Today's home improvement trends show that we like our houses to work harder and smarter for the money we spend maintaining and improving their value.

          •We no longer want bigger; instead, we want space that's flexible, efficient, and brings order to chaos.
 

          •We're watching our wattage with monitors and meters, and guarding our weekends with maintenance-free exteriors.
 

Here's a look at 7 hot home improvement trends that improve the way we live with our homes.

Trend #1: Maintenance-free siding

We continue to choose maintenance-free siding that lives as long as we do, but with a lot less upkeep. But more and more we're opting for fiber-cement siding, one of the fastest-growing segments of the siding market. It's a combination of cement, sand, and cellulosic fibers that looks like wood but won't rot, combust, or succumb to termites and other wood-boring insects.

At $5 to $9 per sq. ft., installed, fiber-cement siding is more expensive than paint-grade wood, vinyl, and aluminum siding. It returns 78% of investment, the highest return of any upscale project on Remodeling magazine's latest Cost vs. Value Report.

Maintenance is limited to a cleaning and some caulking each spring. Repaint every 7 to 15 years. Wood requires repainting every 4 to 7 years.

Trend #2: Convertible spaces

Forget "museum rooms" we use twice a year (dining rooms and living rooms) and embrace convertible spaces that change with our whims.

Foldaway walls turn a private study into an easy-flow party space. Walls can consist of fancy, glass panels ($600 to $1,600 per linear ft., depending on the system); or they can be simple vinyl-covered accordions ($1,230 for 7 ft. by 10 ft.). PortablePartions.com sells walls on wheels ($775 for approximately 7 ft. by 7 ft.).

A Murphy bed pulls down from an armoire-looking wall unit and turns any room into a guest room. Prices, including installation and cabinetry, range from $2,000 (twin with main cabinet) to more than $5,000 (California king with main and side units). Just search online for sellers.

And don't forget area rugs that easily define, and redefine, open spaces.

Trend #3: A laundry room of your own

Humankind advanced when the laundry room arose from the basement to a louvered closet on the second floor where clothes live. Now, we're taking another step forward by granting washday a room of its own.

If you're thinking of remodeling, turn a mudroom or extra bedroom into a dedicated laundry room big enough to house the washer and dryer, hang hand-washables, and store bulk boxes of detergent.

Look for spaces that already have plumbing hookups or are adjacent to rooms with running water to save on plumbing costs.

Trend #4: Souped-up kitchens

Although houses are trending smaller, kitchens are getting bigger, according to the American Institute of Architects' Home Design Trends Survey.

Kitchen remodels open the space, perhaps incorporating lonely dining rooms, and feature recycling centers, large pantries, and recharging stations.

Oversized and high-priced commercial appliances-did we ever fire up six burners at once?-are yielding to family-sized, mid-range models that recover at least one cabinet for storage.

Since the entire family now helps prepare dinner (in your dreams), double prep sinks have evolved into dual-prep islands with lots of counter space and pull-out drawers.

Trend #5: Energy diets

We're wrestling with an energy disorder: We're binging on electronics-cell phones, iPads, Blackberries, laptops--then crash dieting by installing LED fixtures and turning the thermostat to 68 degrees.

Are we ahead of the energy game? Only the energy monitors and meters know for sure.

These new tracking devices can gauge electricity usage of individual electronics ($20 to $30) or monitor whole house energy ($100 to $250). The TED 5000 Energy Monitor ($240) supplies real-time feedback that you can view remotely and graph by the second, minute, hour, day, and month.

Trend #6: Love that storage

As we bow to the new god of declutter, storage has become the holy grail.

We're not talking about more baskets we can trip over in the night; we're imagining and discovering built-in storage in unlikely spaces --under stairs, over doors, beneath floors.

Under-appreciated nooks that once displayed antique desks are growing into built-ins for books and collections. Slap on some doors, and you can hide office supplies and buckets of Legos.

Giant master suites, with floor space to land a 747, are being divided to conquer clutter with more walk-in closets.

Trend #7: Home offices come out of the closet

Flexible work schedules, mobile communications, and entrepreneurial zeal are relocating us from the office downtown to home.

Laptops and wireless connections let us telecommute from anywhere in the house, but we still want a dedicated space (preferably with a door) for files, supplies, and printers.

Spare bedrooms are becoming home offices and family room niches are morphing into working nooks. After a weekend of de-cluttering, basements and attics are reborn as work centers.
 

"There is a trend away from simple barbecue islands and to elaborate outdoor kitchens," explains Mitch Slater, president of Danver, a manufacturer of outdoor kitchen cabinetry. "Homeowners want to be able to do outdoors all the food preparation that they normally have to do indoors." For that reason, appliances like ice makers, pizza ovens, and beer fridges are all finding their way to the backyard. However, you should carefully consider your needs and lifestyle to ensure that you'll get your money's worth of use and convenience from specialty appliances that may cost thousands of dollars.

