And what are we looking for?

In a word, we're looking for space. To some people, that would probably mean 5 acres and a 3000 square foot home. But for us, space would mean something with more than 1200 square feet and a yard big enough to fit a couple of adirondack chairs, a bar-be-que, and some plants.

Realtors advise buyers to think about and categorize their desires by "wants" and "needs." Our needs aren't very descriptive: at least two bedrooms, at least one bathroom, easy access to BART or a Transbay bus line, at least minimal yard/outdoor space. That doesn't really eliminate much of anything. Our wants are all over the map: it would be great to have 3 bedrooms and 2 bathrooms, an attached garage with interior access, original built-ins, a kitchen with an island, a separate family room, and two stories. We'd much prefer a house that already has a lot of the work done--and I don't mean updating, I mean a new to new-ish roof, upgraded/retrofitted foundation, modern wiring, new to new-ish furnace and water heater, energy efficient windows.

The homes in our price range in neighborhoods that we like often don't have a lot of those things. These are 1920s (or earlier; a few are from the 1930s) homes and construction back then just wasn't anywhere near as safe or secure as modern standards. On the other hand, these homes are full of character--the built-in bookshelves, dining room hutches, window seats, and the molding and woodwork are unlike anything you see in a modern home. Unfortunately, sellers seem to want to put all their "let's get this home ready to sell" budget into granite countertops and stainless steel appliances; I'd rather have shear walls and a 30-year roof and make my own kitchen remodeling choices down the line.

And of course we're looking for a deal. The house that we lost would have been a steal (I'm still crossing my fingers that it falls out of contract--awful, I know) and it's hard to see homes that aren't as nice listed (and going) for $75k more than that one. But we have learned that even in this "buyer's market" decent homes in good neighborhoods can still command, if not a bidding war, at least multiple offers and committed and qualified buyers.

We should be receiving disclosures on a couple homes our Realtor has recommended to us--maybe one of them will be "the one."