Important News and Techniques for Today's Real Estate Market

This week's blog addresses a specific question about historic home pricing. 

Someone recently asked "Are homes in the College-Temple Historic District in downtown Newnan retaining their value?  It's difficult to compare values of renovated historic houses to new houses."  Here's my answer:

The true challenge in determining the value of a specific historic Newnan home lies not so much in comparing it to new homes as it is in comparing it to other historic homes. As is the case in all real estate markets--In downtown Newnan, it's all about location, location, location. Whether your house faces Washington, College, or one of the "less restored" streets as you move farther away from The Square makes all the difference.

Another factor is condition. With historic homes, it's not enough that the house be in great condition. Any renovations must have been done so that the charm and character of the property were not lost. Examples would be: were the hardwood floors stripped and refinished or was laminate installed? Was the wood siding repaired and painted or was vinyl siding installed? To achieve optimal historic property value, laminate flooring would not be acceptable, at least not in the main parts of the home, and vinyl siding should be used very minimally (fiber-cement siding would be a better choice).

The diversity of the prices of the homes is unbelievable. I've done market analysis that included two historic homes within a two block radius of West Washington--one comparison property sold at over $200 / per square foot and the other at only about $50 / per square foot.

If you are thinking of buying a historic home, look to your realtor to guide you on concerns about value over the long term. Ride by the property at different times of the day and WALK from the property to the areas of downtown that you most enjoy. You should also DEFINITELY do a home inspection--not just to identify any defects or safety concerns, but to make sure that you'll know about the quality of any restoration work that might have been done to the house.

If you are thinking of selling a historic home, make sure that any value assessment of the home includes homes that are as similar to yours as possible. Don't consider comparables that are "on the other side of The Square" from your home, or in states-of-renovation that are very different from your home, to be included in the analysis if you can help it. It's very much a case of individual case basis, and you must do your homework.

One more note: I may be a little biased, but Newnan has one of the most charming downtown communities around! With the ecclectic shops, the great restaurants (who can deny that Fabiano's pizza is some of the best in the South and let's not forget that Andre's on the Square is an honest-to-goodness 5 star restaurant), the architecture of the old courthouse and the many churches, it's easy to understand why it's so beloved. This Old House Magazine even named Newnan's downtown in the top 100 in terms of appeal of our historic homes. Still, this area of the Coweta County market has not been exempt in feeling the downturn in the real estate market.

Good luck out there!