After navigating through some rough patches in their careers, a magazine designer and her journalist husband began searching for new jobs. Figuring they’d soon be moving, they decided to renovate the dated kitchen of their 1920s-era townhouse.

After calling in their favorite contractor, the couple in this true story opted for a mere facelift for the kitchen at an expected cost of $10,000. But the project quickly zoomed out of control as the homeowners added more upgrades to their list.

Before they were done, the couple’s kitchen remodel cost nearly $90,000. When they sold the townhouse just over a year later, they were able to recoup only a fraction of that expense.

Kathi Fleck, author of "Renovate, Remodel ... Relax!" is not surprised by the story. She urges owners expecting to sell within a year or two to consult with real estate pros from their area before committing to pre-sale renovations. This is an especially good idea if they’re in a hot market where willing buyers outnumber sellers.

“You don’t want to overspend on unnecessary renovations unless you’re going to stay more than five years,” says Fleck, who, with her husband, owns a 10-year-old remodeling company that often assists home sellers on behalf of agents working for Coldwell Banker realty offices.

Mark Nash, a real estate analyst and author of “1001 Tips For Buying and Selling a Home,” says by consulting a knowledgeable real estate agent before heading into a remodeling project, homeowners can often avoid major errors.

Here are a few pointers for those planning to remodel before selling:

-- Seek counsel from real estate people with expertise in your area.

“Make sure the agents you call in really specialize in your community and price range. Then ask for their honest opinions on the project you’re planning,” Nash says.

Homeowners who are unsure when they’ll move are often reluctant to ask for advice until they have a certain timetable. But Nash says good agents won’t pressure you to list your property until you’re ready.

“The idea here is to keep your eye on the prize. You don’t want to spend any money you won’t get back when you sell,” he says.

-- Don’t “over-improve” relative to neighborhood standards.

Tom Early, who twice served as president of the National Association of Exclusive Buyer Agents (naeba.org), says most purchasers are reluctant to pick up the tab for renovation work that raises a property above neighborhood standards.

“Even though many markets are now strong, buyers are still selective. They remain very focused on property values, and hate overpaying,” Early says.

What sorts of upgrades constitute “over-improvement”? For example, you’re unlikely to recoup the cost of adding a three-car garage in a neighborhood where most homes have no garage at all.

-- Avoid renovation work that reflects your personal tastes.

Nash tells the true story of an architect who owned a colonial house in a desirable urban neighborhood. Given his plans to retire and sell his high-end place, the man agreed to spend $150,000 for an ultra-modern kitchen renovation that suited his taste alone.

“What he ended up with was extremely minimalistic and included a bunch of tiny pin lights in his 12-foot ceilings. The buyers who came through thought it looked like an embalming room,” Nash recalls.

-- Bail out of renovation work that’s over-the-top.

If you think you’ve arranged for too much remodeling, Nash suggests you phone your contractors to negotiate alternative scenarios. For example, you might decide to forgo top-of-the-line kitchen and bathroom appliances and fixtures.

“Most buyers aren’t looking for the finest slabs of granite or super-brand stoves or refrigerators in the kitchen. It’s usually the overall look they want, not the famous brands,” Nash says.

Often, real estate agents can suggest less expensive products than those recommended by contractors. For instance, they might advise you to replace worn family room carpet with a generic brand.

Besides recommending alternative supplies, your listing agent may be willing to help you renegotiate the overall scope of your project.

“Perhaps you’ll face contract penalties for backing out of some of the work. But these charges will probably be far less than the cost of going forward with an ill-planned renovation,” Nash says.

-- Slow the pace of your renovation schedule.

As the architect with the ultra-modern kitchen discovered, a thoughtless pre-sale renovation can be costly. Nash says the ultra-modern design was so objectionable to buyers that he had to discount his property by 10 percent to close a deal for the house.

“People looked at that kitchen and groaned. All they could think of was how much they’d have to spend to bring it back to normal,” Nash says.

One reason the architect made his expensive mistake was that he was in a hurry to put his home up for sale and launched the kitchen redo without thinking through its implications.

