Developers have reduced their prices significantly since mid-2006 and many offer a variety of incentives for your buyers.

Among those incentives are sizable upgrades, reduced down payments, funds back at closing for up to a year of payments, closing costs paid by the developer, one or two years of HOA fees (Home Owner Association or Maintenance), no fees for leasing an investor's unit, and generous commissions and bonuses to cooperating agents.

As a trusted real estate agent, you should help your buyers evaluate each and every incentive. Remember, these incentives come at a cost to the seller. While they may mean less money out-of-pocket for the buyer at closing, they are still part of the overall cost of the property. Ask to see the lender's "Truth-in-Lending" cost sheets and refer to title services for a preliminary HUD statement on the proposed or a similar closing before your buyer signs the developer's contract to purchase.

Evaluate incentives, line-by-line, with the buyer to determine the immediate value and the long-term cost implications. In most cases, the buyer can make a counter-offer to purchase at a lower price if some or all of the incentives are excluded. If the buyer is in a position to do so, it may be advisable to pay all the closing costs.

The lower price, if properly negotiated, will result in lower monthly payments, lower property taxes which are based on market value at closing, and possibly lower insurance premiums. This could add up to a significant savings over several years of ownership.

When considering a counteroffer to a developer, it is advisable to have it drawn up by a real estate attorney who understands the new construction process and is familiar with builders' contracts. If you cannot recommend two or more, ask your broker or other agents for referrals. The immediate out-of-pocket expense to the buyer may be modest and the attorney is likely to insist that his title services be used to conclude the transaction. This should be another benefit to your buyer, who will see you as an outstanding professional who protects their interest well beyond the closing.