owners to protect the historic character and values of the property. Term limited easements are also an option but may disqualify you from a tax benefit. Potential tax benefits of an easement should be discussed with an accountant or tax attorney.
Finding an organization that holds easements in New York State can be a little tricky, and we unfortunately do not have information on active preservation easement programs in New York. We suggest asking your regional preservation nonprofit if they hold preservation easements or if they know of any organizations that do, and a quick Google search for “preservation easements in New York State” + your county.
For further reading on easements:
Deed Restrictions
It’s possible to have a deed restriction (aka covenant) to protect historic resources outside of an easement program. These are less common, generally do not have a monitoring/maintenance plan in place that an easement would have, and enforcement can become challenging and costly. Deed restrictions can be enforced legally through the courts, by the person/entity benefiting from the covenant. Despite these drawbacks, such restrictions can be thought of as a middle ground between not doing anything to protect historic resources and setting up an easement, which may be cost prohibitive. It is also challenging to find an organization willing and able to hold an easement on your property. If you go this route, be prepared to step in to enforce the restriction. To see if a deed restriction is the right course of action for your home, you’ll want to consult a real estate attorney in New York State.
Other Recommendations
Although most folks seeking perpetual protection of their historic home look to legal protections, in cases where that is not possible, check out these suggestions for selling your home to an owner that will appreciate it for its character, architecture, and history:
Don’t overlook the opportunity to educate prospective buyers on potential financial incentives of historic properties in New York State, in the form of Historic Tax Credit Programs. Properties may qualify for a 20% NYS homeowner historic tax credit or 20% NYS historic tax credit for income producing property, and a 20% federal rehabilitation tax credit for income producing properties. To see if your property may qualify, contact the appropriate NY SHPO tax credit unit.
Engage a realtor with an appreciation of historic properties and an interest in marketing the home’s unique and historic features. Check out this list of professionals with an affinity for historic homes. With any realtor, let them know your priorities.
Prepare language for the real estate listing that embodies what you would like to see from a buyer. Consider including language such as: "seller will evaluate offers in part based on purchaser’s plan to restore/maintain property to the Secretary of the Interior’s Standards by maintaining the home’s historic, architectural, and cultural values."
Be prepared to weigh what is most important to you. Is getting top dollar most important? Is seeing a property’s preservation most important? Read those “love letters” a potential buyer may send you along with their offer. Money is important and necessary, but only you can decide for your specific situation if a slightly lower offer may be a better choice for the continued care of your historic property.
Marketing your house. Recognize that in addition to the standard MLS listing (realtor.com, redfin, zillow), you’ll want your historic home advertised in places that attract historic home enthusiasts. Consider submitting your listing to:
o Also be sure to check with your regional preservation nonprofits and volunteer groups, statewide preservation nonprofit (that’s us!), and search for other more local groups in NYS to see if they may be able to highlight your listing through a blog spotlight, e-blast to their membership, or social media channels. It never hurts to ask!
Whatever methods you end up using to encourage preservation of your historic property, your stewardship will be appreciated by the generations that follow. The preservation of our communities, cultures, and stories of those that came before us can be told no better than through the visual reminders of their presence.