You're shopping for a house, not for a Caribbean cruise or a car lease. Recently The New York Times reported on a condo seller who was offering to give the buyer a year's use of a leased Mercedes-Benz E-Class sedan.

Razzi says you'll find all sorts of gimmicky incentives from condo sellers. They offer flat-screen TVs or weekends at vacation homes, or more creative inducements. "That has nothing to do with the transaction at hand," Razzi says. If there's an incentive, make sure it has something to do with the dwelling -- upgraded countertops, decorating allowances, payment of mortgage closing costs, that sort of thing. "If they're willing to subsidize it with a $500 TV, ask for $500 off the asking price," she says.

There's another gimmick to avoid: what O'Connor calls "magic loans." This is the time to avoid mortgages such as pay-option ARMs and interest-only loans, she says. If you can't afford it with a more mainstream loan, such as a 30-year fixed or a 5/1 ARM, you can't afford it. Not in this market, where house values could drop and mortgage rates are almost sure to rise.