For Sellers who absolutely, positively must sell.

For Sellers who absolutely, positively must sell, here are some of the current incentives and strategies in use today:

CARRYING THE NOTE:  Offering buyers seller-financing "carry-back loans," which are essentially mortgages or loans financed by the seller. This can be risky.  Partition the "carry back" amount into a first and second Purchase Money Mortgage prevents the new owner from obtaining additional financing that would weaken the home's equity position in the event the seller is forced to repossess the home. This works best if the home does not have an existing mortgage, many of which contain "due-on-sale" clauses, meaning the mortgage has to be paid in full if ownership is transferred. Many lenders have been passing up their right to invoke the clause because they're happy that the payments are still being made. This could be risky and Sellers should try discussing this with the lender and seeking written approval first.

Cash-back and credit offers:   These include offering to pay a year's worth of property taxes, a year's worth of mortgage payments, or a year's worth of owner's association dues if the home is in a planned unit development or condominium project. "Cash-back" offers can be credited toward buyer's down payment, repairs, landscaping, closing costs or mortgage points.

Glamour and glitz:  Exotic vacations, airline tickets, timeshares, cars, jewelry, season tickets for professional sports, art, high-definition TVs, $5,000 gift cards for gasoline, Macy's, Costco, Home Depot, etc. . .   also, anything the Seller has of value that can be thrown in !!

Lease-to-own options:  This is attractive to buyers who believe the market might drop further or for buyers who are short on down payments or who can't get traditional financing in tightening credit markets. Option structures differ greatly. A rent-to-own agreement, also called "lease-to-own" or "lease-purchase," is a binding agreement to buy the home at a set price at the end of a period of time. It offers a little better security for the seller. A lease-option arrangement gives the renter a legal buy-option after a given period, but isn't an obligation. Applying some or all of the rent payments can be included as additional incentives.

The BIGGEST incentive of all -- proper pricing:  A home must be priced correctly in relation to comparable sales (over the last 4 months) not the 2004-2005 pricing that other sellers got. It's a new market with new values. Sellers MUST get their eyes off "the old market." Incentives and everything else take a back seat to this as the TOP Buyer incentive . . .  hands down !