Note that with outdoor appliances, you will likely encounter the following additional costs for installation:

          •$125 to $300 to add an outdoor electrical outlet.
 

          •$400 to $800 to run a cold water supply line, or a combination hot-and-cold water supply.
 

          •$1,500 to $3,000 to install hot-and-cold water supply lines plus a drain system.
 

Ice makers

Cost range: $180-$2,000
Likely additional costs: 110 outlet, water line hook-up, cover
Average life span: 3-10 years

With a built-in ice maker, there will be no more trips to the corner store for 25-pound bags of ice. These sleek, stainless steel-clad units blend seamlessly with outdoor kitchen cabinetry and produce about 25 pounds of ice per day.

Because these models get tied into the home's water line, they require a plumber for installation. They also require an electrical outlet. Expect to pay $900 to $2,000 for an outdoor-approved appliance with a warranty that covers parts and labor for one year and the compressor for five. Homeowners in cold climes must shut off the water supply and drain the lines before winter to prevent the freezing and bursting of pipes.

Portable or countertop ice makers are less expensive--ranging from $180 to $300-and don't require a connection to a water line. An interior reservoir is filled with tap or bottled water, allowing the units to produce about 35 cubes per hour. Refilling the tank may be necessary for large amounts of ice, and the appliance requires an electrical outlet.

Because most less-expensive machines are not UL rated for outdoor use, they should not be left out in the weather. Expect shorter warranties (90-day to one year) as well.

Pizza ovens

Cost range: $700-$6,000 and up
Likely additional costs: gas line hook-up, sturdy base, firewood
Average life span: 5-20 years

"Gas or wood-fired pizza ovens are getting very popular," explains Danver's Mitch Slater. Attracted by the romance of a Tuscan-style pizza-making experience, more and more homeowners are installing these hefty gourmet appliances. Constructed of masonry or thick steel, these units all feature a stone hearth floor and gently sloping domed roof.

Wood-fired stoves, the purist's choice, come in two basic models: those heated from a fire built inside the firebox and those heated from a separate firebox below the oven. Both require a sizeable time commitment to reach desired temps, not to mention a steady supply of hardwood. A word of caution, notes Slater: "These units are heavy, 500 pounds or more, and require a sturdy base that can be very expensive to build."

Countertop pizza ovens are fueled by propane or a home's natural gas supply and can reach cooking temps in as little as 30 minutes. Prices range from $700 for a freestanding wood-fired oven to $6,000 for elaborate wood- or gas-fired units. Expect warranties ranging from five years to limited lifetime.

Beer dispenser

Cost range: $400 to $1,500
Likely additional costs: 110 outlet, CO2, cover
Average life span: 5-10 years

For serious entertainers, there may be no greater luxury than an endless supply of ice-cold draft beer. Often referred to as kegerators, beer dispensers simultaneously chill and dispense beer from a keg.

Though models are available for as little as $400, the less-costly versions typically are not designed for outdoor use and must be protected from the weather. Expect to pay between $900 and $1,500 for an outdoor-approved model with a warranty that covers parts and labor for one year and the compressor for five.

Before investing in one of these appliances, it's wise to know that kegs are heavy and not readily available in all areas. A full-size keg holds approximately 160 pints of beer, or roughly seven cases. And once the keg is tapped, the beer will remain fresh only for about three weeks under consistent refrigeration.

In addition to an electrical source, kegerators also require a CO2 supply. Each five-pound cylinder of gas will dispense about six kegs of beer before it needs refilling from a local gas supplier ($10).

Patio heaters

Cost range: $150-$800
Likely additional costs: 110 outlet, natural gas hook-up or propane tank, cover for freestanding units
Average life span: 5-10 years

Patio heaters don't cook the food or chill the beer, but they do increase the amount of time a family gets to enjoy the outdoors. There are three main categories of outdoor heaters, each with its own benefits and drawbacks. None, however, will transform an arctic evening into a tropical oasis: most work best when the thermometer reads between 50 and 60 degrees. Patio heaters add approximately 10 degrees to the ambient outdoor temperature.

Tabletop models stand just 3 feet tall, making them easy to move from site to site. Putting out about 10,000 BTUs, these units heat a 10-foot-diameter circle, or about 80 square feet. They will run approximately two hours on a one-pound propane tank. At about $5 per tank, the operating cost is $2.50 per hour. Prices for tabletop propane heaters range from $150 to $250, including a one-year manufacturer's warranty.

Freestanding--or post-style--heaters stand about 8 feet tall and heat an area more than four times the size of tabletop varieties. Producing over 40,000 BTUs, these models warm a 20-foot-diameter circle, or 314 square feet.

Fuel choices for post-style heaters include propane or natural gas. Using natural gas eliminates the need to refill propane tanks and costs less than half to run, but requires a gas line hook-up and a stationary location. Post-style heaters range from $200 to $500 and come with a one-year manufacturer's warranty.

