Realtors Stefan Walker and William Rippe of Alain Pinel Realtors in Los Gatos have sold numerous historic homes over the years. While these properties have much to offer, they also come with some unique characteristics that can create challenges for the homeowner.

"Older homes have long been popular with Silicon Valley buyers due to their unique architecture, quality craftsmanship, and overall charm that cannot be found in more modern construction. They've been gaining in popularity in recent years as the neighborhoods surrounding the old downtowns become increasingly popular," Walker said.

The appeal of historic homes for many buyers is the idea of owning a piece of local history.

"There is just something really neat about seeing your house in a 100-year-old photo or imagining what life was like within its walls in years past," Walker said. "Many historic homes have been extensively renovated and, especially when the renovation is done to carefully retain the original character of the home, the result gives the homeowner the opportunity to live in a historic home with all its inherent charm, yet enjoy all the modern amenities available in new homes."

Walker believes some historic-home owners gain satisfaction by taking part in the saving and restoring of a historic structure. While there is also the potential for tax savings through the Mills Act, Walker cautions buyers and sellers to be wary with older homes. Older homes often have more deficiencies than newer ones due to their older foundations, framing, and electrical, plumbing, heating and roofing systems. They may also contain banned substances such as lead paint and asbestos.

"All these factors can lead to complex disclosure issues, and great care needs to be taken to ensure that disclosures are done accurately and completely. We also recommend that a full battery of inspections be obtained by the seller for disclosure purposes to show good faith," Walker said.

Buyers also need to be careful when looking at any deficiencies due to antiquated components, questionable modifications or wear and tear in an older home. Since many older homes were built by the owners themselves, there could be varying degrees of construction knowledge and experience. Many homes were also built before code enforcement and standardized construction techniques were in place.

"If the property is actually on the historic registry, the buyer needs to be aware that in most cases, the city will have a big say in what can and cannot be done with the property in terms of remodeling, renovation and additions. This should be explored in detail during the buyer's due-diligence period," Walker said.

Perhaps the best recommendation for homeowners considering the purchase of a historic or older home is to find a Realtor with experience with historic homes. "The agent needs to coach the seller through the disclosures and help the buyer with an inspection strategy. Agents with experience know where to look and can anticipate and eliminate issues, bring critical factors to light and eliminate future exposure for both parties," Walker said.

Some of the restrictions required of historic-home owners seem illogical to new homeowners who want to renovate their homes. During the process of helping clients purchase historic homes, Realtor John Leslie of Alain Pinel Realtors in Los Gatos learned that owning a historic home can be an expensive proposition. Thanks to required retrofitting for earthquakes, some homes may need to be raised off their original foundations to meet new earthquake standards at a sometimes-exorbitant cost.

"Historic homes most of the time are under the protective jurisdiction of historical committees, who can sometimes be inflexible when new homeowners want to update their homes," Leslie said.

For instance, the whole house could be infested by termites and need new support beams and floors. The logical approach would be to demolish and start over, but Leslie says most historic committees insist new owners "rework, adjust, and revise" the existing structures.

"The best historic-home buyers are students of history. They do their homework and know what they are shopping for. They know that there are drawbacks with Victorians that are part of the charm, including no insulation, small rooms, knob and tube wiring, dirt floor basements. These buyers love to restore these old historic homes and don't try to turn the home into Neo-California Classic, a home with the original exterior and a contemporary interior," Leslie said.

For Realtor Dennis Byron, also the owner of a home built before 1945, the subject of historic homes goes back to 1978 when he sold his first historic home. At the time, the Hayes Mansion was a rundown building on the brink of being torn down, but was saved from the wrecking ball and restored. Byron also sold the Steinbeck Estate on Brush Road where The Grapes of Wrath was reportedly written by the author. Over the years he has dabbled in many historical efforts, including the main downtown section of Coulterville, as well as the Tobin Clark Estate designed by famous architect David Adler.

"My own house was of historical interest and needed to be reviewed by the historical committee in Los Gatos before I could change it. In my case, I had to tear it down and start over. The process has gone from a 'who cares' attitude in the '60s and '70s to a 'don't mess with history' attitude," Byron said.

"The historical controls are much tougher today and rightfully so. Too many of our historic properties were lost in the haste to build housing for the masses that moved into the valley. It is good that today we slow down and take a look at preserving what we have."