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

"It's not like you're dealing with a car salesman who has a lot full of SUVs no one wants," says Rich. "Developers have an advantage. What they're selling will go up in value eventually. Homes are appreciating assets and you need to treat them as such."

But if you're in the market for a new house and a developer is experiencing slow sales, it's probably worth a try to see how much you can get out of him.

"I never gave incentives to buyers," says Ken Wilson, a retired developer in San Diego. "But if they were nice enough to pay my price, I gave them little extras like free carpeting and drapes. Tell (the developer) how much you like the house, how it would look great with this or that upgrade and then stop. He'll probably put out his hand and you've got a deal."