Electric heaters simply plug into a standard outlet, making them the greenest and cheapest options when it comes to operating costs. Powerful bulbs emit steady infrared heat that is unaffected by wind like models that utilize flames.

Units costing $300 will heat 75 to 100 square feet and cost as little as $0.15 per hour to run. Models that heat 300 square feet cost upwards of $800 and consume about three times the energy.

Some electric heaters are rated for outdoor use and may be exposed to the elements, as long as the outlet itself is weatherproof. Some electric heating units are designated for outside use but must be covered, meaning they can be used only under a roof structure, awning, or eave, limiting their applications. Also, heating elements last only two to four years depending on use and cost $100 to replace. One-year manufacturer's warranties are standard.

If you work from home, even on a part-time basis, you can probably save a few dollars come tax time. That's because you can write off as a business expense part of the cost of owning and operating your home. Everything from electric bills to property taxes may be fair game.

Those tax deductions can add up, thus lowering your taxable income and reducing the amount you owe Uncle Sam. Before you start spending that refund, however, there are a few rules you need to understand and heed. It's a good idea to consult a tax adviser to be sure that you're filing the right schedules and maximizing your deductions.

Passing the IRS litmus test

To meet IRS guidelines, your home office must be your principal place of business, or the place you see clients in the normal course of business. Parts of your home you use to store products or equipment for your business also count. That doesn't mean that all your work has to be done from home. If you're an outside salesperson, you probably spend most of your work time elsewhere. But if you do you billing and return customer calls primarily from your home, your home office should qualify.

You can also qualify for the deduction if your employer requires you to work from home, as long as you don't charge your employer rent. One big catch is that you must maintain the at-home office for your employer's convenience, not your own, such as to complete reports at night or on weekends. Self-employed workers use IRS Form 8829 to calculate the deduction, which they list on Schedule C.

Measuring your home office

The amount you can deduct for your home office depends on the percentage of your home used for business. Your work space doesn't need to be a separate room-a table in a corner qualifies. But it has to be an area that's used solely for business. The tax break also covers separate structures on your property, like a detached garage you've converted to an office. Unlike an office inside your home, a separate structure doesn't have to be your main place of business to qualify for a deduction. That's because the IRS believes your family is less likely to use a separate structure as a part-time play area or den, says Mark Luscombe, principal analyst for tax and consulting at CCH.

To calculate what percentage of your house the home office occupies, divide your home office's square footage by the total square footage of your home. If your home is 3,000 square feet and your office is 150 square feet, for example, you'd use 5% to calculate your deductions. Not sure how big your house is? Check the documents you received when you bought your home-there's probably a detailed rendering-or measure the outside of your home and multiply length times width.

What can you deduct?

Once you've figured out what percentage of your home you use for business, you can apply that percentage to different home expenses. These include:

          •Mortgage interest
 

          •Real estate taxes
 

          •Utilities (heating, cooling, lights)
 

          •Home repairs and maintenance (painting, cleaning service)
 

          •Home owners insurance premiums
 

Just take each expense and multiply it by your home office percentage (the 5% mentioned above). That's the amount you can deduct as a business expense. So if you spend $150 a month on electricity, you can deduct $7.50 as a business expense. That adds up to a $90 deduction per tax year.

Save bills or cancelled checks to prove what you spent in case of an IRS audit. Take an hour a week to file them away. Also, only repairs can be expensed; improvements must be depreciated.

Don't forget depreciation

Depreciation is based on the idea that everything-even something like a home-wears out eventually. To figure home office depreciation, start by calculating the tax basis of your home: generally the purchase price plus the cost of improvements, minus the value of the land it sits on. Next, multiply the tax basis by the percentage of your home used for work. This gives you the tax basis for your home office.

Usually, depreciation deductions for a home office are figured over a 39-year period. There are caveats. For a crash course, read IRS Publication 946 or talk to a tax pro.

Keep in mind that depreciation deductions on your home office increase the amount of profit on a home sale that is subject to taxes. There's an exclusion of $250,000 of profit if you're a single filer, $500,000 for joint filers. Consult with a qualified tax professional on how depreciation deductions affect your tax liability when you sell.

This article provides general information about tax laws and consequences, but shouldn't be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.
 

Today's home improvement trends show that we like our houses to work harder and smarter for the money we spend maintaining and improving their value.

          •We no longer want bigger; instead, we want space that's flexible, efficient, and brings order to chaos.
 

          •We're watching our wattage with monitors and meters, and guarding our weekends with maintenance-free exteriors.
 

Here's a look at 7 hot home improvement trends that improve the way we live with our homes.

Trend #1: Maintenance-free siding

We continue to choose maintenance-free siding that lives as long as we do, but with a lot less upkeep. But more and more we're opting for fiber-cement siding, one of the fastest-growing segments of the siding market. It's a combination of cement, sand, and cellulosic fibers that looks like wood but won't rot, combust, or succumb to termites and other wood-boring insects.

