To get their dream home, many California homeowners still have work to do after they close escrow.
California is the third state most likely to do a home renovation project. For homeowners in our state, a full remodel after purchasing a house is fairly commonplace.
For those remodeling, the average cost of a full-home renovation is $263,384, probably due in large part because 93% of homeowners enlist (and pay for) professional help. But, as you might assume, fully renovating your house adds value; the average home value after a full-scale remodel is $725,000.
Home repairs are an issue that many of us tend to dodge. We understand the necessity of the repairs; however when it comes down to it many of us do not have the time or money to fix everything.
The following list of minor home repairs could end up costing you big money if you continue to procrastinate:
Rodent incursions – Rats, mice and other vermin love to chew through insulation and wiring and are suspects in many house fires.
Soaring fuel bills – This is more than a pocketbook issue, since poorly functioning systems can cause deadly carbon monoxide buildup in your home.
Peeling paint – Paint is like a home’s skin. It’s the first line of defense against incursions by water and pests. Water that seeps into wood can lead to rot.
Flickering lights – It might be that the wiring in your house is dysfunctional or you have too many appliances hooked up to a single circuit. Either one can cause a fire.
A water leak – Left unchecked, leaks can lead to rot, dry rot, mold and termite infestations. Water can cause roofs to collapse, foundations to buckle and all manner of expensive repairs. Water-related problems can also get your home blackballed by insurance companies worried about mold-related claims.
Don’t rouse the IRS or pay more taxes than necessary — know the score on each home tax deduction and credit.
As you calculate your tax returns, be careful not to commit any of these nine home-related tax mistakes, which tax pros say are especially common and can cost you money or draw the IRS to your doorstep. Continue reading →