As of the spring of 2008 the market for luxury homes has changed drastically in the last two years. The housing boom in the United States peaked in late 2005 to early 2006 depending on locality. Since then the housing markets have tumbled in a free for all that some say is reminiscent of the Great Depression of the 1930s.

Prices of many luxury homes have fallen 30% or more from their peaks. Declines of 15-25% by the spring of 2008 were more common. All this suggests that its time for a new strategy if you're in the market for a luxury home.

First, recognize the fact that it is a brutal buyers market out there and sellers can be at a significant disadvantage. That means you as a potential buyer have the upper hand in any price negotiations. Use it. Do some research to see how long that luxury house has been on the market. The longer its been on the market the better your chances of obtaining even sharper discounts off the asking price.

This is the kind of market that invites buyers to demand every concession they can get. After the home inspection insist that any and all deficiencies be remedied or replaced. Chances are you'll get what you want, but only if you're bold enough to ask for it.