Most first-time home buyers, typically tight on money going into the transaction, are usually even more strapped for cash for a while after settlement day.

More than half of first-time buyers - especially in older areas of the country - choose older, generally less expensive houses. But even those who gravitate to newer houses, townhouses especially, tend to defer some of the bells and whistles for financial reasons.

"Most (first-time) buyers purchase homes that need some work, either cosmetic or a gut job," said Nella Genovese, a real estate agent with Plumer Associates. "They change the color of the walls, redo their floors or refinish, if the floors are wood."

They also do window treatments, and, if they have gardens, they replant, she said.

"Mostly during the first year, they are changing the house to their personality," Genovese said. "Those that purchase a new home or condo just decorate with new furnishings or add a few items to make it feel new."

Laura Pratt's first house was a "brand-new house in Yardley," Pa., she said.

"All we did was paint. It just had cream-colored walls throughout, so we painted to add some color to the house," Pratt said. "In the seven years we lived there, we painted all three bedrooms, plus 2 1/2 bathrooms."

Her second house, in Paoli, Pa., was only 12 years old but "was in need of a lot of interior maintenance," she said.

"In the first year, we gutted and remodeled the kitchen, painted all the four bedrooms and wallpapered or painted the 2 1/2 bathrooms," she said.

For Don and Juli Vitello, the problems began before they even crossed the threshold of their first house, a stone twin in Philadelphia, on Valentine's Day 1985.

"The front porch was covered with ice, so I slipped and fell on the way in," said Juli Vitello, senior segment producer on Comcast's "Your Morning on CN8."

"When we went to hang our coats up, we realized that there was not one closet on the whole first floor," she said. "The next morning, the pilot light on the water heater blew out, so there was no hot water."

The immediate reaction: "Buyer's remorse," she said. "I wanted to give the house back to the previous owners."

What do first-time buyers spend their money on in the first year?

For Margaret Conway, who bought her house in Philadelphia three years ago, it was a lot of things.

"My partner and I installed a carbon-monoxide detector, painted the interior of the house, installed two ceiling fans, replaced faucets on a utility tub, caulked some of the windows, installed shelves in the basement and garage, made and installed a workstation for the laundry area, installed a new fluorescent light fixture in the basement, replaced the shower head and installed a gutter and a downspout on the Florida room," she said.

Among other things. We will not even talk about the honeysuckle and poison ivy they removed.

Painting is the No. 1 improvement by first-timers. Of course, that can be motivated more by taste than by necessity. A lot of buyers, first-time or otherwise, may buy a house despite the color of the walls, then head to the store as soon as the papers are signed.

Next on that to-do list: the water heater.

"In the first year, we repainted the master bedroom and kitchen and replaced the hot-water heater," said Robert Collela of Cherry Hill, N.J. More storage is high on the list, as the Vitellos' experience indicates. "In Year One, Don (a TV director/producer) built a gigantic closet in our mudroom," Juli Vitello said. "Two years later, we added a large bathroom to our third floor and turned two rooms into a master suite."

There are never enough bathrooms, so even if first-time buyers are low on funds, the smart ones plan ahead.

"On the night we made our bid on the house, we had a plumber in to determine if we would be able to add the third-floor bathroom when we could afford it," Juli Vitello said. "It was a big part of our decision."

Contractors who work with first-time homebuyers tend to be teachers and hand-holders, as well, said John Fries.

"You've got to help them establish priorities," Fries, a Philadelphia contractor, said. "If they need to take care of the roof first before hiring you to make built-in bookcases, it is your job to tell them that.

"They also tend to be rather innocent about things, so you have to work with them so they know how to establish priorities," he said.

Finding someone who has studied first-time homebuyers and their first-year activities is akin to searching for water in the desert.

But remodeling surveys by the Joint Center for Housing Studies at Harvard University and by the National Association of Home Builders do show how much first-timers spend. The figure is $2,070 a year for first-time homebuyers under age 35, according to the Joint Center.

The amount spent by first-time buyers rises with income level, starting at $2,050 for those earning less than $40,000 and increasing to $4,820 annually for people making $120,000 or more.

American Express Co. compiles a retail index annually on home-improvement trends. The most frequently cited reason for making exterior and interior changes is "changes in personal taste."

Other major factors include mandatory maintenance (such as roof work), the need for more space and emergency repairs.

If money were no object, project choices would include adding a room, building a porch or deck, completely rebuilding the house, putting on a new roof and installing a swimming pool, said American Express vice president Ronald Shultz.

Lowe's Cos. Inc. has not targeted first-timers for a survey, spokeswoman Julie Valeant Yenichek said, but the chain does focus on inexpensive improvements that new homeowners might make.

These include hanging pictures, or hooking up washers and dryers or the cable-TV box, or fixing squeaky or sticking doors and drawers, and small plumbing problems that might not require a plumber.

"Before you start knocking down walls or tearing out tubs, consider how long you expect to live in this house," said Melissa Birdsong, Lowe's director of trend forecasting and design.

"If you don't anticipate being in your current home very long, be careful not to overimprove by spending more than you could recoup when you sell your home," she said. "Make choices that will yield results that not only meet your own needs, but that are also consistent with upgrades in other houses in your neighborhood."

The National Association of the Remodeling Industry in Alexandria, Va., has identified some common mistakes made by homeowners.

These include hiring the wrong contractor, selecting inferior products to save money, overextending on a do-it-yourself project, improper planning, not taking all choices into consideration, starting the project at the wrong time, not managing your budget and overimproving for the neighborhood.

Another mistake is "the domino effect" - installing a new kitchen, for instance, then deciding the living room looks shabby, and so on, until you break the budget.

Fries finds working with new homeowners rewarding for a variety of reasons. "Most of all, it allows you to build a relationship of trust," he said. "In the long run, that means repeat business for you, and their recommending you to their friends."