Plan on making a few updates to spiff up the house? Keep the "few" in mind.

 Two demons wait for unsuspecting homeowners, hoping for their chance to gobble up time and money on new home and remodeling projects. The are called The Ripple Effect and Project Creep.

• The Ripple Effect lurks quietly in the background. Just like the movements on the pond surface for which it's named, The Ripple Effect starts out small and grows, expanding until it engulfs the entire project.
• Project Creep is a silent menace, staying out of sight until it's too late to avoid and putting the whole job at risk.

The Ripple Effect is the remodeling budget's worst enemy and can wreak havoc on small and large projects alike.

A window replacement is a simple, isolated project, right? But the interior and exterior trim must be replaced and painted, and the exterior siding may have to be reworked, especially if the new window isn't the same size as the old one.

And that's just the beginning. Once that window is replaced and the new window trim painted, the rest of the trim in the room looks bad by comparison, and so you decide to paint that, too. A pebble has been dropped in the pond, and the ripples have begun to spread.

What started out as a simple window replacement ends up as the refinishing of an entire room.

In new home projects, The Ripple Effect is more pronounced in open plan designs. With fewer walls to separate spaces, it's difficult to make flooring transitions from one room to another so more expensive flooring materials often cover more of the house. The lack of interior walls also requires a more expensive structural system and makes the placement of duct work and plumbing more difficult.

Don't Make Waves

But The Ripple Effect can be controlled if you take a moment to consider the impact one project can have on other parts of the house. The root of the problem in the window replacement example is that a new standard-sized window won't exactly fit the existing opening, necessitating the replacement of the trim.

But a custom-sized window, carefully installed, might allow you to reinstall the existing trim inside and outside, and avoid The Ripple Effect entirely. Sure, you'll spend more on the window, but you'll save everywhere else and avoid The Ripple Effect.

And in a new home project, careful planning of the room layouts and space adjacencies allows flooring and other finishes to "break" where you want them to.

 Project Creep

Project Creep is a close cousin to The Ripple Effect. Project Creep happens when the extent of the work begins to grow, creeping along at first, until no one seems able to control the spiraling costs.

Older homes, for example, often require building code upgrades when they're remodeled — upgrades that may have little to do with the project itself. When structural loads are changed in any way, for example, the existing structure must be rebuilt or retrofitted to meet updated code requirements. And moving structure usually means reworking the wiring, duct work and plumbing that's been routed through the area.

Project Creep can attack new home projects, too. Sometimes the causes are almost impossible to predict, such as when the excavation of the site uncovers poor soil conditions. Sometimes the cause is an outside force — an architectural review board, for example. But mostly, Project Creep is a result of a difference in expectations between homeowner, builder and architect.

Plan ahead to avoid Ripple and Creep

On any project, start with a clear idea of the level of finish and quality you expect. Don't assume that the architect and builder are in tune with your ideas about finishes. Discuss your expectations in detail and, whenever possible, see the actual finishes and fixtures.

If you're not the detail-oriented type, hire a professional interior designer.

Poor quality drawings cause additional unplanned work during construction and always end up costing homeowners money and time. My firm has been hired many times to correct drawings done elsewhere that contained glaring errors, omitted necessary structural steel or just plain didn't work.

Sloppy drawings are an open invitation to Project Creep

On a remodeling or room addition project, evaluate the feasibility of the project in terms of the impact it will have on parts of the home that you're not intending to remodel. Often, room additions can easily be designed to minimize the effect on the existing structure.

Finally, always have realistic expectations about your project budget and communicate that budget to your architect and builder. When everyone understands the project's financial goals, the chances for success are greatly increased.

Related:

• Nine unconventional ways to improve your home
• Top five requests for home design
• Beware of value-killing renovations

Richard Taylor is a residential architect based in Dublin, Ohio and is a contributor to Zillow Blog. Connect with him at http://www.rtastudio.com/index.htm.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Zillow

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Got that sinking feeling? Amid signs that the U.S. housing market is finally rising from a long slumber, real estate Web site Zillow reports that homeowners are still under water.

Nearly 16 million homeowners owed more on their mortgages than their home was worth in the first quarter, or nearly one-third of U.S. homeowners with mortgages. That’s a $1.2 trillion hole in the collective home equity of American households.

Despite the temptation to just walk away and mail back the keys, nine of 10 underwater borrowers are making their mortgage and home loan payments on time. Only 10 percent are more than 90 days delinquent.