At $5 to $9 per sq. ft., installed, fiber-cement siding is more expensive than paint-grade wood, vinyl, and aluminum siding. It returns 78% of investment, the highest return of any upscale project on Remodeling magazine's latest Cost vs. Value Report.

Maintenance is limited to a cleaning and some caulking each spring. Repaint every 7 to 15 years. Wood requires repainting every 4 to 7 years.

Trend #2: Convertible spaces

Forget "museum rooms" we use twice a year (dining rooms and living rooms) and embrace convertible spaces that change with our whims.

Foldaway walls turn a private study into an easy-flow party space. Walls can consist of fancy, glass panels ($600 to $1,600 per linear ft., depending on the system); or they can be simple vinyl-covered accordions ($1,230 for 7 ft. by 10 ft.). PortablePartions.com sells walls on wheels ($775 for approximately 7 ft. by 7 ft.).

A Murphy bed pulls down from an armoire-looking wall unit and turns any room into a guest room. Prices, including installation and cabinetry, range from $2,000 (twin with main cabinet) to more than $5,000 (California king with main and side units). Just search online for sellers.

And don't forget area rugs that easily define, and redefine, open spaces.

Trend #3: A laundry room of your own

Humankind advanced when the laundry room arose from the basement to a louvered closet on the second floor where clothes live. Now, we're taking another step forward by granting washday a room of its own.

If you're thinking of remodeling, turn a mudroom or extra bedroom into a dedicated laundry room big enough to house the washer and dryer, hang hand-washables, and store bulk boxes of detergent.

Look for spaces that already have plumbing hookups or are adjacent to rooms with running water to save on plumbing costs.

Trend #4: Souped-up kitchens

Although houses are trending smaller, kitchens are getting bigger, according to the American Institute of Architects' Home Design Trends Survey.

Kitchen remodels open the space, perhaps incorporating lonely dining rooms, and feature recycling centers, large pantries, and recharging stations.

Oversized and high-priced commercial appliances-did we ever fire up six burners at once?-are yielding to family-sized, mid-range models that recover at least one cabinet for storage.

Since the entire family now helps prepare dinner (in your dreams), double prep sinks have evolved into dual-prep islands with lots of counter space and pull-out drawers.

Trend #5: Energy diets

We're wrestling with an energy disorder: We're binging on electronics-cell phones, iPads, Blackberries, laptops--then crash dieting by installing LED fixtures and turning the thermostat to 68 degrees.

Are we ahead of the energy game? Only the energy monitors and meters know for sure.

These new tracking devices can gauge electricity usage of individual electronics ($20 to $30) or monitor whole house energy ($100 to $250). The TED 5000 Energy Monitor ($240) supplies real-time feedback that you can view remotely and graph by the second, minute, hour, day, and month.

Trend #6: Love that storage

As we bow to the new god of declutter, storage has become the holy grail.

We're not talking about more baskets we can trip over in the night; we're imagining and discovering built-in storage in unlikely spaces--under stairs, over doors, beneath floors.

Under-appreciated nooks that once displayed antique desks are growing into built-ins for books and collections. Slap on some doors, and you can hide office supplies and buckets of Legos.

Giant master suites, with floor space to land a 747, are being divided to conquer clutter with more walk-in closets.

Trend #7: Home offices come out of the closet

Flexible work schedules, mobile communications, and entrepreneurial zeal are relocating us from the office downtown to home.

Laptops and wireless connections let us telecommute from anywhere in the house, but we still want a dedicated space (preferably with a door) for files, supplies, and printers.

Spare bedrooms are becoming home offices and family room niches are morphing into working nooks. After a weekend of de-cluttering, basements and attics are reborn as work centers.
 

Trend #1: Conservation rules

 All around the country, water reserves are stressed. In response, regional governments are implementing conservation measures. As a result, there are likely to be new regulations that'll affect your construction or remodeling plans. Here's what to watch for:

Your new toilet will have a lower flush-per-gallon rating than the one that's in there now. Consider a dual-flush version, or any low-flow toilet  coming on the market that meets your style preferences. At the very least, your next commode is likely to feature a 1.28 gallon-per-flush rating - better than even the most-recent 1.6 GPF offerings.You'll find them at home improvement centers from $100 to luxury showroom models for thousands more.

The WaterSense (http://www.houselogic.com/home-advice/saving-water/what-is-water-sense-label/) label, launched in 2006 by the Environmental Protection Agency to promote water conservation by plumbing manufacturers and home owners, will become as well-known as Energy Star. You'll be shopping for low-flow shower heads and faucets with the WaterSense symbol on the box. Just as with Energy Star appliances, there is no cost premium associated with WaterSense savings -- there are faucets in every price range. WaterSense shower heads are newer on the market, with a more limited selection today - mostly at more affordable prices.

You'll start seeing more shower heads- especially rain shower models - using Venturi principles that deliver strong water pressure by adding air, not water, to the mix. They're available in every price range, from ultra-affordable standard heads to luxury rain showers.

