What is Maintenance? Be aware of what needs to be fixed, upgraded, or completely replaced. Keep track on when you bought your heating and or air-conditioning unit and water heater. Before the rainy season, clean your gutters/downspouts, inspect the roof, change the filters on your air intake inside your house, for example. These low-cost tasks can help prevent costly repairs in the near future and will help your appliances get to their life expectancy, thus saving you a lot of money. Don’t skimp on fixing things now, because in the future it may be very expensive.
Can Upgrades Increase value? Upgrades and replacements can be energy saving, for example, but depending on the upgrade, can increase the value of your home. Also, keep all the receipts on purchases and labor costs of an upgrade On your Do It Your Self projects (DIY) keep the material costs, and especially those receipts from your favorite contractor and/or scan them (receipt ink tends to fade over time, believe me) and save them on your computer. The upgrades can be used to increase your property’s tax basis. It’s especially important for home sellers in the SF Bay Area who have had a big increase in their home value, some from $1 million to $2 million for a $300,000 purchase, for example. Needing to minimize your tax liability when selling is crucial. Let me know if you would like a copy of the National Association of REALTORS® Remodeling Impact Report, which shows remodeling projects that will cover what you pay to have them done and a “Joy Score” of how this impacts your satisfaction with the upgrade.
Ask The Professionals. Not only in working with me as your REALTOR® when buying or selling your home, It’s important to get professional advice from your Certified Public Accountant (the people doing your taxes). The licensed contractor is a good point of contact before any work is planned, and I will work with them to make sure you not only not over pay, but that it’s worth the work you put in to maintain your asset. Asking us will help you manage perhaps the biggest asset you have and help you make informed decisions now that will impact you in the future.
Keep Good Records. As I mentioned in point #2, keeping track of what you spend on your home is most important. From the day you sign the closing purchase papers on your home, keep all the records in one place. You can divide up costs and documents into separate folders such as “Interior Home Renovations” “Exterior Home Renovations”, “Landscape Upgrades”, “Mechanical Purchases”, for example. This is especially important on labor and material costs on what you have spent on your home and will help you pay less in taxes when it comes time to sell your favorite asset.