Still, “negative equity” will continue to weigh on the housing market – and the broader economy – because it sidelines so many potential home buyers. It also puts millions of owners at greater risk of losing their home if the economic recovery stalls, according to Zillow’s chief economist, Stan Humphries.

“If economic growth slows and unemployment rises, more homeowners will be unable to make timely mortgage payments, increasing delinquency rates and eventually foreclosures," he said.

For now, the recent bottoming out in home prices seems to be stabilizing the impact of negative equity; the number of underwater homeowners held steady from the fourth quarter of last year and fell slightly from a year ago.

Zillow map: Where homes are underwater

Real estate market conditions vary widely across the country, as does the depth of trouble homeowners find themselves in. Nearly 40 percent of homeowners with a mortgage owe between 1 and 20 percent more than their home is worth. But 15 percent – approximately 2.4 million – owe more than double their home’s market value.

Nevada homeowners have been hardest hit, where two-thirds of all homeowners with a mortgage are underwater. Arizona, with 52 percent, Georgia (46.8 percent), Florida (46.3 percent) and Michigan (41.7 percent) also have high percentages of homeowners with negative equity.

TODAY's real estate expert Barbara Corcoran discusses how using bright colors in your home decorating can help attract buyers to your home. 

Looking to unload your home? Trying to buy a new one? Everybody knows that "cozy" means shoebox-sized and "lively" means that the neighbors will probably keep you up with their jug band, but what about things like "American style" and "kid-friendly"?

Real estate expert Barbara Corcoran came by to be your realtor-to-English translator.

Unique = Bad news. Decorated or built by oddballs.
Needs a little TLC =  It's falling apart.
Kid friendly = It's a mess.
American style = ANYTHING. Basically, that the house is "in America" and potentially decorated in poor taste.
Country living = It's in the middle of nowhere.
Home office = The toilet is in the middle of the living room.
Move-in condition = Please move in, let's go, we need money and the house has been ransacked.

Ever end up checking out something scary because you didn't see through the advertising lingo? What's your craziest open-house story? Tell us in the comments.

Julieanne Smolinski is a TODAY.com contributor. She has lived in a lot of "unique" places.

More: Want to look better in pictures? Just look to the left
21 of the most annoying pet peeves, ever

Jeff Christensen / AP

Barbara Corcoran

For most of us, buying or selling a home is one of the biggest decisions we will ever make. And the hardest part is negotiating a fair price. 

The whole concept of negotiating can be daunting. If you are too tough, the other party may just walk away. If you are too eager, you may get ripped off.

Do you have a question about real estate negotiations? Do you wonder how to choose the right broker for you?  

Barbara Corcoran will answer your questions on the air this Saturday. You could be chosen to ask her live via Skype or the phone yourself! 

In the comments field below, ask your question. And Barbara may be talking with you Saturday on TODAY.

You think it’s hard to sell a house? Try selling a timeshare. It’s nearly impossible. That’s why con artists are working the market. They hope to cash in on owners who are desperate for help.

“There are tens of millions of dollars being bilked from people who are trying to unload their properties because they need the money,” says Lois Greisman, head of the Division of Marketing Practices at the Federal Trade Commission.

On Thursday, a Florida couple who ran Timeshare Mega Media and Marketing Group – a company that’s alleged to have defrauded thousands of people out of at least $2.7 million – settled an FTC complaint by agreeing never to work in the timeshare resale business again.

The FTC complaint alleges the company’s representatives told timeshare owners they had buyers lined up and waiting.

“In many cases, defendants begin the call by representing that they have a buyer for the consumer's timeshare unit and that the sale can be closed within a specified period of time, often 30 to 45 days. Defendants also typically tell consumers the price the purported buyer is willing to pay for the timeshare unit, which frequently is at or above the consumer's asking price.”

A fee, typically $1,996, was required to get the process started. But that money was supposedly refundable when the sale closed.

The feds says people who took the bait received a contract to “advertise” their timeshare. A clause in the contract specifically said the company did not represent or guarantee that the property would be sold or rented, directly opposite of what the telephone salesperson stated.

The FTC says many people who signed the paperwork assumed it was a sales contract. Those who questioned the contract’s validity were given the run-around and falsely told that a sales contract would follow.

The government’s complaint says the company never had any timeshare buyers lined up and never actually assisted anyone in selling a timeshare. People who demanded a refund rarely got one.

