Selling your home in a bad market

NEW YORK (CNNMoney.com) -- Home sales this year will be the lowest since 2002, according to the National Association of Realtors. If you're struggling to draw attention to your home, you may just have to up the ante. Here's how to make a deal more attractive to buyers.

This is the biggest stumbling block for most first-time home buyers. Offering to pay a full or partial down payment on the home may make the difference if you're looking to sell your home.

Now, keep in mind that covering the cost of a down payment can be a very expensive proposition. Consider this move only if you're in a very depressed housing market.

Closing costs - like title insurance and taxes - can really add up. They generally make up about 2 to 3 percent of the cost of the loan amount, according to Greg Zadel of Zadel Realty. And that may mean thousands of dollars out of your pocket.

Sure, a buyer is going to look at the bottom line here, and price reduction is one of the most common buyer incentives. But in an environment where interest rates are rising, making the interest rate attractive is also important.

A seller could offer to pay points so that a buyer with a 6.5 percent rate pays, say, 5.5 percent instead for the first year. Or the seller could offer to pay the first couple of mortgage payments or moving costs.

More sellers are taking out home warranties, says Connecticut real estate broker David D'Ausilio. The warranty acts like an insurance plan on the major mechanical items in the house, like the furnace or the cooling system.

That way the buyer goes in and knows that if anything happens to the appliances or air conditioning units, it will be repaired or replaced. It generally costs about $500 to $750 for a one-year policy.

Of course there have been deals where sellers offer a flat screen TV, or a free car or an exotic vacation. But people are looking for a house, they're not looking for a trip to Paris, says D'Ausilio.

You're better off spending your time fixing your home's warts. That means repairing the crumbling stairs, upgrading the furnace or replacing appliances.