Earlier this month, President Obama extended and expanded the First-time Homebuyer Tax credit, which was originally set to expire on Nov. 30.
Both first-time buyers and current homeowners will now benefit from purchasing a new home before May 1 of 2010.
Under the new program, buyers who haven't owned a home in the last three years will continue to receive up to an $8,000 credit for a new purchase. And current homeowners are eligible for a credit of up to $6,500, as long as they owned their home for at least five of the last eight years.
This, of course, is likely to spur house sales, which were already up 9.4 percent in September, according to the National Association of Realtors.
Naturally, the first thing you want to do after moving into a new home is decorate. You want the new place to reflect your taste and your family's lifestyle.
Decorating doesn't have to be priceyUnfortunately, whether you're in a new home or simply sick of your old style, decorating can get pricy. But that doesn't mean it has to be. I turned first to Bob Williams, of the furniture company Mitchell Gold and Bob Williams and co-author (with Gold) of "The Comfortable Home: How To Invest In Your Nest" for help.
- Repurpose. Often, just rearranging or updating pieces can give you the change you seek. In fact, you really shouldn't buy anything until you take stock of what you have, says Williams. "A lot of times, it's taking an inventory and then repurposing the stuff you already own. This often doesn't cost anything." Move a table into a different room, or cover your existing couch with a slipcover, and you may very well see the room in an entirely different way. This is particularly true if you're moving into a new home because what you once considered old and drab may look fabulous in a different setting.
- Focus on small changes. It's a good idea to keep large pieces fairly basic since they're generally costly and you want to appreciate them for as long as possible, says Lisa Quinn, author of the upcoming book "Life's Too Short to Fold Fitted Sheets." But small pieces like throw pillows, lamp shades and accessories can go a long way to making an entire room look better, and if you shop around, you can find these items at great prices. Quinn suggests using vintage dishes from eBay as artwork by hanging them on a wall in an interesting pattern. You can also hang projects by your kids or stretch a beautiful piece of fabric over a canvas for an easy and inexpensive splash of color. Wallpaper, used not on your walls (it's often expensive and difficult to remove if you change your mind), but on the back of a bookshelf is another great way to add color and texture.
- Set your own budget. You should spend as much or as little as you want -- and can afford, says Williams. "It's important to sit down and come up with a budget, sorting out the things you need and then taking that dollar figure and breaking it down so you have a budget for each thing." The overall budget should be set in stone -- otherwise, you're almost guaranteed to overextend yourself -- but each individual category can be a bit flexible. If you find a table you absolutely have to have, and it's more than you planned for, you can always save a bit on another purchase. In general, splurge on things designed to last a long time -- a mattress, heavy pieces of furniture, appliances -- and skimp on trendy extras. "I like to keep my accessories cheap, because I'm fickle and tend to change my mind after a while," explains Quinn.
- Go for functionality. "The one thing I tell everyone is to really think about how the room is going to be used. Is there going to be a big television, or is this going to be a place for conversations or game playing?" says Williams. Those types of things will really influence your purchases -- TV rooms require big, cushy couches, and more formal entertaining rooms need couches and chairs that allow you to sit up and look people in the eye so you can communicate back and forth. You also want to take note of any focal points in the room, says Williams, like a fireplace or picture window. If there isn't one, he suggests creating one with an antique armoire or a sofa with a mirror or beautiful painting set above it.
- Shop smart. First of all, this is not the place for trial and error, particularly if you're purchasing non-refundable pieces (from antique stores, for instance). "Make sure you measure your room down to the T, so you know how high the windowsills are, how tall the ceilings are. Make notes and carry them around," explains Williams. To find inexpensive pieces, check out consignment shops, thrift stores or architectural salvage yards. "Look for shapes, not colors," says Quinn. "You may find a chair that has a great shape, but an awful color. Paint is cheap." She also suggests the scratch-and-dent section of department and furniture stores. Often you'll discover things that have been marked way down because of an imperfection that is easily repaired or simply hidden.
With reporting by Arielle McGowen
Jean Chatzky is the financial editor for NBC's "Today," a contributing editor for More magazine, and a contributor to "The Oprah Winfrey Show." She is the author of six books, including the book The Difference: How Anyone Can Prosper in Even the Toughest Times (Crown, March 10, 2009). To find out more and to read her blog, visit her Web site, www.jeanchatzky.com
