I agree with Rustico on this one (I hope he still doesn’t hate me for the gun thread). Has anyone here ever been house-poor? Let me tell you, it’s the worst feeling EVER. You literally perseverate constantly on how you’re going to make each payment, whether it be mortgage of electricity or food. Its sucks the life out of you. I intend never to feel that way again, which is why I havn’t bought in this market. I certainly would have had to stretch to afford what I want.

Raptorduck, your analogy to EBAY is spot on. I recently caught someone shill bidding on an item I really wanted. I bid on like the 3rd day of a 7 day auction, and wouldn’t you know it? 30 min before the auction closed I was outbid! Better hurry up and bid again! I had a price in mind I was willing to pay, bid up to that, when I still didn’t get it I found another one with a buy-it-now option for my max price, so I bought that one instead. Got a message 10 min after the auction closed stating “congratulations, the high bidder is unable to complete the transaction, you can have it for your last bid!” I ignored it, 10 min after that I received a message that the sale had been cancelled due to shill bidding.

In this housing market you are describing the equivalent of shill bidding. the secret to not getting burned is have an idea what you’re willing to pay, and don’t go over it. It is after all, your money. I realize removing emotion from a home purchase can be difficult, but trust me, you really don’t want to overextend, especially if you’re doing it because of some jerk Realtor/seller.