Homebuilders: Buy Now, We'll Throw in a Car

The National Association of Home Builders found that 45% of its members offered incentives during 2006, which is when the current boom began ebbing. In 2007, the figure jumped to 56%. Estimates for this year are sure to be higher.

Among the popular enticements are flat-screen TVs, custom closets and iPhones. Other offerings include Caribbean cruises, airline miles, and even the ultimate in new home luxury -- a built-in Sub-Zero refrigerator. In lieu of these, some communities also allow you to choose a cash option, which can be used to pay down closing costs. Since developers seem ready to give away merchandise and cash, is it smart to play hardball and negotiate for a better deal? Say, perhaps, a flat screen in every room?

"You may be able to get a better deal, but it's also best to be smart about the market," says Todd Rich of New Home Trends, a Bothell, Wash., provider of real estate information that examines property sales in the Northwest. "You could push a developer to give up more of an incentive, but you've got an unknown factor that could be working against you, which is the interest rate."

In other words, while you're on the phone with the sales staff for a week or two in an attempt to pump up the quality of travertine stone in the bathrooms, mortgage interest rates may tick higher. And while you might get that extra incentive by waiting, the added mortgage interest will make sure you're paying for it for a long time.