Trend #2: Technology advances

You may not think of your bathroom as a high-tech space, but that's about to change. Here are some of the trends that can benefit your home:

You'll be able to create a custom showering experience more affordably than ever. For $300 for simple controllers to $3,500 or more for a complete luxury installation, programmable showers let you digitally set your preferred water temperature, volume, and even massage settings before you step in. To achieve a personalized showering experience, you'll need a 120-volt power source, and a thermostatic valve and controller in addition to your standard shower head or heads. Luxury models may include a steam system, a wi-fi source for music, multiple body spray outlets, tankless water heater, and a secondary controller to start the system from another room.

Dock your iPhone or MP3 player directly with your speaker-equipped, high-tech toilet so you can entertain yourself on the commode. While you're not likely to invest $4,000 to $6,000 for a Kohler Numi toilet using this technology today, start looking for competitive models later in the year with lower prices.

Catch up on news and weather while you brush your teeth. Television screens are being integrated into medicine cabinets and vanity mirrors. Cost? Early entries to the market command a premium $2,200 to $2,400 price tag.

Plug your smart phone or MP3 player into your medicine cabinet so you won't miss a call or song while getting ready for work or bed. A built-in jack keeps your unit charged (and away from wet countertops) and linked into a built-in speaker system.

Trend #3: Aging demographics emphasize safety

 It's not just high-tech that's bringing an "experience" to the bathroom. Trends in universal design features add comfort, convenience, and safety. But that doesn't mean your bathroom has to look institutional. Here are some universal design  innovations that can factor helpfully (and stylishly) into your 2012 bath remodeling plans:

Sleek, low-profile linear drains are ideal for creating safe, zero-threshold shower designs. Unlike standard round drain covers that are typically mounted near the front end of a shower, these long, straight drains can be installed in different locations to minimize the slope of the shower floor. One popular location is at the outside edge of the shower, creating a wheelchair-friendly curbless shower. More offerings in more finishes -- including nearly invisible tile-in channel models that are largely covered by shower floor tile -- are becoming the standard for upscale spaces. You'll spend $500 to $900 for a quality linear drain.

The rapidly-expanding selection of porcelain, glass, and ceramic tiles makes it easy to find slip-resistant, low-maintenance floors that don't skimp on style. Expect to see faux wood, linen, and uniquely-textured looks for tiled bathroom floors and walls in 2012. The texture adds both visual impact and better traction for wet feet.

The accessible tub is no longer limited to the high-walled, narrow-door format that dominated the market in the last decade. Newer models, such as Kohler's Elevance ($5,100), employ rising panels in front that give more of a traditional tub look with easier entry and exit. Others use standard hinged, sealed doors, but are increasing door width by several inches for better accessibility and appearance.

What improvements - big or small - are you planning for your bathroom this year?

Refacing your kitchen cabinets includes covering the exposed frames with a thin veneer of real wood or plastic laminate. Doors and drawer fronts are replaced to match or complement the new veneer. New hinges, knobs, pulls, and molding complete the transformation.

Kitchen cabinet refacing pros

          •It's about half the cost of a total cabinet replacement. You'll also save the time, cost, and hassle of tearing out your old cabinets.
 

          •It's a green kitchen remodeling solution because old cabinets stay out of the landfill.
 

          •You can continue to use your kitchen during refacing.
 

          •You'll give your kitchen a new look in a week or less.
 

Kitchen cabinet refacing cons

          •Pricey options, such as expensive replacement hardware and exotic veneers, can drive up the cost of refacing and reduce savings.
 

          •Refacing materials can't fix an inefficient layout.
 

What are your refacing options?

Your choices for the finished look of your cabinets is virtually limitless. Veneers are available in a wide variety of colors, patterns, textures, grains, and more, which you can mix or match to get a relatively low-cost kitchen facelift

          •Rigid thermofoil (RTF) doors, which feature a durable plastic coating over fiberboard, are an affordable alternative to wood or laminate doors.
 

          •Plastic laminates come in hundreds of colors and patterns, are durable and moisture-resistant, and are reasonably priced. You can pick matching or contrasting laminates for your doors and drawer fronts.
 

          •Real wood veneers include many standard species, such as oak, cherry, and maple, and you also can choose from an array of stain colors. Wood veneers are the most expensive option. Wood must be carefully sealed to protect against moisture.
 

Further customize and update the look of your cabinets with new kitchen cabinet hardware.

What does refacing cost?

A professional cabinet refacing for a typical 10-by-12-foot kitchen starts at around $1,000 to $3,000 for laminate. Expect to pay $2,500 to $6,000 for real wood veneer. Costs can rise to $7,000 to $9,000 or more for a large project with high-quality wood veneer.

Finishing the project with new hardware (pulls, knobs, hinges) runs $2 to $4 per piece, up to $20 to $50 each for high-end hardware.

