Selling a 1920s bungalow or a midcentury colonial in Arlington and worried about leaving money on the table? You are right to be thoughtful. Historic homes demand a different pricing lens than newer builds because rules, costs, and buyer expectations all shift. In this guide, you will learn what matters most in Arlington, what to prepare before you price, and how to position your home to capture full value. Let’s dive in.
What “historic” means in Arlington
Arlington recognizes locally designated historic districts that sit under a zoning overlay. Exterior changes in these areas usually need review and a Certificate of Appropriateness from the Historical Affairs and Landmark Review Board before permits are issued. You can confirm status in the county’s overview of local historic districts and CoA review.
Local designation is separate from state and national registers. Virginia’s Landmarks Register and the National Register bring potential incentives and recognition, while county designation drives most day-to-day design review. Arlington outlines the designation process and its implications.
If your home was rehabilitated to preservation standards, you may be eligible for Virginia’s Historic Rehabilitation Tax Credit. The state program can cover up to 25% of qualified rehabilitation expenses on owner-occupied homes that meet thresholds and follow the Secretary of the Interior’s Standards. Learn more from the Virginia Department of Historic Resources.
Market realities in Arlington
Arlington has seen solid price performance in the broader Washington region through 2024 and into 2025, though results vary by neighborhood and property type. The Washington Post’s recent coverage of regional trends highlights continued demand, with inventory and condition shaping outcomes.
Buyer pools for historic homes are diverse. Some seek original details and stewardship, while others prioritize updated systems, low immediate maintenance, and proximity to transit and amenities. The takeaway for pricing is simple: condition, allowable changes under local rules, and near-term costs influence willingness to pay more than age alone.
How appraisers value historic homes
Appraisers still rely on the Sales Comparison Approach for owner-occupied homes, but historic properties bring unique challenges. Comparable sales are often scarce, so adjustments are larger and span a wider timeline or nearby areas. See a practical overview of unique-property valuation from Zen Appraiser.
Historic homes also require careful attention to “effective age.” Updates to electrical, HVAC, roofing, or structural elements can materially change value. When comparable sales are thin or craftsmanship would be costly to replicate, appraisers may lean more on the Cost Approach. The Appraisal Institute’s guidance notes describe these methods and how restrictions or easements factor into marketability.
Common pricing pitfalls
- Assuming a blanket “historic premium” without condition to match.
- Overlooking the effect of design-review limits on buyers who want extensive exterior changes.
- Underestimating insurance costs or lender requirements tied to older systems.
- Pricing without a clear accounting of deferred maintenance or environmental hazards, which invites retrades after inspections.
A pricing checklist to avoid leaving money
Use this checklist before you set your list price:
Confirm status and permits. Gather any Certificates of Appropriateness, recorded easements, and permit history. Arlington’s page on local historic districts and CoAs is a good starting point.
Get the right comps and expertise. Seek a broker or appraiser experienced with Arlington’s older neighborhoods. If comps are scarce, justify adjustments clearly and be ready to explain them to buyers and lenders.
Commission a pre-listing inspection with cost estimates. Unknowns reduce offers. A detailed scope and pricing for items like electrical, roof, structural, or environmental remediation helps you decide whether to repair, credit, or adjust price. If buyers may use renovation financing, review the FHA 203(k) framework to understand timing and documentation.
Document tax-credit eligibility or certified work. If your project met the Secretary’s Standards and you have Parts 1 to 3 documentation from DHR, include it. Buyers often value certified work because it reduces their near-term risk. See the state HRTC details.
Address insurance and financing constraints early. Historic-friendly insurance may carry higher premiums, and some carriers will require system updates. The National Trust shares useful insurance tips for historic homes. Flag any issues that could affect underwriting.
Package the story and the numbers. Prepare a one-page preservation packet summarizing status, approvals, upgrades, recent invoices, and any tax-credit documentation. Clear, attractive marketing with professional photography that highlights preserved details can narrow negotiation gaps.
Factor in inspections, hazards, and disclosures
Federal law requires lead-based paint disclosure for most homes built before 1978. Sellers must provide the EPA/HUD pamphlet and disclose known hazards, and buyers get a 10-day inspection window unless waived. Review the EPA’s summary of lead disclosure rules and buyer rights.
Older homes may present asbestos, termite, or wiring concerns that influence lender and insurer decisions. Expect buyers to price in remediation or ask for credits. Bringing documentation to the table helps you keep control of the narrative and the net price.
Use tax credits strategically
For owner-occupants, Virginia’s Historic Rehabilitation Tax Credit can reduce net renovation costs if your project meets program thresholds and standards. Federal 20% credits generally apply to income-producing properties, not owner-occupied single-family homes. Since credits take time and documentation, proof of completed certified work or a clear path to eligibility can boost buyer confidence. The program details live with the Virginia Department of Historic Resources.
If a preservation easement is recorded on your property, it must be disclosed. Easements can limit changes and narrow the buyer pool for heavy remodelers, but they may also provide tax benefits for donors and help preserve neighborhood character. IRS Publication 526 explains rules for charitable contributions, including conservation easements. Review the IRS overview and discuss with your tax advisor.
Positioning that maximizes value
- Price for condition and carrying costs. If systems are updated and work was done to preservation standards, price accordingly and show your documentation. If there is deferred maintenance, consider a price that reflects verified repair costs and present the estimates upfront.
- Highlight what buyers value. Many will pay for “character plus convenience” when near-term expenses are low. Show energy upgrades, new roofs or mechanicals, and professional restoration.
- Make it easy to say yes. A well-organized preservation packet, attractive staging, and clear guidance on design-review steps reduce perceived risk and keep offers strong.
The bottom line
You do not have to guess your way through pricing a historic home in Arlington. When you confirm status, document condition, understand incentives and constraints, and present the story with clarity, you earn buyer trust and protect your net proceeds.
Ready to price your Arlington historic home with confidence? Let’s craft the right plan and marketing package for your property. Connect with The Lyndsi + Matt Team to get started.
FAQs
How does Arlington’s local historic designation affect resale price?
- Local designation requires exterior design review, which limits some changes but can support neighborhood stability. The effect on price depends on your home’s condition, documentation, and buyer preferences.
What documents should I gather before listing a historic home in Arlington?
- Collect Certificates of Appropriateness, permits, any recorded easements, inspection reports with cost estimates, and rehabilitation documentation such as Virginia HRTC approvals.
Can I advertise Virginia historic tax credits to buyers of my owner-occupied home?
- You can share eligibility or completed certifications for the state credit, which may improve buyer confidence. Federal credits generally apply to income-producing properties, not owner-occupied homes.
How do inspections and lead rules impact my sale of a pre-1978 Arlington home?
- You must provide lead disclosures and the EPA/HUD pamphlet, and buyers get a 10-day inspection window unless waived. Known hazards or deferred items should be documented and priced in upfront.
Will buyers use FHA 203(k) financing for historic homes that need work in Arlington?
- Some will. 203(k) loans combine purchase and rehab under one mortgage and require specific inspections and timelines, which you should account for in offer terms and scheduling.
Do preservation easements make it harder to sell a historic home in Arlington?
- Easements limit changes and must be disclosed. They can narrow the buyer pool for major remodels but may appeal to preservation-minded buyers and can carry tax benefits for the donor.
