by Laurie Kaiser

Created on: June 09, 2009   Last Updated: June 18, 2009

You've just bought a home - probably the largest investment you'll ever make - and you plan to make it all your own. Before you open your wallet, realize that home improvements generally cost thousands of dollars. Most homeowners often underestimate the cost of property upgrades and maintenance. It's wise to proceed with caution. Here are some common pitfalls you'll want to avoid:

1) Acting too soon. Spend some time getting acquainted with your new home before remodeling. Don't jump in and start ripping and tearing because you might be sorry, and future owners might be even more sorry. Remember what attracted you to the home in the first place. Living in a home for awhile will show you more clearly the changes you need to make (as well as those you don't). A grace period can eliminate costly mistakes.

2) Undertaking over-the-top remodels. While they can add greatly to the value of your home, remodels should be undertaken with a few considerations: Is the remodel in keeping with the value of the home and neighboring homes? Will you realize a good return on your investment at resale? Will the remodel improve the quality of your life? Of all rooms in the home, kitchen and bath renovations generally offer the best return on investment. Don't get swept up in the latest trends if they're not useful to you. Don't buy a commercial-grade range, for example, if you don't cook or a large jetted tub if you don't take baths. You can expect about a 75 percent return on your investment in a mid-range bathroom or kitchen remodel, according to Remodeling magazine's most recent Cost versus Value Report, and about 10 percent less on an upscale remodel.

3) Creating fussy landscaping. Sure, you'd like to improve your home's curb appeal, but don't create a maintenance headache in the process. Landscaping experts say one of the most common mistakes homeowners make is undertaking a Big Dig without a plan; they realize too late that they are in over their heads. If you have to call a professional at this point, be prepared to pay tens of thousands of dollars. Advice: start small. Unless you're into gardening and yard work, opt for a low-maintenance landscape that might include a small lawn, trees and shrubs, ornamental grasses and container gardens. While beautiful, perennial beds and romantic cottage gardens require routine maintenance to look their best.

4) Installing pools and spas. Outdoor living is in. The idea of an outdoor oasis with a pool, spa or even koi pond might sound heavenly, but in reality maintenance could become hellish. Be sure you can spend enough time enjoying these amenities to make maintaining them worthwhile. And if you're considering resale value, pools and spas generally do not add to the value of a home. Many prospective buyers don't want the maintenance hassles.

The projects offering top returns on your investment, according to Remodeling magazine, are fiber cement and vinyl siding, wood decks, window replacement and mid-range kitchen remodels.

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