In comparison, completely replacing old kitchen cabinets with new cabinets starts at $4,000 to $5,000 and up for stock cabinets; $8,000 to $10,000 for semi-custom cabinets; $16,000 to $20,000 and up for custom-made cabinetry.

Can my cabinets be refaced?

Refacing is feasible if your existing cabinet boxes are structurally sound and in good condition. Cabinets with water damage, warping, and broken frames are poor candidates. Particleboard cabinetry sometimes requires fasteners, in addition to adhesives, to ensure that the veneer is secure.

What's involved

A professional installer will come to your house to measure your cabinets and determine the amount of veneer required, the correct sizes and quantities for door and drawer fronts, and how much hardware is needed. Newly ordered doors and drawer fronts may take 1 to 2 weeks for delivery.

When all the materials are in hand, your installer removes old cabinet door and drawer fronts, and prepares the surface of the cabinet boxes by washing the exteriors with a degreaser and lightly sanding the finish. Any significant flaws in the surface are repaired or filled to ensure a smooth, secure fit for the new veneer.

The installer applies veneer to the cabinet faces and any exposed cabinet ends, then mounts the new doors, drawer fronts, and hardware. The process typically takes 2 to 4 days.

Can I do kitchen cabinet refacing myself?

Detailed instructions and adhesive-backed veneers make cabinet refacing a feasible do-it-yourself project.

If you have extra time, patience, the necessary veneering tools, and a knack for precision, you can save money by tackling kitchen cabinet refacing on your own.

If you opt to do your own kitchen cabinet refacing, you'll spend about $200 to $500 on average for materials. Specialized tools (rollers, blades, irons) add $5 to $60 to the cost.

We knew reports of the death of American home ownership were greatly exaggerated (nod to Mark Twain), and now we've got the numbers to prove it.

A just-released survey by the Meredith Corp., which publishes Better Homes and Gardens magazine, says the vast majority of people polled believe owning a home is a smart financial move and a source of pride.

Here are some results of the 2,500 people surveyed online:

          •86% of home owners still feel owning a home is a good investment.
 

          •85% feel "owning a home is one of their proudest accomplishments."
 

          •69% of Americans who don't currently own a home agree with the statement, "No matter what happens in the U.S. housing market, owning a home is still an important goal in my life."
 

          •68% of Americans plan to spend money on their homes in the next six months, with roughly half (49%) expecting to pay up to $1,000.
 

A thousand bucks may not seem like a lot, but it goes long way toward improving the value and comfort of your home. Here are some projects we recommend:

1. Add a new entry door. Spruce up your curb appeal and save energy by upgrading your exterior door (http://www.houselogic.com/home-advice/windows-doors/exterior-door-installation-options/). Steel doors, which can mimic many types of wood, typically run for $400 at big-box stores and offer the strongest barrier against intruders.

2. Get organized. Decluttering and maximizing storage space are inexpensive ways to transform a home. Add space to kids' rooms by installing platform or bunk beds ($400-$600); neaten piles of shoes with shoe organizers ($20), which can do double duty as catch-all organizers in family room closets and kitchen pantries; extend bookshelves to the ceiling, creating storage in otherwise dead space.

3. Save with a programmable thermostat. Switching from a manual to a programmable thermostat (less than $500) can save you up to $180 a year in energy costs. The latest models offer remote programming via the Internet.

4. Replace cabinet hardware. If you've got traditional knobs and pulls, try contemporary; change from staid to whimsical. Big-box retailers often have huge selections for budget prices. (10-pack for $20).

5. Update bathroom flooring. Give bathrooms a quick facelift by replacing old tile with vinyl flooring or ceramic tile, which can cost as little as $3 per square foot for material and installation.

6. Create luxury with a shower panel. Turn you bathroom into a spa with a programmable shower panel with adjustable spray jets, fog-free mirror, and multifunctional shower head. Most systems easily attach to existing plumbing. Panels typically sell for $360.

7. Turn a mudroom into a garden room. Bring nature inside by recasting your drab mudroom into a flower-filled garden room. (If you already have a utility sink, you're halfway there. If not, it will cost you $200 to $350 to tap into existing, nearby plumbing, and $80 for a plastic tub.) Repurpose an old wood table into a potting bench. And hang your basket collection from J-hooks attached to a forged iron curtain rod ($100).

What improvements have you made recently under $1,000? What are you planning to do in the next six months?

Do you pay each home-related expense as it comes? If so, you're missing opportunities for upgrades, or much worse, heading into a financial crisis when a slew of surprise maintenance items hit. So take a holistic look at what it costs to operate your house and set up a home financial plan.

Use our home financial plan budget worksheet, and start by writing a list of expenses, such as:

          •Mortgage
 

          •Taxes
 

          •Home insurance, including liability
 

          •Repairs and maintenance, such as new furnace, roof, painting
 

          •Voluntary upgrades, such as a swimming pool, a premium range, a new powder room
 

What will you learn from this home financial plan weekend exercise?