Protect yourself
Timeshare resale scammers target people who advertise condos for sale. But they also work off lists of timeshare owners. So any owner could get a called by a timeshare resale scammer.

“When someone contacts you out of the blue and they say, ‘Pay me now; time is of the essence. You’ve got to pay upfront to seal this deal.’ Don’t do it,” warns the FTC’s Greisman.  “That is as large of a red flag as you’re ever going to see.”

More information

• FTC consumer alert: Selling a timeshare through a reseller 
• Press release: FTC action results in ban against couple from telemarketing, timeshare resale services 

Lacking confidence in the housing market, most Americans are not moving this year. And since they’re stuck, most have some sort of home improvement project planned for 2012, according to a new survey.

The American Express Spending and Saving Tracker “Home Decision 2012” survey says that 10 percent of Americans – 23 million people – plan to move. Of these, 44 percent plan to buy a home and 42 percent say they will rent. As for the other 14 percent? Amex doesn’t say, but maybe mom and dad should clean out the basement.

The home improvers? Seventy percent say they have a project. They plan on spending an average of $3,500, or roughly what a contractor charges for 28 minutes of work plus lunch (we kid). Of those projects, 58 percent will be interior remodel and the top project in that category is paint, 37 percent.

Twenty-four percent must not have allergies; they plan on doing some sort of landscaping.

The survey report noted that Americans still don’t trust the housing market will get better. Fifty-two percent are “not very/not at all” confident they’d get their asking price if they listed their current residence.

Read the full American Express Spending and Saving Tracker “Home Decision 2012” report.

The material was first reported in the Wall Street Journal. 

Mike Blake / Reuters

Overview of a subdivision of single family homes in San Marcos, Calif. The nation's banks own more than 600,000 single-family homes, according to RealtyTrac.

If anything is certain about the foreclosure crisis, it's that it isn't over. That fact has important implications, not only for people losing their homes, but also for those planning to sell or buy a home this year.

As of January, about 3 million properties were in foreclosure, headed that way or already owned by banks, according to CoreLogic, an information, analytics and business services company in Santa Ana, Calif.

Approximately 1.6 million of those homes were believed to be within the so-called shadow inventory, a supply of foreclosure properties not yet listed for sale. It's a major stumbling block to a housing recovery, says Mark Fleming, chief economist of CoreLogic.

"It puts downward pressure on home prices, which hurts home sales and building activity," Fleming said in a statement.

Given that prelude, here's what sellers and buyers can expect.

Price

Foreclosures and short sales have widened the gap between sellers' and buyers' perceptions of prices. Sellers "think their home is worth more than it really is" and buyers "think the prices are too high," says Louis Cammarosano, general manager at HomeGain, a real estate information website in Emeryville, Calif.

One cause of that gap is realty brokers' tendency to scrub foreclosures and short sales from comparable sales data used to set sellers' asking prices. While sellers might feel a moral justification for that approach, Cammarosano says it's "disingenuous" because the status of the seller's mortgage isn't important to buyers.

"(Just because) you happen to be paying your mortgage, that doesn't mean the buyer has to step into your shoes and pay your inflated price," he says.

Interest rates

Traditionally, mortgage rates have been something of a wild card for homebuyers. But that's not the case today because the Federal Reserve has announced its intention to keep rates low at least through late 2014. That's not a guarantee, but it has taken some of the urgency out of homebuying and put more buyers into a wait-and-see pattern.

"The perception that prices could go lower, a lot of foreclosures in the pipeline and (the expectation) that rates will remain low -- that's certainly keeping some people on the sidelines," Cammarosano says.

Location

Buyers might be reluctant to purchase a home in a neighborhood plagued by foreclosures and short sales. But Stephen Israel, president of Buyer's Edge Co., a real estate brokerage in Bethesda, Md., says buyers can take a clue from real estate investors who are looking at areas that have been hard hit, yet might be prime for a turnaround.

"Investors are interested in neighborhoods that were beat up by foreclosures and that have other redeeming features that they then believe will be the first to bounce back," he says.

Those redeeming features might include easy access to public transportation, well-regarded schools, attractive shopping centers and other positive infrastructure elements. Neighborhoods that have such amenities can be "really interesting pockets, where there could be some very good values," Israel says.

Condition  

Foreclosure and short sale homes are often, though not always, in worse shape than other homes on the market. That's especially problematic for buyers if a home has been vacant a long time because neglect can result in problems in plumbing, heating, cooling, electrical and other systems.

