A little more info for you Piggs. We will be looking San Elijo Hills. All the homes are new and pretty much the same. 1800 sq ft-3500 sq ft homes are selling between $450,000-$600,000.
Last years avg was 3000 sq ft for $550,000.
We will be looking at around 2500 sq ft-3000 sq ft.

I have met several people who have moved here that bought bank owned with FHA and got 3% in closing costs in the last 6 months. They spent many months looking and making offers but they got one.

We aren’t debating whether to wait to save 20% or whether we should sell stock for the down payment. We would rather have the money in our accounts rather than the house. We have no debt and pay cash for cars. We are a one income family with kids so it is very important to us to have cash and stocks available and no car or credit debt.

My question is more about strategy. Focus on those that are missing appliances, no landscaping, etc. Focus on deals during the holidays?