In the current real estate market, what's important to consider when contemplating an expensive purchase?

This is an attractive house in many respects; the sellers have made some lovely improvements. However, the sales price is already at the very top of what we can afford, and we'd still have to make a few immediate renovations (breaking up concrete to have space for a garden) that we'd have to pay for. Given the market, and the near certainty that prices will continue to decline over the next six to nine months, should we wait and see if we can find a house that we like as well as this one, or just take the plunge, trusting in the long-term potential of the real estate market to make it a reasonable investment? (We're not speculators; we'd live in this house for at least five-seven years). Thanks in advance for your informed opinions.

if you are streching to pay, you need to be sure the car is comfortable.
can u pay cash for any renovations?
NO? don't do it ROI might not be there.
wait till the house is lower and u have more ready reserve CASH.
visit daveramsey.com to learn some hard lessons from others mistakes.

Besides low-balling (which you should be doing in this market).

If this house has been on the market a while (over 45 days), ask for 20-30% off the price.

Ask if they can provide anything toward the house like the "downpayment" in the form of a seller-carry-back second at a reasonable interest rate.

If the sellers have a good loan, ask if they'll let you just make those payments instead of getting a new one that will cost you $3,000 per $100,000 investment - and will cost the homeowners closing costs as well (3 - 15%).

If they owe less than your offer price (i.e. they have "equity"), ask if they will take a "seller carry back" (aka purchase money mortgage) too.

As a real estate investor, I wait for deals in which people can get financed at 80% or less but need the balance and the sellers can't help. So if you know any real estate investors, that might be the way to go.

In any case, make sure to ask for the discount.

There are many variables, ask more questions if you want.

Make an offer for an amount you are more comfortable in affording. You might get it, especially if the sellers are motivated and it has been on the market for awhile.

Make an offer lower then u really willing to pay and go from there. Depending on the market, they may go for it. You may also want to check the county records and see when it was last bought and for how much. A lot of home sellers, are asking way too much. A sales price isnt what something is worth, its what someone is willing to pay. If you think the market is still in decline, wait see what happens.

I would wait.

Stretching to make a deal to me make no sense.

A better deal will come along. In the meantime, you can sock away more money.

Good Luck!