          •How much you have to spend
 

          •How much you need to allot in the short- and long-term for necessary maintenance and voluntary improvements
 

With this newfound grip on your home's expenses, you can create a home financial plan that'll help you there for years with maximum enjoyment and minimum anxiety.

The mortgage: Pay it--and then some

Yup, you already shell out a lot for your mortgage, but can you pay more? Even a little extra each month can add up to an earlier payoff. Let's say you have $200,000 in outstanding principal and a 20-year fixed-rate mortgage at 5%. Your monthly payment is $1,319.91. But if you can manage to pay another $100 a month, you'll save $14,887 in interest.

Run the numbers yourself for your home financial plan.

Advantages of an early payoff, says Alan D. Kahn, a financial planner in Syosset, N.Y.:

          •Less debt means more money to spend later.
 

          •It feels darn good to own your house outright as soon as possible.
 

          •Minimal tax loss. Toward the tail end of the life of a loan most of your payment goes to the principal, not the interest, so you're getting only a small tax break anyway.
 

Of course, if you're still saving for retirement, put the 100 bucks elsewhere:

          •A retirement plan
 

          •An account for the inevitable home repairs
 

          •An account for discretionary improvements, which can raise your home's value
 

Insurance: Protect your property

Your vegetable garden is pointless without a fence to keep out rabbits; likewise, your home financial plan will come to nothing without an insurance "fence":

Homeowner's insurance. Basic coverage for your home and everything in it. The average cost is $636 per year but this varies widely by state.

Liability coverage. Protects you from a lawsuit if someone gets hurt on your property, for example. Your best bet: An umbrella policy. For about $300 a year you can by a typical $1 million policy.

Various disaster insurance policies. Optional policies cover flood, earthquake, and hurricane damage. As part of your home financial plan, you have to research to see what disaster coverage, if any; you need in your area, and what your standard policy already covers. For $540 a year you can buy flood insurance, for example.

Don't under- or overbuy insurance

For your basic policy, get homeowners insurance with full replacement coverage in case your house burns to the ground.

That sounds simple, but heads up on calculation. Remember that you own a house as well as the land on which it sits. So even though you bought your home for $300,000, it may cost only $100,000 to rebuild it. Your policy limits should reflect this. This difference will vary widely by region.

Another heads up: Don't make the common and potentially disastrous mistake of thinking that because your home has fallen in value you need less insurance. If you bought a $1.2 million townhouse in Florida during the boom, it's true it now may only sell for $600,000. But the replacement cost of the townhouse hasn't changed much, so you can't improve your home financial plan by cutting insurance costs that way.

Other ways to cut your insurance budget:

          •If you make structural improvements, such as adding storm shutters, your insurer may give you a break.
 

          •If you belong to certain groups, such as AARP or veterans' organizations, your premiums may be lower.
 

Repairs and renovations: By choice or necessity

You own a home, so you'll be spending money on everything from a new faucet to-surprise!-a new roof. Freddie Mac and other authorities say as part of your home financial plan, you should be prepared to spend 1% to 3% of the market value of the home annually on maintenance. To be extra-prudent, open a savings account and make regular payments until your account reaches 1% to 3% of your home's current value.

To help you budget:

Start with the inspection report you received when you bought the house. Did the inspector indicate that you would need a new roof in five years? A new furnace in 10?

Keep a log of your major appliances' age so you can estimate when they'll need replacing. Some estimated life spans:

          •Roof: 20-25 years
 

          •Heating systems: 15-20 years
 

          •Range/ovens: 11-15 years
 

          •Water heaters: 8- 13 years
 

Then get estimates on what replacements will cost and start saving.

Consider ongoing non-emergency maintenance, too. Do you live in New England? Price a snow blower and get bids from plow services.

Resist the siren call of the home equity loan to take care of everything. That just defeats your efforts to pay off the mortgage early.

Separate out what you want from what you need. A $50,000 kitchen remodel is nice, but you'll recoup only 76% of the project cost your home's resale, according to Remodeling magazine.

If you can afford to redo, go for it. Just don't confuse your necessary repairs (new oil furnace-about $4,000) with your discretionary upgrades (Viking range-$6,000 and up).

Taxes: (Almost) no way around them

Even if your lender handles your property taxes from an escrow account, you need to budget for them in your home financial plan. They creep up almost every year, it seems. Take responsibility for tracking the changes in your area: Look over past tax bills to get a sense of how quickly they've risen in the past.

Or if your lender handles escrow and you haven't saved your bills, ask for an accounting. The median annual property tax payment is $2,198, but that hides the enormous range in medians from state to state:

          •New Jersey: $6,320
 

          •New York: $3,622
 

          •California: $2,829
 

          •Alabama: $383
 

          •Louisiana: $188
 

You can generally deduct property taxes on your federal return. A tax pro can tell you how much of a tax break you'll get, to help you fine tune your home financial plan.

