FAQ: Why don't we just look for another house?

The answer here is simple: We have looked for other houses, and we continue to do so. 

I scour the MLS everyday looking for new listings that suit our needs, and haven't found anything that strikes me.

We have submitted offers on two houses since offering on the short sale.  One of those homes was a short sale and the seller didn't accept our offer (now that home is re-listed for far less than what we offerd for it, ironically, with another one of those "Approval letters" on hand) and another home with sellers who were not realistic about today's market...the second time we encountered that.  It seems sellers are in denial that their asking prices are too high, because their homes will not appraise for what they need/want out of the sale of the home.

The fact is, we as buyers can be picky in a market like this one.  (more on this "buyer's market" in the next post)  There are more houses than there are buyers.  And, until we find a house that is as good or better than this one, we want this one.  Or, we will walk away from buying all together...because we're not willing to settle, and you shouldn't be willing to do that, either.  Make a list of what you want in a home, decide what onthat list is a "must-have" and what on the list is "nice-to-have."  Then, don't budge.  Realtors will try to tell you that house isn't out there, or that it's located in a different county, etc. 

It's a lot like dating.  Stick to your guns. Don't lower your standards.  The difference between dating and buying a house: We're talking about an investment of hundreds of thousands of dollars...don't settle for anything less than exactly (or nearly exactly) what you want.