Shop for Furniture Now

Tapping into your inner interior decorator is a lot more affordablenow that furniture and home-goods retailers are slashing prices tonear-closeout levels. "This is one of the most promotional times for home goods in recentmemory," says John Gabriel, a stock analyst with Morningstar.Retailers hope lower prices will boost sales, which are down 10%from April of last year, according to the National RetailFederation. "Furniture is a purchase that can easily be postponed," explainsStefan Wille, president of Aktrin Furniture Information Center, anOntario-based market

researcher. "If you have a fridge that breaks,you have to replace it. But if your table has a scratch on it, youcan live with it for a while and replace it when times are better." These bargain-basement deals are expected to be short-lived,however. Jerry Epperson, a furniture-industry analyst withRichmond, Va.-based investment firm Mann, Armistead & Epperson,says furniture prices could jump as early as this summer. "We'relooking at leather furniture being 20% to 25% more expensive by theend of the year, wood furniture being 15% more expensive," he says. Here's how to find the best deals -- while they last: Aim for the middle. Continued demand for high-end furniture haskept prices elevated, says Mr. Wille. Meanwhile, the very cheapstuff carries such slim profit margins that it's unlikely shopperswill find steep discounts. "It's trying to squeeze blood out of astone," he says. Shop for mass-produced furniture of decentquality, however, and you'll find some significant deals. Pier 1Imports, for example, is offering clearance discounts of up to 75%through June 22. Raid overstock retailers. During the housing boom, Target, Wal-MartStores and Home Depot expanded their home-goods departments. Nowthat the housing market has gone bust, more of these stores' itemsare filtering down to closeout stores like Overstock.com, Big Lotsand Tuesday Morning, says Mr. Gabriel. Overstock, for example, hasmore than 115 couch models with discounts of up to 74%. Look for liquidation sales. In May, Linens 'n Things became thelatest big-name home-goods retailer to file for bankruptcyprotection, following both Wickes Furniture and Levitz Furniturethis year. While going-out-of-business sales are tough to beat,pitfalls include little recourse for returns or repairs. Yourchoice is also limited to what's in stock. Be wary of doingbusiness with a company that hasn't yet announced it's closing, butlooks to be on the rocks -- it may take your order (and cash), butfail to deliver the furniture. Typically, stores use a portion of your deposit to place the order,and the remainder to pay off manufacturers for earlier orders, saysFred Howes, a spokesman for the Better Business Bureau of CentralNorth Carolina, where many furniture manufacturers are based. Checkwith the Better Business Bureau to see if there have been a lot ofcomplaints against a company about furniture that never arrived. Negotiate. "Everybody needs business right now," says Mr. Epperson,so shoppers have more leverage to negotiate, not only for a betterprice but also for extras like free delivery. Try haggling tricks(like pretending you may not want the item that badly), huntingdown competitors' prices or simply asking if the store can offer abetter deal.