You may be able to reduce your tax burden by getting a reassessment. Do your homework first: Are comparable houses taxed less than yours? Ask the local assessor what formula is used to set tax rates. You can challenge the assessed value and get yourself a rollback.

If you're in a special group, you might get some help from state or local programs. Check around to see what's available in your area. New York State, for example, has its Star Program for giving senior citizens some relief from school-related property taxes.

It's time for your annual check-up. The good news is that for this one, you won't have to don one of those revealing hospital gowns-and you may walk away with a healthier pocketbook. We're talking about a homeowners insurance check-up, a task you should complete once a year, ideally around renewal time. This will ensure your policy still provides the right level of coverage for your family, and your premium isn't costing you more than it should.

Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property. Block out an hour of your time, call an insurance agent, and get answers to these three important questions.

What type of coverage do I have?

The most effective type of coverage is known as "replacement cost," which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers.

"Extended" replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, "full" or "guaranteed" replacement coverage covers an entire claim regardless of policy limits.

A less attractive alternative is "actual cash value" coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead.

Even if you have replacement cost protection for your dwelling and personal property, don't assume everything is covered. Structures other than your home on your property-such as a detached garage or swimming pool-require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped.

How much coverage do I really need?

OK, now that you're clear on what type of policy you have, you need to figure out how much policy you truly require in dollar terms. Let's say you purchased your home five years ago and insured it for $200,000. Today, it's worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here's why.

The key to determining how much dwelling coverage you need isn't the value of your home but the money you'd have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors' or homebuilders' association and inquire about the average per-square-foot construction cost in your area. If it's $150 and your home is 2,000 square feet, then you should be insured for $300,000.

There's no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors-age, education level, creditworthiness-to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you'd think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more.

How can I lower my premiums?

The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities, not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you're wasting money with a $250 deductible.

Foley's rule: If you're a first-time homeowner and don't have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That's $64 in savings.

 Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.

The contract your general contractor offers is a good starting point--for the contractor. You must edit the document so it also shields you.

Hiring a lawyer to review and make changes to a contract is a good idea, especially since each state has its own construction contract statutes. But an attorney review will cost at least $500, plus $1,000 to $1,500 in additional fees to make wholesale revisions to a flawed contract.

If you'd rather invest your money in Italian tile and other goodies, learn how to read and rejigger construction contracts.

The essential job of a construction contract is to spell out the project's "scope of work." This is the document you and your contractor will consult throughout the job, so make sure it's as detailed as possible.

Some states require the contractor to write his license number on the document and to include a clause that allows you to rescind within a certain time period after signing. Check your state laws to learn what your construction contract should contain.

 A thorough contract is filled with numbers and stipulations that will take several hours to review, so leave enough time to review it before signing. The contract should state:

          •Contractor will secure all necessary permits and approvals
 

          •Where and which walls will be moved
 

          •Payment schedule
 

          •Work hours
 

The contract needn't contain product specs on its pages: It may refer to the contractor's attached, itemized bid.

Set a payment schedule

The contract is your summary of how much and when you should pay for completed work. Payments should be linked to work milestones, such as when the foundation, rough plumbing, and electricity are completed. Here are some general guidelines:

          •First payment should be no more than 10% of the total job.
 

          •Final payment should be enough money--at least a few thousand dollars--to make sure the contractor returns to correct niggling details.
 

          •Keep back enough money to hire someone else to finish the work if things go south with your contractor.
 

Schedule start and end dates

A boilerplate contract rarely says when the job will begin and end, so make sure you add those details to the document.

Look at these dates as a timeframe, not a minute-by-minute promise: Delays happen and an eight-week job wraps up in nine. But if the project drags on for months, written start and end dates will help make--or defend--your case in court.

Address change orders

Make sure the contract states that any changes that will affect the cost of the job must be priced in writing and countersigned by both the contractor and home owner before that work commences. This line ensures that offhand discussions don't result in unforeseen additional costs
Written change orders also help you update your budget and resist the frequent urge to expand the job.

Research your arbitration options

Many remodel contracts contain a clause that stipulates that an arbitrator, rather than a judge, will resolve disputes. This clause can save you time and money because a court fight is expensive, even if you win.

Problems arise, however, when the contractor names a specific arbitrator.

"There are some big, national, well-respected arbitrators, like the American Arbitration Association, says Tampa, Fla., attorney George Meyer, chairman of the American Bar Association's Forum on the Construction Industry. "And there are other questionable arbitrators that always side with the contractor."

Before you sign the contract, research the arbitrator named. If you don't like what you find out, insist on another.

Turn down contractor's warranty

Agreeing to a warranty may limit your contractor's liability and cost you money in the end.

Warranties often are loaded with exclusions and time limits that favor the contractor, not you. Frequently, state statues provide better protection, which you forfeit if you accept less from the contractor. Unless a lawyer reviews the contract, strike the warranty clause.