“When you’re in a big rush with renovations, you’re at risk for putting a white elephant on the market,” Nash says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Joblessness has fallen and earnings are gradually rising. But a surprising number of Americans still live paycheck to paycheck, new research shows.

The problem, according to Jonathan Morduch, a New York University professor, is that many people endure dramatic swings in income, making it extremely difficult to save for hard times and compelling some to sell their home when divorce or a health crisis hits.

In a new book, Morduch argues that an increasing number of people live in perilous economic circumstances due to what he calls “the great job shift.” This refers to the increasing tendency of employers to cut back hours unexpectedly when times are slow or to compensate more workers through commissions or tipping.

In their book, “The Financial Diaries: How American Families Cope in a World of Uncertainty,” Morduch and co-author Rachel Schneider say many people lack the means to handle even relatively minor expenses, such as an unexpected car repair bill. And a big setback, such as a cancer diagnosis or a death in the family, could compel them to sell their home.

Unless your place is located in a red-hot market where buyers outnumber sellers, marketing your home in “as is” condition can mean letting it go for a sacrificial price. That’s why it’s usually a good idea to somehow find the funds for affordable improvements.

“In a lot of markets, low-cost improvements to your property, like a fresh coat of paint or new carpet, give you a good bang for your buck. But if you’re facing a financial crisis, I’d be cautious about trying to do a big rehab to your house,” says Daren Blomquist, a senior vice president with Attom Data Solutions, which tracks real estate transactions all over the nation.

Here are a few other pointers for cash-tight sellers:

-- Seek out help to purge your home of clutter.

One of the most crucial steps in preparing a property for sale -- ridding it of excess furniture and accumulations -- is also one of the least expensive, says Vicki Norris, a former real estate agent and author of “Restoring Order to Your Home.”

“Chaos and other people’s stuff are instant turn-offs to buyers,” says Norris, who runs a professional organizing firm.

However, to execute an effective de-cluttering plan, many homeowners need a support structure to gain momentum and keep on track.

For guidance at a fair price, you can hire one of a growing number of professional organizers. You can search for one in your area through the website of a group such as the National Association of Professional Organizers (napo.net). Or you can turn to a friend or family member willing to help sift through your possessions.

-- Give priority attention to minor kitchen upgrades.

Sid Davis, a veteran real estate broker and author, says your kitchen should be the focal point of your pre-sale home improvement program, but that upgrades in this part of your property needn’t be as pricy as many imagine.

“Some of the most important projects cost around $1,000 to $2,000 each,” says Davis, author of “Home Makeovers That Sell.”

Davis urges cash-challenged home sellers to “triage” in the kitchen, focusing on the projects in greatest need. One typically involves improvements to kitchen cabinets, “which very often have accumulated years of dirt and grunge.”

“If you have wood cabinets, you can make them look a lot better through a thorough cleaning with Murphy Oil Soap, followed by a rub-down with lemon oil. If that doesn’t do the trick, sand and re-stain your cabinets or paint them in a high-gloss white. Also, be sure to add new hardware, which shouldn’t cost you more than $50,” Davis says.

Another low-cost kitchen improvement involves replacing worn flooring. Davis says the skills needed for this task are easily acquired through a class offered at a home center store or online.

“Vinyl flooring is the cheapest, but the price for a nice tile floor has come down dramatically,” he says.

-- Recognize the importance to your sale of a fresh coat of paint.

One proven strategy for adding appeal to your interior is to paint the walls and trim throughout. For advice on painting technique, consult the websites of major paint companies, or borrow a manual or video on the topic from the library.

“The only major element to a good painting job involves solid preparation -- mainly sanding and surfacing -- and attention to detail. You can do it yourself, and that’s a lot better than hiring a high school or college student,” Davis says.

-- Look for low-bid contractors for the most difficult projects.

Are you a homeowner with limited funds to pay contractors for complex or potentially hazardous pre-sale repairs? Even so, Davis urges you to resist the temptation to do this work yourself.

To make the most of your scarce resources for home improvement work, Davis recommends you seek three to four competitive bids from contractors who come highly recommended.

