For agents to sell at this time, subsidies are really encouraged. But there is one serious implication. The incentives being given to buyers don't figure into the national home-price data reported by industry groups. This is covering up a steeper downturn in real estate sales.

The practice, which started to gain wide acceptance last year as a way for builders to move unsold inventory is now being aggressively practiced. This now accounts for 85% of all sales. And it's not just furniture being used to sweeten the deal.

A study made by Lisa Fowler, a researcher at George Mason University's Center for Regional Analysis found that prices in D.C. fell by 0.2% over the past year if incentives were included compared with a 0.7% rise if they weren't. The average home sold there for $470,000 in April, with a subsidy of $9,700.

Subsidies aren't new. But the latest surge, fueled by the huge run in prices in recent years, may have legs. Given all the equity that sellers have built up -- some $10.9 trillion, according to the Federal Reserve, versus $7.8 trillion in 2002 -- they usually don't mind forking over some of their gains to get the deal done. Buyers often find a subsidy more appealing than a lower price, since it means they don't have to put up as much cash. "Part of it is psychological, but part of it is financial," says Fowler.

More real estate agents tell their prospective clients to be creative to lure buyers. Some suggest that sellers should offer to pay a year's worth of association fees, annual property taxes or even closing costs. Part of their come on lines to interest buyers is to look forward to receiving incentives.

Some even provide cash enticements to the tune of tens of thousands of dollars. There are no national numbers.

The most aggressive deals may be downright fraudulent. Lenders scrutinize transactions to make sure any cash subsidies go toward legitimate home expenses and aren't a way for the buyer to avoid a required down payment. Generally, if the incentives top 6% of the purchase price, it's a red flag.

So if you as a buyer really want to own a home, you must put some money down, at least 10% if you have a not so good credit and make sure that what you are doing would not be fraudulent.