Time and money seem to be the overwhelming investments needed, along with a large dose of patience. Realtor Dale Klippel of Prudential California said he has had buyers shy away from historic homes after they learn all the ramifications.

"All that I'm familiar with is that you must keep them in their original looks and with very little updating allowed, including the changing of color in or out. That's why I've had buyers back out of the deal. It's a lot of cash outlay for all the restrictions placed on the buyer," Klippel said.

Rules seem to be the deal breaker for many potential homebuyers of historic properties. Betty Boatman of Alain Pinel Realtors cited a recent example of a Stanford professor in Mountain View who wanted to make his historic home wheelchair-friendly and was having difficulty meeting the city's historic home guidelines. "From my perspective, there are no positives, only negatives. Rules, rules, rules, and it only gets worse," Boatman said.

Before making an investment in history, the potential homebuyer needs to consider certain questions. What regulations govern local historic buildings and districts? Does the house need extensive restoration? Are original or substitute materials viable for repairs? Are craftsmen who are knowledgeable about historical materials and building systems available? How will the house be appraised?

Obviously there are significant differences between a historic house and a new one. Consumers will want to research just how much restoration is needed and how much the restoration will cost. That might include uncovering any possible environmental problems not typically found in new construction, such as the presence of asbestos or lead paint. Knowledge of any structural problem and the time and money needed to fix it should not only influence the decisions of whether to buy but also how much to offer.

For some homebuyers, the advantages of owning a historic house often outweigh the work that goes into finding and securing one. There is a rewarding sense of history in the unique detailing and meticulous craftsmanship found in historic homes, as well as the satisfaction of restoration.

There may also be financial benefits for historic homeowners, including reductions in property taxes and adjustments to assessed value, to state income tax credits and property tax freezes for qualified rehabilitation and restorations. The National Trust for Historic Preservation reports that 37 states and the District of Columbia have laws that provide individuals with incentives for owning historic properties.

Not every old home can be classified as historic. A historic house is an example of the cultural or physical development of a community, state or the nation due to its architecture or association with an important historical figure or event. If a home does qualify as a historic property, it may be listed individually or as part of a historic district. The listing of a building or district in the National Park Service's "National Register of Historic Places" provides public recognition of its importance but does not interfere with an owner's right to alter, sell or determine how an individual property may be used.

However, local and state government preservation organizations may have guidelines to follow. They may also assist owners who want to pursue a historic designation. Even when the historic building meets the designation criteria, it will not be listed if the majority of property owners in a district object. In this case, the building is put on an "eligible" list should the objections be overcome in the future.

There are several properties listed in the National Register of Historic Places in Los Gatos, including the Los Gatos Historic Commercial District, Forbes Mill Annex, Kotani-En Garden, McCullagh-Jones House and the Hung See San Fong House. In Saratoga, historic properties include Paul Masson Mountain Winery, Miller-Melone Ranch, Villa Montalvo and Welch-Hurst.

The National Trust for Historic Preservation provides a wealth of information on its website at www.nationaltrust.org in the "Historic Homeowner" area. In addition to historic homes that are for sale, the site also provides information about restoration.

"Whether you are looking for a historic home or any specific kind of property, it's always wise to find a professional and knowledgeable Realtor to help you in the process," said Judy Jarvis Ellis, president of the Silicon Valley Association of Realtors. "There are many considerations when buying an older home that can add to the cost. A Realtor who knows the local community and the necessary historic guidelines can aid in the process and save time and money in the long run."