Although, various studies have been conducted on the effectiveness of sales promotion in different sectors, there is a dearth of empirical work on sales promotion in the real estate industry in Nigeria despite the aggressiveness of operators of the industry exemplified by numerous sales promotion campaigns featured in recent legacy and new media platforms. This work therefore explored customers’ response to sales promotion offers of real estate firms in South-west Nigeria. The study was driven by the Mental Accounting Theory and adopted the mixed method research design. Using the purposive sampling technique, the sample for the study was drawn from residents who admitted to be aware of the sales promotion schemes of real estate firms operating in Ibadan and Akure metropolis, capital cities of Oyo and Ondo states in South-west Nigeria, respectively. Four hundred and seventy-two (472) respondents took part in the survey while 28 customers participated in the focus group discussion sessions. Ten (10) purposively selected marketing /promotion managers of real estate firms were also interviewed. Findings indicated that the majority of the respondents had a positive perception of the incentives. The most preferred incentive was discount (37.3%) while bonus pack, flexible payment and premiums (gifts) had 26.7%, 22.9% and 13.1% respectively. Most of the respondents indicated willingness to buy land if their preferred incentives are given by the firms. It was therefore recommended that real estate firms should identify customers’ preferences for promotion incentives before initiating promotion campaigns.