MINNEAPOLIS — Government cash didn’t help John Foley and Cindy Case sell their Minneapolis house before the federal home buyer’s tax credit expired at the end of April, so the couple decided to take matters into their own hands.

They hosted a backyard party with food and an open bar, invited the neighbors and professional contractors — in case potential buyers had questions about remodeling. To top it off, they’re offering their own $8,000 rebate on the $675,000 home.

Three years ago, such cash enticements were the norm. And cash was only the beginning. Sellers regularly tried to lure prospective buyers with free cars, big-screen TVs and stainless appliances at closing. But after nearly a year and a half of a government tax credit program and mounting economic uncertainty, sellers have scaled back on marketing gimmicks and buyer incentives, largely in an effort to limit their losses. Meanwhile, new rules aimed at reducing the risk of mortgage defaults have made many once-common incentives illegal, so many sellers are simply resorting to one of the oldest tricks in the book: dropping the price.

Aaron Dickinson of Edina Realty says that buyers today have access to more information about the market than ever before, so competitive pricing is the best way to attract attention.

“At the end of the day, buyers aren’t stupid,” he said. “Gimmicks don’t work well when buyers have so many avenues to be educated about what’s for sale and what has sold and for what price.”

In addition, buyers are worried about the economy and their jobs and have focused on getting the best price — and the lowest house payment — rather than a free perk. Indeed, many buyers are making decisions based on the assumption that someone in their family might lose their job, said Stephanie Gruver, a sales agent in the Minneapolis- St. Paul, Minn., area.

Perhaps the biggest reason for the decline in seller incentives comes from the mortgage industry itself. In an effort to reduce defaults, the government has cracked down on all forms of seller incentives. New rules are designed to eliminate any exchange of cash or property before and after a closing that might affect how much equity a buyer has in their new home.

Current government loan guidelines limit seller contributions — usually in the form of closing costs — on conventional mortgages to 3 percent of the purchase price; FHA loans allow a 6 percent contribution, but that’s going to be reduced to 3 percent during the next few months.

Lenders say that losses are mounting on mortgages in which appraisers failed to discover — or sellers failed to disclose — incentives that were never deducted from the sale price of the house. That’s led to improperly priced loans and inaccuracies in valuations. Already Fannie Mae and Freddie Mac are asking lenders to repurchase billions of dollars in improperly underwritten mortgages, including some in which enticements weren’t properly disclosed.