"There is a big difference," Israel says, "between a property that has been vacant a few weeks and one that has been vacant a year or more."

A home that's in poor shape might not be a bad buy if the buyer understands the risks, he adds.

Sometimes, though, those risks can be difficult to assess if the term of vacancy isn't known or the water, sewer, electricity and gas have been shut off. The utilities not being in service is "an interesting part of this equation that people miss all the time," Israel says.

Buy or sell

The bottom line for buyers is that they need to "buy smart," to use Israel's term, researching neighborhoods and being aware of a home's actual condition beyond its cosmetic appearance.

The bottom line for sellers, Cammarosano says, is that they need to get serious about pricing, cleaning, decluttering, staging and improving the value and desirability of their home.

"That's getting real," he says. "And if that's not what you want, don't sell it."

More from Bankrate.com

• Strategic default: business, not personal
• A second chance with HARP
• How to do house walk-through before closing
• Emotions of buying a home
• What buyers want

TODAY Money expert and msnbc.com senior writer John Schoen joined us for a live web chat Wednesday to talk about the housing market.

Here is John's answer to one of the questions in the chat and a complete archive:

One chat guest asked:

“Good morning John. I am going through a divorce right now and getting ready to refinance the home in my name only. Are there any tips you might recommend or things to watch out for? I am working directly with a mortgage broker because there are so many moving parts.”

John replied:

“I would be more concerned with how the refinance will affect your divorce settlement than with getting the best rate or mortgage terms. That’s the limit of the broker’s expertise. They’re not equipped to give advice on the laws governing marital property, which are different in each state. So I would rely on my attorney for advice about how to refinance and let the broker stick to getting you the best terms.”

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.

By Erika Riggs, Zillow

The hottest acts in the music business earn their pay by living in the recording studio or on the road. On Sunday, the music makers get their chance to shine on the red carpet when awards season turns to the 54th Grammy Awards at the Los Angeles Staples Center. But even pop stars need a place to crash once and awhile. Here is where Kanye, Rihanna, Katy Perry, Christina Aguilera, R. Kelly and the Kings of Leon call home.

Kanye West

Song of the Year, Best Rap Album, Best Rap/Sung Collaboration, Best Rap Performance

Kanye West has increased his bad boy status for his scene-stealing antics at awards shows. And with a critically acclaimed new album, and tour with fellow rapper Jay-Z, Kanye might be ready to pull off another unscripted surprise. The artist is nominated this year for seven awards, including Song of the Year for his  "All of the Lights" with Rihanna, Fergie and Kid Cudi.

West picked up his LA digs in 2003 for $1,750,000. The 2002-built home was described as a "modern masterpiece." Designed by a "world-renowned Italian architect," it likely appealed to West's love of style. The 3-bedroom, 3.5-bath piece of Hollywood Hills real estate sits on a winding drive with views of the city below. It was listed for sale for $3,995,000 in 2010.

Rihanna

Album of the Year, Best Rap/Sung Collaboration, Song of the Year

Another year, another Grammy nomination for Barbados-born singer Rihanna — or three. The ubiquitous crooner, who could sing the phone book and make it sound hot, is up for a trio of awards, including Song of the Year for her collaboration with West.

While Rihanna's luck in her musical career has been stellar, her luck in real estate has been the exact opposite. RiRi bought her Beverly Hills modern mansion, above, for $6.9 million, but later filed several lawsuits against the builder, previous owner, home inspector and real estate agents. She charged that her home was poorly constructed, with numerous water leaks causing extensive damage. She then listed the home as a $4 million short sale. There's no word where the star is staying now, but her real estate drama may leave her a little gun-shy when it comes to purchasing new digs.

Katy Perry

Best Pop Solo Performance

Katy Perry ended her year on a sour note with an impending divorce to husband Russell Brand, but the pop diva could ring in the new year with another Grammy win.

Before Perry and Brand called it quits, the two shared a stately 3-acre Los Feliz home, pictured above, that Brand purchased as a Christmas gift for Katy in 2009. The pair listed the home on the Los Feliz real estate market in May 2011 for $3.395 million; it sold for $3.3 million.

Perry and Brand bought another, bigger, home in Hollywood Hills in June 2011, where movers were spotted hauling Brand's stuff away. Whether Katy sticks with this property remains to be seen.

