Starting out as a homeowner can be tough. Here's how to set priorities
and avoid pitfalls.
By Rachel Leibrock - Bee Staff Writer

Published 12:00 am PDT Saturday, July 28, 2007
Story appeared in unknown section, Page CALIFORNIA LIFE14

http://www.sacbee.com/165/story/289611.html

Jeff and Betsy Park dreamed of the changes they would make once they
moved into their 1983 three-bedroom Natomas home:

The complete bathroom remodel. The updated kitchen countertops. The
brand new dual- pane windows.

"When we were in escrow we'd just walk around Home Depot looking at
kitchen stuff and windows and bathroom fixtures," Jeff says. "We were
going to do everything."

Then reality set in.

"That all pretty much came to a screeching halt as soon as we moved
in," Betsy says of the home they share with Lola, their 2-year-old
Labrador retriever/ German shepherd mix.

"Two months later were were like, 'Boy, this is just not going to work
out like that,' " Jeff says. "It's just not that easy."

Call it the plight of the first-time homebuyer. You've signed on the
bottom line and written that first mortgage check -- but that was just
the beginning of your responsibilities. From sorting out repairs and
dreaming of remodels to navigating myriad do-it-yourself projects,
surviving that first year as a homeowner can be an eye-opening (not to
mention wallet-draining) experience.

For the Parks, 29-year-old upstate New York transplants who've lived
in their new home for just over a year, the process quickly became a
lesson in budgeting, prioritizing and compromise.

Once the pair got over the "shock" of a hefty mortgage payment, Jeff
says, it all came down to this:

"What do we dislike the most -- and can we afford to do it?"

Home (sometimes not so) sweet home

You can have your house and enjoy it, too, but patience is definitely
a virtue.

In other words, says Amy Matthews, don't rush into spending money or
making major changes to your newest prized possession.

"You need to live in your space for a while," says Matthews, who hosts
the DIY network's home remodeling show "Sweat Equity."

"Your home is a living, breathing thing," she says.

"The more you let yourself adapt to your home and get to know that
space, the more your priorities will change."

But, she's quick to stress, you don't just have to sit around looking
at your new walls. There are plenty of quick, affordable fixes that
can add personality and even value.

"I always recommend things like replacing hollow doors -- which are
kind of old and ugly anyway -- with ones that are more energy
efficient," Matthews says.

Whatever the choices, write a budget and stick to it, Matthews says.

"You don't want to end up house-poor," she says.

"Get a home you can enjoy but also live your life with," she says.
"Make it a place of beauty, but make it your own."

For the Parks (he's a salesman, she's a staffing recruiter) that meant
cutting back on dinners out and saving money for manageable projects
such as painting, replacing light fixtures and planting flowers.

They did indulge in one big fix -- replacing their home's nubby
popcorn ceilings with a more modern, smoothly textured surface.

"We decided that was priority number one and luckily that was a gift
from (Jeff's) mom," Betsy says. "It immediately updated our house,
when we walked in and saw the difference, it was like 'wow.'"

And while what wows the Parks may not top someone else's home to-do
list, it all comes down to personal choice.

"When you're on a budget, you can't do it all at once and that's when
priorities become very personal," says Laura Meyer, a family law
attorney turned home remodel expert and co-author of "Remodel This! A
Woman's Guide to Planning and Surviving the Madness of a Home
Renovation" (Penguin, $14.99, 236 pages).

"I saw divorces precipitated by remodels gone bad," Meyer says. "So,
It's really important to get on the same page before you even start."

Jeff and Betsy Park's wish list doesn't necessarily match up -- he'd
love to finish landscaping the backyard, she's still dreaming of that
total bathroom makeover -- but they've figured out how to find the
middle ground.

"I'm pretty laid-back, so if the backyard's going to make you happy
then do it," Betsy says.

It's only fair, she adds, considering he's the one who usually "losing
sleep" over the house.

"The first year was really trying for me," Jeff says. "I'd just worry
at night about all the creaks and groans from the house, wondering if
the house was going to fall down around us."

It's an anxiety heightened by the realization that the concept of
tapping into a home's equity or "flipping" it for profit is not really
an option for most recent home buyers.

"I worry a lot about whether we'll ever make our money back," Jeff
says. "And that does have an impact on whether we're going to sink
money into doing something for the house."

As such, the chilly housing market has had a major impact on many of
the couple's decisions.

"You have to have a different kind of mentality these days," Betsy
says. "We're just going to do what we have to do and not put ourselves
into debt over it."

In the meantime, she adds, surviving that first year of home ownership
has been less about fixes (minor or major) but about making sure the
house fits their goal to start a family.

And, both husband and wife agree, after a year of wondering, worrying,
planning and fixing, it's all gotten just a little bit easier.

"We've hit a routine," Jeff says.

A routine born out of that delicate calculation based on want vs. need
and cost vs. reality.

"We're a lot more comfortable with all of that now," Betsy says. "We
make a lot of our decisions based on value and the (idea) that if
we're going to do something to our home, we're going to do it right."

Keep the American dream from turning into a nightmare

Owning your own home -- it's the American Dream, right? But if you're
feeling overwhelmed about what to do, then it can quickly start to
feel more like a nightmare.

Here are some tips to help you sleep at night -- and make your new
house feel more like a home.

1. Be energy efficient:

"Make sure your house is properly insulated, that your windows are
properly sealed (and) that your roof is in good shape," says Consumer
Reports' home and yard editor Bob Markovich.

"It saves you money and it's also a fantastic opportunity to add style
to the house (with) updated windows, roofs or vinyl siding."

2. Go outside:

Outdoor living spaces are hot. Decks, of course, are popular, but even
adding an inexpensive table and chairs can expand and improve upon
your living space, Markovich says.

3. Get on solid footing:

New vinyl or plastic laminate flooring is a relatively cheap and easy
alternative to hardwood -- and it can give your home an instant,
stylish makeover. And, because these "floating flooring" pieces are
fitted together like a puzzle, he says, most homeowners can tackle the
project.

4. Unpack everything:

And by everything we mean: Every. Last. Box. "If you wait too long,
then you'll never do it," says "Remodel This!" author Laura Meyer.
"You'll forget what's in those boxes and they'll collect dust."

5. Don't buy into the extended warranty:

"Most products seldom break within the extended warranty period, and
if they do, the cost of repair is usually not more than the cost of
the warranty," Markovich says.

Instead, he says, check the product's repair history or consumer
rating.

6. Put time on your side:

"The number one mistake people make is underestimating the time a
project will take," says "Sweat Equity" host Amy Matthews. And no, she
says, that rule doesn't just apply to massive undertakings; even
simple paint jobs can set you back if you don't set goals and make a
realistic timeline.

7. Don't overdo it:

Even if you do have the time and money, "don't spend more on your
house than it's worth," Meyer says. While that may sound like a harsh
attitude to take against your newest prized possession, it comes down
to simple economics. "If you're living in a neighborhood with two- and
three-bedroom homes, then it doesn't make financial sense to add a
fourth bedroom," Meyer says. The bigger house isn't necessarily the
better one."