“In every economy, contractors need to keep their crews working,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

When the financial downturn hit in 2008, most millennials were still in school, with other things to think about than serious financial matters. But now in their prime home-buying years, many are reflecting on the life lessons learned during that recessionary period.

“Young people ... remember how many in their parents’ generation struggled with foreclosures, short sales and other problems involving real estate. They don’t want the same thing to happen to them,” says Sophia Bera, a 33-year-old financial planner who heads a firm focused on clients in their 20s and 30s.

“So many young homebuyers are saddled with student debt. That alone has made them resistant to overspending for a property,” says Bera, a fee-only planner affiliated with the National Association of Personal Financial Advisors (napfa.org).

Of course, it’s tough to restrain mortgage borrowing to the limits of personal comfort for many whose salaries are growing slowly, if at all. A recent report by Attom Data Solutions (attomdata.com), which tracks housing markets throughout the country, found that it costs in excess of 43 percent of average wages to cover house payments in more than a quarter of U.S. markets.

Even if you’re a first-time buyer lucky enough to live in an area with reasonable housing costs, you’ll still want to be cautious about taking on a larger mortgage than you can comfortably afford. To be sure you won’t overspend, financial analysts say it’s wise to carefully calculate your living expenses before committing to a purchase.

“Run the numbers and make sure you stay skinny on your overhead,” says Dale Robyn Siegel, a home loan broker and author of “The New Rules for Mortgages.”

Your core living costs are expenses you must meet on a regular basis. They include outlays for food, transportation, child care and insurance coverage. They may also include any financial commitments you’ve made to a religious institution or charity. Together, these expenses constitute what many in the financial field call your “nut.”

“Your first task is to ensure you’ll have the funds to meet your nut every month. Otherwise, your stress level and quality of life could leave you greatly impaired,” Siegel says.

Here are a few pointers for first-time buyers:

-- Carefully calculate your core expenses.

Arlen Olberding, a financial planner affiliated with the Garrett Planning Network, urges would-be homebuyers to take a step-by-step approach. As a first step, carefully review your bank statements to see where your money has gone during the past six to 12 months.

“When it comes to spending, people are creatures of habit. Because of that, looking back at your personal spending history should help you project your future spending,” Olberding says.

After categorizing your past spending, it’s time to comb through the columns, determining which among your non-mandatory costs you’d be willing to trim.

“Establishing financial priorities is a very personal matter. There are no right or wrong answers,” says Olberding, who specializes in helping middle-income clients meet their money goals.

Once you’ve calculated your living costs, along with quality-of-life choices you consider essential, it’s time to compare this monthly total to the net income you’re bringing in. The difference should be the funds available to cover your mortgage expenses, along with home upkeep and utility costs.

-- Realize that lenders could let you overshoot your budget.

After the recession, mortgage lending standards became stringent, and still remain so. Yet ironically, Siegel says many who can jump over lender approval hurdles are still able to borrow more than they reasonably should. Why? Because the full extent of their living costs isn’t apparent to the lender who reviews their file.

For example, when assessing your affordability range, a lender won’t take into account private debts— -- like the regular payments you owe your mother who advanced you the money to buy a new car.

“If an expense doesn’t show up on your credit report, the bank doesn’t know about it,” Siegel says.

-- Factor inflation into your living-cost calculations.

Although the government’s Consumer Price Index has shown little movement in recent years, inflation is still a factor for many households. Especially hard hit are families with young children who face hefty daycare costs.

Along with child-related expenses, health-care costs have also risen dramatically, led by the cost of employee contributions to health plans and the premiums paid for the kind of individual policies used by those who have no access to insurance coverage through work.

“At any age, medical care costs can sneak up on you. This is particularly likely if you’ve had an accident or a major illness and you incur big co-pays for treatment,” Olberding says.

In assessing their living costs going forward, Olberding advises clients to factor in average price increases of as much as 5 percent per year for their core expenses.

“No one is immune from inflationary increases. So, it’s always better to err on the high side when you’re preparing a spending plan,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)