Taylor Swift

Best Country Solo Performance

The strumming blonde has already won 4 Grammys, as well as numerous other awards, including her Album of the Year in 2010, making Taylor Swift the youngest artist in Grammy history to nab the coveted award.

Although Swift owns two homes in Nashville — one is currently on the market — she left the country music capital to make Tinseltown her primary residence when she bought a private piece of Beverly Hills real estate in April for $3.97 million.

Swift's new home, above, is a charming Cape Cod-style home situated on an over-an-acre lot with 4 bedrooms and 4 bathrooms.

Christina Aguilera

Best Pop Duo/Group Performance

A year ago, things were a little rough for Christina Aguilera. There was a lyrical snafu at the Super Bowl, a spill at the Grammy's, a highly publicized divorce, and a public intoxication arrest. So far, 2012 appears to be going a bit better for the diva, who is in her second year on NBC's "The Voice," and has a Grammy nomination for "Moves Like Jagger" with Maroon 5.

Maybe that portends a turnaround in real estate for Aguilera as well. Although she was finally unable to unload one of her properties, she still has a home for sale in Beverly Hills.

The stucco mansion was put up for sale on the Beverly Hills real estate market in March 2011 for $13.5 million and although it's been nearly a year, Aguilera hasn't dropped the price. The home was previously owned by rocker family The Osbournes. They sold the whimsical property to Aguilera and her former husband Jason Bratman in 2007 for $11.7 million.

R. Kelly

Best R&B Album

It's been a decade since R. Kelly picked up a Grammy for "I Believe I Can Fly," which received three nods for Best R&B Song, Best Male R&B Vocal Performance and Best Song Written for a Motion Picture. Now the singer has been nominated for his album, "Love Letter." Maybe he can again add a another trophy to his other award wins, including those at the AMAs, Billboard Awards and BET Awards from years past.

As for real estate, R. Kelly faced a $2.9 million foreclosure suit earlier this summer, although reports were that it was a strategic foreclosure. The singer-songwriter moved out of his mansion and stopped making payments to force the lender to make a loan modification. The home is now formally listed as a short sale for $1.595 million.

Built in 1997, Kelly's Olympia Fields, IL mansion is only 30 miles from his hometown of Chicago. The 22,000-square-foot home sits on a private, wooded lot surrounded by a 12-foot high concrete and wrought-iron wall.

Kings of Leon

Best Rock Album

The Grammys are old hat for Kings of Leon. The American rockers won both Record of the Year and Rock Song of the Year in the 52nd awards. The family band, comprised of brothers Nathan, Jared, and Caleb Followill,  and cousin Matthew Followill, also picked up nominations the following year for Best Rock Song and Best Rock Performance in the 53rd Grammys. This year, the group is back with a nominee for Best Rock Album.

Amidst the hype of winning their first Grammy Awards in 2010, Jared Followill decided to hop on the real estate train and purchased a gorgeous Nashville home in his home state of Tennessee. Followill's home, above, is a new construction property by Rogan Allen and sits on a private hilltop lot measuring just over an acre in size. The 7,441-square-foot home has three stories, 5 bedrooms, 6 bathrooms and gorgeous views of the Davidson County countryside. Public records show Jared dropped $1,825,000 for his new pad — a hefty step up from the "small, fixer-upper" he was apparently living in before.

Today Money financial expert David Bach joined us for a live Web chat Wednesday to answer your questions.

Here’s one of his answers to questions from the live chat. (See below for the full Q&A and video of David’s TV appearance this morning.)

Jennifer asked:

“My husband and I are 30 and because we were in graduate school most of our 20s, we are just starting to save money. At what point in life does it make sense to get a financial planner? How much should a financial planner cost?”

David replied:

“I think the sooner you get a financial planner the better. With that said, you should read up on investing before your hire one so you know what questions to ask and you are prepared better to screen a good advisor from a bad advisor. Read Smart Couples Finish Rich, before you hire a financial advisor. In this book I also layout how to hire and how to pay a financial advisor. The cost to do a basic financial plan is around $500 to $5,000 depending on how detailed it is. Then there are costs to work with the financial advisor. Most advisors today charge a flat fee on assets of around 1%. You can also hire financial advisors by the hour. Hope that helps you get started! Lastly before you hire a financial advisor check out their background online by visiting the NASD website and make sure there are not any complaints or legal issues with the advisor.”

Here’s the full chat archive and David’s TV appearance:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.